The Miami market is being strengthened by robust domestic and international demand, according to the Miami Association of Realtors. Lower-priced properties are increasingly finding themselves in short supply too, as construction is unable to keep pace with interest levels. This is a problem being faced across the entire market, in fact.
Second quarter active listings in Miami-Dade County totalled 13,151 in Q2. At the current sales pace, this reflects just 4.9 months of inventory for single family homes and 5.8 for condominiums. Supply declined 15.9 per cent for single family homes, while inventory increased 2.6 per cent for condominiums year-on-year. For the quarter, single family home supply fell by 3.1 per cent, primarily driven by a shortage of properties under $200,000 (£128,907 approximately).
Natascha Tello, chairman of the board of the Miami Association of Realtors, said: "The Miami real estate market continues to attract significant demand from both domestic and international buyers and investors. Second quarter statistics reflect a strengthening market with limited supply, surging sales, and a majority of cash transactions, mostly as a result of the presence of foreign buyers in Miami from worldwide markets."
In the condominium market, supply of lower-priced properties are struggling to keep up with demand. Properties listed below $50,000 declined by 63.5 per cent and listings between $50,000 and $100,000 decreased 37.6 per cent. Property prices are also on the up, with the median sales price for condominiums standing at $180,000 by the end of Q2 - an 18.4 per cent year-on-year rise. Quarter-by-quarter, values increased by 11 per cent for condominiums on the market, while single family homes saw a 9.4 per cent jump. Year-on-year, median prices increased by 18.4 per cent.
Sales of existing family homes and condominiums increased by 13.6 per cent in Q2, from 7,228 to 8,214 in 2012. Quarter-on-quarter, transactions increased by 27.2 per cent. Single family homes performed the best, increasing 19.5 per cent over the year, while condominiums increased sales by 8.9 per cent.