Residential market strong in Miami: report

Residential sales in Miami are up significantly, according to Douglas Elliman’s first quarter report released today.

The average sales price increased on a year-to-year basis by nearly 25 percent, to $393,343, and the percentage of closed sales increased by 12.6 percent, to 4,344, over the same period of time.

“The coastal mainland is showing the most strength because of an increase in sales activity. Inventory is low and distressed real estate is dropping out sharply year-over-year,” Jonathan Miller, president and CEO of Miller Samuel Real Estate Appraisers and Consultants, told The Real Deal. “Fewer lower-priced sales are helping to push the numbers higher.”

Miller, who authored the reports, said that the pace of the Miami market is very fast and that the percentage of sales with financing has increased since 2014.

“The increase in the market share [of financings] right now is 41 percent versus a year ago when it was 34.4 percent,” he said.

The reports cover five South Florida markets: Miami, Miami Beach, Fort Lauderdale, Boca Raton and Palm Beach and use MLS data.

Palm Beach saw a sharp decrease in the inventory of condos and single-family homes,down 25 percent and 9 percent, respectively.

“In many markets across the U.S. and in some markets in South Florida, you see inventory rise. In Palm Beach, it’s not happening,” Miller told TRD. “Inventory is down even though you have housing prices rising in general.”