Miami Condos For Sale Rising Along with Values
The number of Miami condos for sale is on the rise, while the prices of these existing condos continues their steady trend of ascension. From a macro perspective, we are seeing some degree of settling from the explosive rebound of the Great Recession. According to the latest news from the Miami Association of Realtors, the median Miami condo price rose 10.3 percent to $193,000 from a year earlier. Miami condo sales totaled 1,557 units in April, which was relatively equal to the same velocity of the previous year, and 10.2 percent above March.
This data indicates that the Miami market as a whole is offering a better buyer-seller balance. With prices rebounding sharply for more than two years following the historic crash of the real estate market, growing tensions were escalating over another perceived crash. The more moderate price increases and growing number of Miami condos for sale is healthy news for the market. The high-end luxury market certainly feels good based on activity. Cash is flowing into Miami at record levels from international buyers. In Miami-Dade, 70 percent of the condos and 45 percent of single-family homes sold in April were in cash deals.
Miami Pre-construction Condo Sales
Pre-construction condos sales are a core driver of the massive cash-flow into Miami condos. The market has evolved for the woes of the past; the system has gotten smarter. There is a greater margin of safety added into the marketplace because buyers are no longer able to put down the flimsy 20% deposits which were a strong contributing factor to the past real estate bust. (I’ll discuss more about pre-construction Miami condos for sale in future posts).
Better Negotiation Margins
Additional data reveals that Miami condos for sale lasted on the market at a median pace of 55 days, up from 43 days last year, according to the Miami Realtors. Condo units sold in April went for 93.6 percent of their original asking price — down from 97.2 percent a year ago. Keep in mind that these numbers primarily take into account the number of days on the market of existing Miami condos for sale, not the pre-construction deals that are taking place. Negotiations for pre-construction acquisitions require different tactics than conventional, existing condo deals. I have an extensive background in thus specific negotiations. For more check out My Story.
Supply of Miami Condos for Sale Increasing
The supply of Miami condos for sale has increased to 5.8 months of inventory from 4.3 months in April 2013. We’ll see these numbers continue to escalate as the new condo tower inventories hit the market. Traditional, or non-distressed, home sales continue to become a larger share of the Miami market – another highly positive sign. While there are still ample foreclosures, short sales have become less common due to a federal tax exemption on forgiven mortgage debt that expired at the end of 2013.
Basically – Miami is Amazing
When compared to the United States real estate market as a whole, Miami has done exceptionally well. The Standard & Poor’s Case-Shiller Home Price Index for 20 major metropolitan areas is one of the most closely watched gauges of the housing market and it has identified Miami as one of the top five cities in America, appreciating 31% since January of 2012. Lets see…amazing weather, no state income tax and and excellent real estate market – if you are not already living in Miami, maybe it’s time to consider it?