In the Miami metropolitan statistical area (MSA), there was a 54 percent increase of existing single-family home sales in June 2009 compared to June 2008. Miami was the strongest major metropolitan single-family market in Florida doubling the statewide increase of only 28 percent. The sales of existing condominiums in the Miami MSA increased by 19 percent compared to the same period last year. Nationally, sales of existing single-family homes and condominiums increased only 3.6 percent.
According to National Association of Realtors® (NAR) Chief Economist Lawrence Yun, the South Florida real estate market may have hit bottom. “We’re certainly near the bottom if not at the bottom already,” said Yun.
“The latest sales figures and median sales prices support the fact that the Miami market is stabilizing and recovery is well on its way,” said Rick Burch, 2009 Chairman of the Realtor Association of Greater Miami and the Beaches.
More Activity in Lower Price Ranges
In June 2009, a significant 55.8 percent of the existing condominiums in Miami-Dade County sold for $149,999 or less, more than in any other price range. Sixty-eight (68) percent of condominiums sold in the same month were purchased for $199,999 and lower. Eighty (80) percent of all condominiums sold in June cost $299,999 or less.
For existing single-family homes, the figures are similar: thirty-five (35) percent of homes purchased in June 2009 sold for $149,999 or less; 51 percent sold for $199,999 or less; and 72 percent sold for $299,999 or less.
According to Yun, the current conditions will allow buyers priced out during the real estate boom to return to the desirable South Florida market. “Affordability is the highest it’s been since 1970,” said Yun. “More people qualify to buy, but some are still sitting on the fence. More people are financially capable. The Miami real estate market is undervalued . . . but buyers recognizing the opportunity will help the market reach equilibrium. We’ve seen a boom and a bust, but the bust is too low. Foreclosures will continue to increase from last year, but there are buyers to purchase foreclosures, so there is a healing process.”
The average sales price for residential properties that sold in Miami-Dade County in June was $329,595 for single-family homes and $244,631 for condominiums, decreases of 30.1 percent and 43.4 percent respectively.
“Long term, Miami will outperform the rest of the country,” said Yun. “In 10, 20, 30 years, prices will be rising faster in Miami than in the rest of the country.”
Yun emphasized the importance of South Florida as the top market for international buyers, baby boomers, and U.S. migration – and said foreign and U.S. buyers will prefer South Florida over other affordable markets such as Nashville, Atlanta, and Birmingham. “Baby boomers like warm weather states and no state income tax states. . . South Florida will primarily see migration from the Northeast
Note: RAMB and the Southeast Florida Multiple Listing Service are the sources for statistics reported by the National Association of Realtors and Florida Association of Realtors.
By Oscar Resek
(305) 694.5354
oresek@kw.com
Certified International Property Specialist (CIPS)
Certified Residential Specialist (CRS)
theresekgroup.com
Keller Williams Realty Miami, Florida
