Less Selling Days Leads to Monthly Home Sales Decline in Miami

November 15, 2012 (Shirley Allen)

Sales of new and re-sale homes in the Miami area declined in September due to the month having three less selling days than August, but on a daily basis, home sales saw a slight increase over the previous month according to the latest housing data released by DataQuick.

A total of 8,969 new and resale homes and condos closed escrow in the Miami-Dade, Palm Beach and Broward counties area in September. Sales were 10.9 percent lower than the 10,062 homes sold in August but up 4.9 percent from the 8,546 homes sold in September of 2011.

Sales for the month were expected to be lower because September only had 19 business days compared to a normal month that typically has 21 or 22 business days. On a daily basis, homes sales were actually 3.3 percent higher than the previous month.

Home sales in the region typically decline around ten percent between August to September and were 14.7 percent lower than Miami’s average September sales rate.

Cash buyers accounted for 62.0 percent of the purchases made in September, which was about the same as the previous month and the previous year. Some cash buyers use alternative financing arrangements but at the time of purchase there was no indication of a purchase loan recorded.

The price that cash buyers paid for the homes they purchased in September increased to $112,500 from $106,200 in August and was up from $90,000 in September of last year.

Absentee buyers, usually investors and vacation home buyers, accounted for 40.6 percent of all homes sold in September paying a median price of $112,000, up from $104,000 in August and up from $90,000 in September of 2011.

The overall median price paid for new and resale homes and condos in September was $150,000, which was up from $146,000 in August and up from $130,000 in September of last year.

The median home price is 48.3 percent below the peak median price of $290,000 in September 2007. It was the ninth consecutive month that year-over-year prices have increased after falling for the previous 52 consecutive months.

Miami’s multi-million dollar luxury market, houses and condos that sold for $2 million or more, was down 25.3 percent from the previous month and down 21.4 percent from a year ago.

Tags: existing home sales, Miami, distressed properties, resale homes, condos, cash buyers, investors, median price

Source:
DataQuick