Foreclosures recently dropped below 10% in Miami for the first time in four years. Short sales are also in decline in Miami. Furthermore, home prices are on the rise. The Miami Association of Realtors recently reported that the median sales price for homes in Miami is now $220,000. This represents an increase of nearly 19% compared to median sales prices just one year ago. Home prices in Miami have actually steadily increased for the past 23 consecutive months.
Although foreclosures are on the decline and the market price is up in Miami, foreign buyers are still showing a strong interest in buying Miami properties. In fact, Miami remains one of the most popular markets for international buyers. The rising home values are actually a reflection of the continued strong demand from the overseas market for properties in Miami. In particular, Miami has recently witnessed a significant increase in cash sales. A significant percentage of the international buyers flocking to Miami now pay in cash.
The large influx of foreign buyers into Miami has actually transformed the city into a real estate hot spot. While some overseas buyers are looking for primary residences, many are searching for a vacation home or investment property. As a result, demand for property in Miami has now reached unprecedented levels.
In just the last few years, the Miami real estate market has become transformed from an area with one of the largest inventory gluts in the country to one where international buyers are battling over a limited supply of properties. Overall, the absorption rate in Miami has gone through the roof. This has proven to be particularly true in regards to condos, which are often popular with overseas buyers looking for vacation properties. In light of increased interested, many condo developers are now asking for larger purchase deposits than in the past.
The Miami Association of Realtors reported that a declining inventory supply combined with limited available land and a population surge in Miami will continue to drive appreciation of home prices.