Miami property sales surged in October, according to the Miami Association of Realtors.
The group's latest report reveals that single-family home sales in Miami-Dade County totalled 1,204, up 13.6 per cent from October last year, while condo sales jumped 6.5 per cent.
The growth is driven by a combination of expanding population and interest from both overseas investors and local buyers, says 2014 Chairman of the Board of the association, Liza Mendez.
âThe Miami real estate market continues to strengthen due to demand for local properties, as evidenced by sales that exceed record sales activity in 2013.â
While prices have climbed now for 35 months in a row, single-family homes remain at "affordable 2004 levels", as economic conditions for domestic house-hunters improve.
The median sale price for single-family homes increased 9.1 percent, up to $240,000 from $220,000 in October 2013. Compared to October 2013, the median sale price for condominiums increased by 8.8 percent to $185,000.
Overseas investors remain active, though. 55.8 percent of total closed sales in October were all-cash transactions, down from last year but still more than double the national figure of 27 per cent. With cash the preferred choice of 90 per cent of foreign buyers, it highlights the presence of international investors in the market. Indeed, all-cash sales accounted for 40.8 per cent of single-family home and 67.8 per cent of condominium closings.
After three years of record sales activity that resulted in an inventory shortage, seller confidence continues to result in more properties being listed for sale in Miami. But new listings are now increasing by narrower margins.
Active listings at the end of October increased 19.5 percent, from 14,893 in 2013 to 17,801 last month but remain 60 percent below levels 2008, when sales bottomed. New listings of single-family homes increased 6.8 percent, up to 2,316 in October 2014 from 2,169 during the same period in 2013.
"Seller confidence is resulting in greater inventory becoming available in the Miami real estate market," adds 2014 Miami Association of Realtors Residential President Francisco Angulo. "But strong home sales in Miami continue to yield rapid inventory absorption, resulting in rising prices even if at a more moderate pace."
Photo credit: Fifth World Art