Demand for South Florida property shrinks inventory and drives up prices

Miami /
Apr.April 18, 2013 10:00 AM

Waterfront properties are driving up sales prices in South Florida as inventory — from luxury to low-income — declines, according to first-quarter market reports released today by Douglas Elliman.

The gain in Miami-area sales prices coincides with a sharp decline in inventory, particularly of distressed properties, which fell 24.7 percent since the same period a year ago, the reports show.

The median sales price of short-sale and foreclosed condos in the Miami area has jumped from $95,000 to $111,500, a gain of 17.4 percent, while the sales price for the median non-distressed condo rose 7.4 percent, from $256,000 to $275,000.

South Florida’s 37.8 percent share of the U.S. distressed property market is at its lowest in three years, real estate appraiser Jonathan Miller told The Real Deal.

“Miami used to be the poster child for distressed inventory. That’s no longer the case,” Miller said.

As the supply of distressed properties declines, investors are shifting toward a different kind of housing stock, Miller said. The average non-distressed property is 29 percent larger than the average distressed property selling in South Florida, he said.

International investors continue strengthening South Florida’s coastal communities, Miller said, and without much use of credit. More than three out of four condo sales in Miami in the first quarter were purchased with cash.


Related Articles

arrow_forward_ios
Corcoran’s Julian Johnston, Luxe Living Realty’s Dora Puig, One Sotheby’s’ Jeff Miller, Douglas Elliman’s Dina Goldentayer and Douglas Elliman’s Oren Alexander
WATCH: Top luxury brokers go head to head at TRD’s Miami event
WATCH: Top luxury brokers go head to head at TRD’s Miami event
Avi Stern’s Mizner Development launches sales of Boca homes project
Avi Stern’s Mizner Development launches sales of Boca homes project
Avi Stern’s Mizner Development launches sales of Boca homes project
Brett Harris and Kevin Brill with 1125 North Shore Drive
Miami Beach brokers buy Normandy Shores home, plan $17M spec mansion
Miami Beach brokers buy Normandy Shores home, plan $17M spec mansion
Gus Rubio out at Douglas Elliman, months after promotion to president
Gus Rubio out at Douglas Elliman, months after promotion to president
Gus Rubio out at Douglas Elliman, months after promotion to president
Douglas Elliman agent Oliver Lloyd buys waterfront Miami Beach teardown
Douglas Elliman agent Oliver Lloyd buys waterfront Miami Beach teardown
Douglas Elliman agent Oliver Lloyd buys waterfront Miami Beach teardown
Tara West joins Compass to manage new developments in Florida
Tara West joins Compass to manage new developments in Florida
Tara West joins Compass to manage new developments in Florida
Investors buy Palm Beach office building for $38M
Investors buy Palm Beach office building for $38M
Investors buy Palm Beach office building for $38M
I’ll take it: David Martin sells waterfront Miami Beach home to his listing agent
I’ll take it: David Martin sells waterfront Miami Beach home to his listing agent
I’ll take it: David Martin sells waterfront Miami Beach home to his listing agent
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...