Douglas Elliman just published their 1Q 2014 Real Estate Market Reports covering Miami, Fort Lauderdale, Boca Raton, and Palm Beach. The report author Jonathan Miller of Miller Samuel, lover of charts and graphs, breaks down the Miami market for us so far this year.
[Via Douglas Elliman]
With the rising price trends of the past several years, Miami sellers are being pulled into the housing market and that is beginning to cause listing inventory to rise. But before I get to that, here are a few top level observations on the Miami residential market that were observed during the preparation of the 1Q 2014 Elliman Report: Miami Sales. A lot of high points were reached this quarter:
- Fourth consecutive quarter with highest median price recorded since 2008 (post credit crunch).
- Highest number of 1Q sales in 8 years.
- Highest non-distressed market share (69.4%) in the 4 years it has been recorded.
- Fastest average marketing time in the 8 years it has been tracked.
- Inventory rose from year ago near record low, gains concentrated in non-distressed inventory as prices rose.
Some additional thoughts:
Credit Remains Tight
Cash sales market share still dominated, but fell 1.7% to 63% overall as use of mortgages edged higher. By product type, the difference is extreme. Condo sales were 71.4% cash deals and single family were 48.9% cash deals. Credit remains unusually tight in an historical context yet sales activity remains elevated.
Inventory has bottomed
Here's a chart on listing inventory that illustrates that the supply "bottom" was reached last year. Why has supply expanded - aside from Curbed Miami's coverage of the new development product being introduced? Rising housing prices pull homeowners into the market. The market is coming off of record price lows of a few years ago. As prices rise, homeowner equity rises to the point where they can sell or they are feeling better about being in the market.—Jonathan Miller
· Douglas Elliman 1Q 2014 Market Reports [Douglas Elliman]