International property buyers have been framed as largely responsible for the 26.9% jump in the median price of condominiums in Miami-Dade County over last year. According to the latest report from the Miami Association of Realtors Miami condos sold for an average $165,000, 6.5% higher than the January median and sales were 6.3% up year on year.
Some 78.1% of sales were transacted completely in cash. According to the MAR this, "reflects the much stronger presence of international buyers" Ninety percent of foreign buyers in Florida purchase in cash, the group said.
Overall, 66.8 percent of home sales in Miami were all cash. In comparison, nationally all-cash deals accounted for 32 percent of transactions in February.
"Demand for housing in Miami from both foreign and domestic buyers continues to deplete local inventory and to drive significant price appreciation," said Natascha Tello, chairman of the board of MAR. "Miami remains a top market for net migration from other states in addition to being the top market in the nation for foreign buyers."
The report also showed that single-family home sales are now recovering strongly, with a 6.8% growth compared to last year, and the median price increased 10.9% compared to last year.
The strong performance of the Miami and wider Florida market still can’t be said to be standing on its own two feet, because distressed and repossessed properties still dominate. In January, 42.2 percent of all closed residential sales in Miami-Dade County were distressed sales, down from 53.6 percent a year ago, but below the national average, which is closer to 25 percent of sales.
That said, the US recovery is still proceeding apparently on course. Nationwide median home prices rose 11.6 in February from a year earlier, with the number of sales hitting the highest levels since 2009.
- Tuesday 26 March 2013