Active Miami Housing Market Shows Price Rises
27 July 2011
The housing market in Miami is showing the greatest level of activity for five years, and prices of non-distressed property are beginning to increase, according to a new report from Douglas Elliman.
This report analyses the data on single family homes and condos within the Miami Dade area, and also gives a breakdown on the number of distressed and non-distressed sales.
This latest report on the second quarter of 2011 shows that the non-distressed property market is beginning to stabilise, and there are clear indications that prices are on the increase, even though the news is still a little mixed in certain areas.
Sales in the South Beach area were up, as well prices, but in the Miami Beach and downtown Miami area, although sales increased prices were down.
The news for the North Miami Dade area is definitely mixed, although the good news is that the number of sales has increased significantly which is largely due to the high number of cash buyers who bought 78% of condo distressed sales. They also accounted for 71% of non-distressed sales of luxury condos.
The inventory of non-distressed single-family homes and condos is generally 35% larger than distressed property, and prices within this sector are up between 6% and 9%.
During the last quarter distressed sales accounted for 54% of the total number of sales, which is down from 65% compared to the previous quarter. This is thought to be due to the fact that banks aren't putting all the properties they own on the market, and experts expect this figure to rise later on in the year. Prices for distressed property are down between 8% and 14%.