The Miami real estate market is gaining steam, according to the inaugural Miami Residential Market Report issued today by StreetEasy. Based on sales closed during the first quarter of this year, the report found that the overall median sales price in Miami Dade County has increased for the eighth consecutive quarter. But it’s not just the median sales price increase that’s pushing the market ahead — tight inventory is also pushing up prices.
“As in so much of the country, inventory has been extremely tight,” said StreetEasy’s head of research Sofia Song in a statement from the firm. “Couple that with increased demand from domestic and foreign buyers, and it’s no surprise to see not only an increase in median sales price, but also an almost 20 percent drop in distressed sales this quarter.”
Current median sales price in Miami-Dade county ticks in at $172,900, which marks a 4.8 percent year-over-year increase.
But as far as distressed sales, there were 18.8 percent fewer in Miami Dade compared to last year, the report said. Broken down, condos saw 20 percent fewer distressed sales since last year, and 15.3 percent fewer than in the last quarter of 2012. Houses had 17.1 percent fewer distressed sales since last year and 15.1 percent fewer than the last quarter. The South Beach and the Fisher Island market had the biggest gains in this category: a 41.4 percent year-over-year gain in median price and a 73.5 percent jump in average price, respectively.
The number of closings jumped 18.5 percent year-over-year, and almost 2 percent quarter-over-quarter, the report shows. Condos saw 21.5 percent more closings year-over-year; single-family homes saw a 27.8 percent year-over-year gain.
But this doesn’t come without a hitch: new development sales in the county have been lagging. Closings in this category plummeted nearly 46 percent year-over-year and 39.1 percent quarter-over-quarter, according to the report. Upper Miami Beach alone saw a 72.2 percent decrease in new development closings since last year, while Greater Aventura and Bal Harbour both recorded a 69.3 percent decline. —Zachary Kussin