Miami Condos For Sale Are Getting More Expensive (786) 363-8551
The total number of listings, including Miami single-family homes and condominiums for sale, that pended* in Miami-Dade County during the month of January increased 3.0 percent, from 3,645 to 3,073, year-over-year and 22.2 percent compared to the previous month, according to the 25,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) systems. The number of Miami single-family and Miami condominium listings that pended in December 2012 increased 6.6 percent and 0.3 percent respectively compared to January 2012.
Pending sales along with other market indicators reflect the reality of a seller’s market. With supply levels below what is considered a balanced market, particularly for Miami single-family homes, sellers are benefiting from higher prices, increased equity, and rapid sales. However, Miami sales remain at 2003 levels, and the local market remains more affordable than other global cities.
The number of new Miami listings also rose in January compared to the previous year. An increase in properties for sale helps satisfy the strong demand that exists for Miami properties. The housing shortage in Miami-Dade County persists as active inventory remains below what is considered a balanced market.
In January, 2,790 Miami single-family homes for sale and 2,016 Miami condos for sale were listed, reflecting 12.9 percent and 8.6 percent increases respectively when compared to January 2012.
The Miami real estate market needs more properties to satisfy an exploding demand. The intense housing demand in Miami is fueled by foreign and second home buyers, population growth, and other factors. Whether it is rentals or properties for sale, Miami real estate is occupied and generating more interest. The current strength of the Miami market is not just beneficial for real estate, it is also helping boost the local economy. For example, by the end of this year, the bayfront site where The Miami Herald building now stands will be reduced to vacant land ready for redevelopment.
The demolition of the Herald headquarters is the first step in the Malaysian conglomerate Genting Group’s plans to turn the site into a luxury hotel with up to 500 rooms and several hundred luxury condos edged by a pedestrian bay walk.
Limited supply coupled with rising demand is yielding offers that are increasingly closer to asking price. In January, Miami single-family homes for sale and Miami condos for sale received 94.5 percent and 96.8 percent respectively the averages of the original list price, compared to 91.3 percent and 94.4 percent in January 2012. The increase in percent of original list price received is an indication that rising demand is absorbing inventory more rapidly.
Nationally, the Pending Home Sales Index, a forward-looking indicator based on contract signings, increased 4.5 percent to 105.9 in January from 101.3 in December, according to the National Association of Realtors. The index is 9.5 percent higher than the 96.7 reported in January 2012.
Increased pending sales are an indication of increased future sales. A sale is listed as pending when a contract is signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
*“Pended sales” are defined as only the sales that pended during a particular month.
Need more information about Miami real estate for sale? Call (786) 363-8551
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