South Florida’s housing recovery remained on track last month.
Sales of existing single-family homes in Miami-Dade County jumped
16.4 percent in December 2012 from a year earlier, making 2012 a record
year for sales, the Miami Association of Realtors said.
In Miami-Dade, the median price for a single-family home jumped 18.9
percent to $214,060 while that of an existing condominium soared 25.4
percent to $163,000 in December 2012 from a year earlier, marking 13
consecutive months of year-over-year gains. Miami-Dade condo sales
climbed 9.8 percent to 1,395 units in December.
Broward County’s housing market is showing similarly strong demand and rising prices.
In Broward, the median price of an existing single-family home surged
21.1 percent to $230,000 in December from a year earlier, according to
the Greater Fort Lauderdale Realtors. The median price of an existing
condo or townhouse in Broward jumped 24.7 percent to $95,100 year over
year, the group said.
Sales of single-family homes in Broward climbed 14.9 percent in
December from a year earlier while the volume of condo and townhouse
closings increased 4.7 percent over the period.
Sellers have gained the upper hand amid a tight inventory of
properties for sale and often can choose between competing offers,
according to Realtors.
The number of single-family homes on the market in Miami-Dade fell
27.5 percent in December to 5,000, while the number of condos declined
20.8 percent to 7,844 units, the Miami Realtors said.
Miami-Dade has just 5.2 months of supply of single-family homes and
5.7 months of supply of condos on the market — less than the six to nine
months of inventory typical of a market balanced between buyers and
sellers. “When it drops below six months of supply, you’re definitely
going to see price appreciation”.
Cash remains king, especially for condo transactions, a segment where
foreign investors play a huge role. In December 2012, 76 percent of
Miami-Dade condo sales were all-cash transactions, as were 49 percent of
single-family home deals.
“Buyers are quite surprised there is not more inventory after
everything they have been hearing,” said Eyvonne Kafourus, an agent with
Prudential Florida Realty in Fort Lauderdale. “I see a lot of people
coming in from other states, for job transfers and retirement.”
The inventory of single-family homes in Broward fell 35.5 percent in
December from a year earlier; the inventory of condos and townhomes for
sale declined 25.2 percent year over year, the Fort Lauderdale group
said.
“Buyers are getting aggravated, because they are losing deals,” said
Charles Bonfiglio, who recently assumed office as president of the
Greater Fort Lauderdale Realtors. “Eighty to 90 percent [of sales] are
multiple-offer situations. They’ve got to move quickly.”
Bonfiglio said offers over asking price are common, although appraisals frequently do not follow suit.
The housing market in South Florida has continued to make gains
despite a huge overhang of distressed properties that are a headwind on
prices.
In Miami-Dade, distressed properties accounted for 41 percent of total sales in December, down from 54.4 percent a year earlier.
Demand is robust for bank-owned properties and short sales, agents
say, and many would-be buyers find themselves outflanked by cash-rich
professional investors.
“They don’t last long,” Kafourus said of foreclosures. “You have to
be really on top of the market and searching every day. If you are
looking to get a mortgage, you’re at a disadvantage to the cash buyers.”
The median days on the market for a single-family home in Broward
dropped to 37 days in December from 56 days a year earlier, the Realtors
group said.
Florida has been seeing a flow of new arrivals after a period of
exodus during the downturn. In addition, foreign investors have rushed
in to take advantage of the prices, which are still far below their
highs before the crash.
“We’ve obviously turned the corner. We’ve noticed inventory
tightening up,” said Philip Vias, a broker associate with Prudential in
Fort Lauderdale.
Vias said more buyers seem to be coming in from the Northeast.
“What’s held things up is homes weren’t selling up north. Now it’s
starting to trickle down.”
Statewide in Florida, single-family home sales climbed 15.8 percent
in December from a year earlier as the median price increased 14.1
percent to $154,000.
