The Miami real estate market broke multiple records in residential sales last year, a trend industry experts hope carries over into 2012.
According to the Miami Association of Realtors, single-family home and condominium sales, combined, surged 23 percent in the fourth quarter when compared to a year earlier. During the three-month period there were 4,722 transactions last year, while there were only 5,839 during the fourth quarter of 2010.
"The Miami real estate market experienced further strengthening in the last quarter of 2011, a record-breaking year for Miami home sales," said MAR chairman Martha Pomares. "International buyers and investors have absorbed the excess inventory in existence two and three years ago, resulting in limited housing supply and now rising prices."
This spike in home sales resulted in a significant decline of Miami's home inventory. The industry group's report indicated that Miami's inventory thinned by nearly 40 percent during the fourth quarter from a year earlier, while decreasing just 6 percent from the third quarter.
Meanwhile, the report showed that short sales and foreclosed houses accounted for a significant share of all sales transactions. While a high presence of distressed properties tends to result in a drop in home prices, it was noted that prices of single-family homes remained relatively flat.