March 27, 2012
As we look forward to the real estate market in 2012, it's important to look back at 2011 to know what to expect for this coming year. What we noticed was that Miami, a location where international buyers are attributed to the majority of the sales more than anywhere else in the nation, was the fastest rebounding residential property market in the United States. Sales in Miami did so well, they beat the prior sales record set in 2005.
"The Miami real estate market exceeded all expectations in 2011, posting record sales that yielded rising prices," said Jack H. Levine, 2011 Chairman of the Board of the Miami Association of Realtors. "Miami is a very unique city in most ways, and the real estate market recovery proved no different. Miami is hot, and it's not just the weather!"
Both single-family homes and condominiums saw a significant rise in sales compared to the year before, with single-family homes seeing a 16% increase in December, and a 22% increase for condominiums. Closed sales of condominiums surged 54%, from 9,760 in 2010 to 15,009 in 2011. Total single-family home sales increased 36% from 7,308 in 2010 to 9,920 in 2011.
"2011 was a remarkable year for the Miami real estate market," said Martha Pomares, 2012 Chairman of the Board of the Miami Association of Realtors. "Unlike other markets throughout the U.S., Miami has recovered faster and stronger than expected and is poised for further growth and double-digit price appreciation in 2012."
The role of international buyers in Miami’s recent real estate surge has been phenomenal. Brazil, Russia, and now China seem to be playing a significant role in showing interest towards luxury properties in the region.
"International buyers and investors continue to play a major role in boosting market performance in Miami," said 2012 Miami Association of Realtors Residential President Patricia Delinois. "Miami is the top area in the U.S. for international real estate buyers. These buyers from worldwide markets will continue to strengthen the Miami market long into the future."
The biggest evidence of the importance of Miami shows in the percentage of cash sales in transactions. Nationally, average cash sales made up 29% of transactions whereas cash sales in Miami made up 63% of closed sales in December.
Source: International Buyers Help Miami Break All-Time Sales Record in 2011
