Miami’s single family homes show double-digit growth

on Mar 24, 2015
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An increase in job growth in the city, as well as a decent economy is refuelling interest in the residential real estate market, with many now seeing returning confidence to the sector.
Sales of single family homes in ‘The Magic City’ showed double-digit growth last month and according to the Miami Association of Realtors, all residential median sales prices continued three years of positive growth.
Despite the increase in prices over the past three years, single family homes still remain at affordable levels. The average price for such a property increased by four percent last month to $431,746 (£288,799) when compared with February 2014. Condominiums have also seen another price increase, marking the 44th month of continuous growth. Average sales last month were up 8.4 percent to $365,856 (£244,727) in comparison to a year earlier.
Demand for housing in the Floridian city is at an all-time high and property prices are expected to continue rising throughout 2015, albeit at a slower rate. Due to the low supply of housing and the vast demand for single family homes, the market in Miami is currently considered to be strongly seller driven. Growth will still be seen in residential properties though, as demand for already-existing condos and new developments is also increasing.
Cash sales in Miami rose in February, relative to the previous month, but are actually down when compared with the same month last year. Miami-Dade County saw 58.8 percent of February’s total sales closed as cash transactions, up 1.6 percent on last month. Actually, Miami’s percentage of all-cash sales is more than double the national average and 82 percent of international investors in Florida purchase properties all in cash.
Following the three years of continuous sales growth that decreased housing supply in Miami, seller confidence is now resulting in more properties being listed. The number of active listings at the end of last month had increased to 18,353 from 16,836 in February of last year. Comparing that to the current rate of sales, there is an estimated 5.5 month supply of single family homes and 8.9 month supply of condominium inventory.
As of the moment, there are 69 condominium towers being constructed in Miami east of I-95, featuring a total of 9,515 properties between them. A further 79 towers are planned, which will add an extra 11,816 units. On top of this, 54 more towers have been proposed, which would amount to another 8,403 properties.

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