MAR: Miami Home Prices Hop 18.9% in October

October continued Miami’s strong housing streak, according to the Miami Association of Realtors.

Miami home prices increased for the 23rd straight month in October, rising 18.9 percent year-over-year to $220,000, according to the newest analysis by the Miami Association of Realtors (MAR).

Condo prices in the Magic City saw similar increases, rising 17.2 percent to $170,000. Natascha Tello, the 2013 chairman of the board for MAR, said such numbers show the strength of Miami’s housing market.

“The 23 consecutive months of appreciation of Miami home and condo prices is a remarkable sign of the vitality and strength of South Florida’s real estate market,” Tello said. “Rising home and condo values is a reflection of increased demand from international buyers from around the world, creating a great opportunity for sellers.”

Miami Real Estate – Key Trends

Other notable findings in MAR’s report included:

• Home sales were relatively flat from September to October, but they were actually down 6.5 percent from Oct. 2012.
• Condo sales were a bit stronger, declining just 1.2 percent from last year but rising 4.7 percent from September.
• On a very positive note, 60.5 percent of home sales in October were traditional sales, with REO and short sales accounting for 20.8 and 18.8 percent of sales, respectively; by comparison, just 49.8 percent of sales last October were traditional.
• Perhaps most encouraging of all, though, was Miami’s progress on the housing inventory front. The number of active listings in Miami was up 18.3 percent, rising from 12,597 in Oct. 2012 to 14,903 last month; single-family home listings were up 10.4 percent, while condo listings were up 23.5 percent.
• Overall, there is now a 5.3 month supply of single-family homes and 6.6 months of supply of condominiums in Miami-Dade, representing an increase of 17.8 percent and 24.5 percent, respectively, compared to year-ago levels.

 Cash is (Still) King in Miami

Unsurprisingly, cash remained king in Miami, with 48.9 percent of all home sales in October being all-cash deals. That’s up 3.2 percentage points from a year ago, and is especially noteworthy compared with national averages; according to the latest numbers from NAR, 31 percent of all existing-home sales were all-cash.

The situation was even more pronounced in the condo market, where 71.2 percent of all sales were all-cash.

Fernando I. Martinez, MAR’s residential president, said the preponderance of all-cash is a sign of Miami’s strong international market.

“Moreover, the significant growth in cash sales shows that Miami is the destination of choice for international buyers, who continue to play a major role in the local market,” he said.

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