Miami Condos Sales Explode in 2011
Closed and pending sales data for condominiums in the second quarter of 2011 Miami-Dade County show a twenty-seven (27%) percent increase over the same period in 2010. All this without last years “First Time Buyers Credit!”
These increased sales have reduced the available inventory significantly, with available units dropping to below ten months supply. This is good news for both sellers and buyers. It indicates that there are a balanced number of buyers and sellers in the condo market. This also indicates that prices will continue to rise going in the future.
The average price per square foot has been increasing ever since April 2010. As the inventory continues to shrink and the sales remain strong, the prices with continue up. We have already seen this in the new towers where the developers are still selling units. Even with multiple distressed sales from lenders foreclosures and short sales, developer sales prices are rising.
The most useful information for determining where prices are headed is the Months of Inventory report. This data is derived by dividing the available listings by the sales from the most recent period. Below six (6) months is considered a “Sellers” Market; above twelve (12) months is a “Buyers” market. In between the two, is an “Equilibrium” market with a balanced number of buyers and sellers. Prices stabilize during this time and gradually start to rise.
It is obvious to most observers of market trends that any individual transaction is really between just two parties…the seller and the buyer. This is a micro-economic event and can be completely outside any market trend. The reasons for the dramatic increase in sales is a function of three factors: 1) repricing of condos to the current market values, 2) rapid influx of international buyers and 3) the overall feeling that the economy is better; based on the rise in the equities market from 2009.
As Licensed Real Estate Brokers, Vandenburg Properties can assist you in taking full advantage of this market, whether you are thinking of buying or selling. Contact us anytime for market information that may be specific to your needs.