Miami Home Sales Continue Dramatic Increase in May

NAR Chief Economist Says Florida Market May Have Bottomed

Miami, FL - In Miami, there was a 76 percent increase of existing single-family home sales in May 2009 compared to May 2008.  Miami was the strongest single-family market in Florida showing a substantial increase compared to only 16 percent statewide.  The sales of existing condominiums in Miami-Dade increased by 36 percent compared to the same period last year - and to the 21 percent statewide increase.  The Miami real estate market has experienced a surge in sales each of the last 10 months.   

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 at the recent International Real Estate Congress and Expo in Miami.  

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." 

Yun said, "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." 

"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 believes the short term prognosis is also positive, as it is likely that those buying in June 2009 will look back in June 2010 and see appreciation. 

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 region," said Yun. 

Referring to the impact of international buyers in South Florida, Yun said, "Miami is globally recognized.  Compared to other world-recognized markets, Miami will be the most affordable." 

The number of days a property stays on the market and inventory levels continue to decrease substantially, other indicators that point to the local market bottoming.  The inventory of listings in the Southeast Florida Multiple Listing Service has dropped more than 40 percent in less than a year - from 43,095 to 30,631 ? and May 2009 brought a 3.4 percent decrease in just one month.   

According to Yun, "Foreclosures will continue to increase from last year, but there are buyers to purchase foreclosures, so there is a healing process." 

The median sales price for single-family homes reported in Miami-Dade in May 2009 was $194,700, a 39 percent drop from the previous year.  The median sales price for condominiums was $140,300, a 50 percent decrease from May 2008.  Statewide, sales prices dropped 29 percent for single-family and 38 percent for condominiums.  While down from a year ago, median sales prices increased in May 2009 compared to April 2009, from $177,000 to $194,700 for single-family and from $133,500 to $140,300 for condominiums.