The property prices in Miami-Dade County have been on a constant rise for the past 30 quarters, or seven and a half years. A recent report from the Miami Association of Realtors has found that the median price for a single-family home in the county increased 2.9% to $360,000 in the second quarter compared to what it was a year ago. Overall, it increased by 10% in a year. Condo prices also rose during this time. They went up 2.5% to $247,000.
Even though the property prices had risen, the number of transactions were on the rise, as well. Not including the new-build condos, there were 7,861 properties that were bought or sold. Out of those properties, 3,854 were single-family homes, and 4,033 were condos. The volume of the transaction was $3.6 billion.
Cash Sales Still Popular, but Not as Strong
The cash purchases for properties in Miami were at 38.1% last year, and they took a slight dip to 34.4% this year. There are far more cash sales happening in the Miami area than in most parts of the country, as the national average is 16%. For the cash sales, 20.9% were for single-family homes, and 47.4% were for condos.
One of the reasons that cash buys happen so frequently in Miami is because the area has strong interest from international buyers. They will often buy the property entirely with cash.
Even with Property Prices Rising, Why Does the Demand Continue to Be High?
Much of the demand for the properties in Miami are coming from other locations in the country and other parts of the world. In some cases, they are coming from states that have a high amount of taxes, and they find the tax situation in Florida to be more in their favor. Also, there is also the fact that mortgage rates are declining. The rates are currently at a three-year low, and there is the potential for them to drop further.
People also know that Miami has a lot to offer, including good weather. They also see it as a good investment opportunity because they can always rent out a property if they are not living there.
As you can see, there are a lot of reasons to buy in Miami, and the market is still going very strong. It could be a good option for many investors and home-buyers who are looking for a popular, thriving market