International buyers flock to Miami
International buyers are having a positive effect on the real estate market in Miami, Florida, as pending home sales have increased in the state by 15% since a year ago.
Sales, including single family homes and condominiums, are also up 23 in May compared to the previous month according to the Miami Association of Realtors and the local Multiple Listing Service (MLS) systems.
‘International buyers increasingly are having a positive effect on the Miami real estate market, as sales continue to exceed last year’s levels, which were boosted by the homebuyers tax credit,’ said Jack Levine, 2011 chairman of the board of the Miami Association of Realtors.
‘Current figures corroborate the healthy market activity agents are experiencing first hand and the evident demand for local properties,’ he added.
In the current month, pending sales of single-family homes performed better than that of condominiums sales. Pending sales of single-family homes are 12% higher than they were a year ago, up from 4,490, and are 2.2% above what they were last month, up from 4,919.
Pending sales of condominiums are 18% above what they were a year ago, from 5,876 to 6,909, and a negligible 0.46% lower compared to last month, when pending condominium sales totalled 6,941.
‘Affordability is another important factor contributing to rising pending and closed sales. Despite the sharp reduction in South Florida housing inventory, record affordability is motivating buyers, as substantiated by increased activity at lower price points,’ said 2011 Miami Association of Realtors residential president Ralph De Martino.
Nationally, the Pending Home Sales Index, a forward looking indicator based on contract signings, rose 8.2% to 88.8% in May from a downwardly revised 82.1 in April, according to the National Association of Realtors. The index is 13.4% higher than the 78.3% reported in May 2010.
Increased pending sales is an indication of increased future sales. A sale is listed as pending when a contract is signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.