Sales Up Marginally, Median Price Sharply Lower for Miami Real Estate in February

posted on March 23rd, 2010 filed under: Real Estate Market Data

Slightly more existing homes in the Miami metro area were sold in February than January, according to the Florida Association of Realtors.  But the median price took a significant hit.

Sales of existing single-family properties rose to 445 in February from 436 in January.

The median price is where the action was, falling from $208,100 in January to $191,100 in February.  That’s the lowest since November’s reading of $184,800.

As explained in connection with last month’s data release, the originally scheduled November 30 expiration of the $8,000 tax credit probably caused the median price to pop higher in December and January.  Now the pop has turned to a drop.

Perhaps more low-end purchases are working their way through the system before the new, extended expiration of the credit (contracts by April 30, closings by June 30).  But it’s also possible that the government engineered a dead-cat bounce in the real estate market over the past year, and that prices will take another leg down once the artificial price supports are removed.

After all, real estate prices in Miami and Coral Gables remain markedly elevated relative to the fundamentals: incomes, rents and historical property values.

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posted by // This entry was posted on Tuesday, March 23rd, 2010 at 10:42 pm and is filed under Real Estate Market Data. You can follow any responses to this entry through the RSS 2.0 feed.

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