South Florida Market Trends

Thursday, August 20, 2009

by Michael Peron

Pending home sales are up for the fifth consecutive month, the first time in six years for such a streak, according to the National Association of Realtors®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in June, rose 3.6 percent to 94.6 from an upwardly revised reading of 91.3 in May, and is 6.7 percent above June 2008 when it was 88.7. The last time there were five consecutive monthly gains was in July 2003.

Lawrence Yun, NAR chief economist, said a combination of positive market factors is fueling the gains. "Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who've been on the sidelines. Activity has been consistently much stronger for lower priced homes," he said. "Because it may take as long as two months to close on a home after signing a contract, first-time buyers must act fairly soon to take advantage of the $8,000 tax credit because they must close on the sale by November 30."

Let’s take a look at the Miami real estate sales statistics for July compared to July 2008 to see how the market is looking in South Florida:

Single Family Homes Sales in Miami

The Miami market is representative of the South Florida market as a whole when comparing July 2009 to July 2008. The number of single family homes sold in 2009 increased by 33.4 percent compared to 2008. The number of new homes on the market decreased by 36.8 percent. The average sales price declined by 39.7 percent to $194,293, while the year-to-date average sales price declined 38.5 percent to $208,224.

Date	New Listings	Sold Listings	Average Sales Price	Y-to-D Average Price
July 2009	1,063	473	$194,293	$208,224
July 2008	1,682	315	$322,236	$338,601

Condo/Coop/Townhouse/Villa Sales in Miami

July 2009 market statistics for condo/townhouses etc. in Miami showed an increase in sales with sold listings up by 23.5 percent compared to 2008. New listings decreased by 26.1 percent. The average sales price dropped 46.9 percent to $150,074 and the year-to-date sales price dropped 46.9 percent to $162,952.