Miami June 2007 Home Sales

August 10, 2007

Miami metro area homes sold at their slowest pace in a decade in June, led by relatively steep sales declines in two categories: new construction and homes in lower-cost areas. The trend toward a greater portion of sales occurring outside of the most affordable neighborhoods helped push the three-county region's median sale price up to a new record, a real estate information service reported.

A total of 9,867 new and resale houses and condos sold in the metropolitan area encompassing Miami-Dade, Palm Beach and Broward counties. That was down 3.9 percent from 10,269 in May and down 33.3 percent from June 2006, according to DataQuick Information Systems of La Jolla, Calif. The firm tracks real estate trends nationally via public property records.

Total escrow closings for all homes combined were the lowest for a June since 1997 and marked the 21st consecutive month in which Miami metro area sales have fallen on a year-over-year basis. Sales fell the most for entry-level homes: Those priced below $200,000 saw a 40 percent year-over-year decline , while sales of homes priced over $800,000 eased 16 percent. For homes where public records show either a price or loan of $2 million or more, sales decreased just 11 percent, from 127 in June 2006 to 113 during June this year.

The metro area's overall median sale price for new and resale homes combined was a record $289,000 in June, up 3.6 percent from $278,900 in May and up 5.1 percent from $275,000 in June 2006. New home medians in each of the region's three counties saw the biggest annual gains. However, those increases are more likely the result of fewer lower-cost condos selling this year compared with last, rather than the result of appreciation.

The shift toward a higher percentage of sales occurring in mid-to-higher-price neighborhoods this year puts upward pressure on the median sale price, which is the point where half of the homes sold for more and half for less. Another price gauge analysts use, the median price paid per square foot for resale houses, indicates greater weakness in Miami area home values. The three-county region's median per square foot fell to $196 in June, down 7.1 percent from the peak level of $211, reached in both May 2006 and June 2006. June’s level was the lowest since the median price per square foot was $192 in July 2005.

County-by-county highlights: Comparing June 2007 to June 2006

Broward County:

+ The median sale price for all homes combined was $271,900, up 2.2 percent. The median for resale single-family homes was flat at $330,000, while the resale condo median fell 0.7 percent to $183,750.

+Total sales dropped 35.9 percent.

Miami-Dade County:

+The overall median sale price rose to a record $302,200, up 14 percent. However, that was boosted by a 23.8 percent increase in the new-home median, which was a record $290,000. The median for resale detached homes was $365,000, up 7.7 percent, while the resale condo median hit a record $249,000, up 6 percent.

+Total sales fell 33.4 percent, led by a 36.1 percent decline in new-home sales.

Palm Beach County:

+The overall median sale price fell to $295,000, down 3.2 percent. It was the ninth consecutive month in which the median has fallen on a year-over-year basis. The median for resale single-family homes dropped 2.8 percent, to $316,000, while the resale condo median declined 7.8 percent to $185,000.

+Total sales fell 29.7, led by a 42.7 percent drop in new-home sales.

Miami-Fort Lauderdale-Miami Beach, FL  MSA
	# Sales			Median price
	Jun06	Jun07	%Chg	Jun-06	Jun-07	%Chg
Resale houses	6,278	4,314	-31.3%	$330,000	$340,000	3.0%
Resale condos	4,143	2,835	-31.6%	$210,000	$210,000	0.0%
New homes	4,380	2,718	-37.9%	$252,800	$289,900	14.7%
All homes	14,801	9,867	-33.3%	$275,000	$289,000	5.1%

Media calls: Andrew LePage (916)456-7157 or John Karevoll (909) 867-9534

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