Home sales in the Miami-area continued to gain momentum in February after many years of relatively weak performance in the wake of the housing market collapse.
According to real estate data from the Miami Association of Realtors, the number of pending home sales in Miami-Dade County spiked 29 percent on an annual basis in February, while rising 14 percent from the previous month. As a result, in February, there were a reported 3,695 home sales in this stage of the transaction.
While the rate of pending home sales is only an indicator of future sales, since the transaction has yet to officially close, this rate is subject to change.
"Despite the significant decline of housing inventory in the Miami real estate market, we continue to see rising demand," said MAR chairwoman Martha Pomares. "Rising pending sales point to increased future demand locally, as Miami continues to attract U.S. migration, in addition to substantial international buyers and investors and second and vacation homebuyers."
The performance of pending home sales in the Miami marketplace was much stronger than the national average. The National Association of Realtors recently found that in February, the rate had dipped 0.5 percent from the previous month.
However, pending sales of single-family homes weren't the only local sector to record growth during the period, as condominium pending sales increased 17 percent from a year earlier.
Meanwhile, the report noted that the neighboring Broward County, which is often encompassed in Miami-Dade real estate reports is experiencing its own spike in housing activity. MAR found that number of home sales pending in the county rose 53 percent from February 2011 to 3,902 units. A year earlier it was found that there were only 2,555 homes in area with sales pending.
Additionally, the condominium market in Broward County also experienced a surge in growth similar to Miami. The report indicated that pending condo sales in the local marketplace rose 55.2 percent as consumers continued to capitalize on affordable buying conditions.
Recent declines in home prices have maintained the level of housing affordability at an all-time high. NAR recently found that the current relationship between property values, mortgage rates and median household incomes is offering a number of affordably outlets for consumers to make the transition to homeownership.