Miami Homes for Sale, October Stadistics

In October, Miami Beach Condos sales surpassed single-family sales. In Miami-Dade, they were up 47% over a year ago and in Broward 68%. Month-to-month sales in Miami-Dade rose 5%. In Broward they rose 7%.

From September to October in home sales overall, that compares with a national increase of 10%. As buyers hurried to close before the deadline, Realtors credited the unexpected rise to the pending expiration of the $8,000 first-time home buyer tax credit. Congress extended the credit to April 30 earlier this month, and extended it to include a $6,500 credit for existing homeowners who qualify.

Analysts look at the supply of Miami homes for sale as the most important indicator of market health, because it estimates demand in relation to supply, to understand the pricing dynamic. It's calculated by dividing the number of Miami homes for sale by the number of homes sold in the most recent month.

Typically, when the supply of Miami homes for sale stands at a year or more, prices are apt to fall. Prices remain flat, with a six- to nine-month supply. When the supply drops below six months, sales activity begins to drive price appreciation, as it has for recent Miami homes priced under $100,000.

The recession caveat: the stuffed pipeline of Miami homes not yet listed for sale by banks and homes still working their way through the foreclosure process will likely continue delivering tens of thousands of properties to the market over the next year.

According to the MLS, below is a sampling of the supply of Miami homes for sale in Miami-Dade in October,:

• Under $100,000: four-month supply
• Under $100,000: four-month supply
  
• Under $300,000: eight-month supply
  
• $300,000 to $1 million: 21-month supply
  
• Over $1 million: four-year supply.
  

Contributed by MLR Realty