Miami is Hot – the property market, that is.
In the second quarter 2012, the Miami Real Estate market demonstrated very strong performance, with significant price increases, as inventory plummeted (by 29%) over the same prior year quarter.
Compared to the same prior year quarter, on a price per square foot basis, condo prices increased by 16%, single-family home prices increased by 10%, luxury condo prices increased by 13%, and luxury single-family home prices increased by 14%. South Beach condo activity remained steady, as prices increased 18%. Downtown Miami activity fell 5% while prices increased 20%.
Distressed sales fell sharply and days on the market had the fastest rate in more than six years at 68 days. At the end of July, pending sales were up 24% compared to the same prior year period suggesting demand will continue to yield strong price appreciation.
With the lack of inventory and strong demand (both national and international), Miami developers introduced new projects on a weekly basis. One new project is Icon Bay, following Icon South Beach and Icon Brickell. Three other luxury projects, Porsche Design Tower, Regalia, and Grove at Grand Bay, follow the recent success in the luxury segment which has shown strong performance and record setting prices for both luxury condos and luxury homes.