Miami Residential Summer Update

Good news for Miami homeowners and home sellers!

For years, we have watched real estate prices in South Florida tumble; but for the first time since 2006, it appears that trend is reversing.

According to market data provided by Trulia.com, the average price per square foot for Miami was $159 for the 2nd quarter 2011, an increase of 48.6% over the same period last year. The average-listing price for homes for sale in Miami zip codes 33129, 33145, 33133, 33131 was $412,514 for the week ending Jun 29.

Nicholas Joseph, a new homebuyer talks about what he hopes will be his home any day now. The two-story house in Coral Gables he just put under contract is exactly what he was looking for. He said “I have looked at over 65 homes and found myself competing with other buyers on every suitable listing. We are not really seeing any great steals from the asking price to the actual selling price,” he said. “I’m now offering full-price when I find something I like,” said Joseph.

Can we expect prices to continue to drop? “Definitely not in the popular neighborhoods of Coral Gables, Coconut Grove or The Roads,” Realtor Eric Yerina said, “Many homes are appreciating, especially in the close-to-downtown areas.” Homes that used to take many months to move, “Now sell in a week or two because the supply has greatly decreased.” Yerina recently sold a home just outside the Roads for about 15% ABOVE its asking price.

It’s all about supply and demand, and lately supply is disappearing quickly. Yerina said “People believe that these prices are as low as they are ever going to get. We will definitely sell more homes and condos in Miami-Dade county this year than we have sold any year in our history.”

The Realtors’ Association has the numbers to prove it. During the peak of our market in 2005, Miami-Dade Realtors averaged 2,200 sales a month. This year they are pushing close to 2,500.

With homes again selling, demand is pushing prices up. This is a very good news for sellers and homeowners indeed.

* Ron Sadaka is a licensed real estate broker and advisor serving investors throughout the US since 1987. Please feel free to contact him below.