It's a Seller's Market in Miami
According to the Miami Association of Realtors, Miami single-family home prices have risen for more than five consecutive years and existing condo prices have appreciated in 65 of the last 67 months. Miami-Dade County single-family home prices jumped 9.5 percent in December 2016, increasing from $278,500 to $305,000. Existing condos increased 1.3 percent, from $207,400 to $210,000. Miami single-family home prices have now risen for 61 consecutive months. Condo prices have increased in 65 of the last 67 months, a streak spanning more than five years. "Low supply and high demand for Miami single-family homes have fueled five-plus years of residential price growth," said Christopher Zoller, the 2017 Miami Association of Realtors chairman of the board. "In addition to rising prices, Miami also saw more mid-market single-family home transactions and more traditional or non-distressed home sales in December." Despite the rise in prices, Miami real estate remains a major bargain compared to other global cities. A condominium in the Miami-Fort Lauderdale-Miami Beach metropolitan area typically cost $170,000 in 2016 Q3, according to the National Association of Realtors. The average cost of a 120 square meter apartment in 2016 in the prime inner city areas of London ($4.1 million), Hong Kong ($3.1 million), and New York ($2.2 million) were at least ten times higher, according to Global Property Guide. Rising mortgage rates are another factor impacting local sales. More homebuyers are coming off the sidelines to take advantage of current mortgage rates, which despite their increases are still at historic lows. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage is 4.20 percent. December's average commitment rate was the highest rate since April 2014 (4.32 percent). The average rate in 1990, in comparison, was 10.13 percent.
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