June Pending Home Sales: Miami-Dade Pending Home Sales Increase 53 Percent from a Year Ago

Miami, FL - Total pending home sales - including single-family and condominiums - in Miami-Dade County increased 53 percent in June 2010 compared to June 2009, from 6,761 to 10,366, and decreased less than one percent, from 10,456 to 10,366, compared to the previous month according to the Realtor Association of Greater Miami and the Beaches (RAMB) and the Southeast Florida Multiple Listing Service (SEFMLS).

Despite the expiration of the tax credit, which helped boost the state of the South Florida residential real estate industry, the local market continues to strengthen, as evidenced by rising home sales and prices. South Florida and Florida continue to be the top areas in the nation for international buying activity. It is estimated that 60 percent of current sales involve international buyers, who were never eligible for the tax credit, and cash transactions. Local and U.S. buyers continue to show interest in South Florida properties due to record affordability and seller, builder, and real estate company incentives.

"Despite the expiration of the tax credit, pending home sales year-over-year continue to post significant increases," said Terri Bersach, RAMB Chairman of the Board. "While there was a small decrease, which is probably due to the expiring tax credit, in pending sales from the previous month, the overall performance of the South Florida real estate market continues to reflect the existence of demand for local properties, especially from international buyers."

Pending sales of condominiums in Miami-Dade County continue to perform better than that of single-family homes. In June, condominium pending sales increased 76.4 percent compared to the previous year, from 3,332 to 5,876 and dropped only 0.64 percent, from 5,914, from the previous month. Pending sales of single-family homes in June increased 31 percent from the previous year, from 3,429 to 4,490, and decreased 1.15 percent from previous month, from 4,542.

Broward County Pending Sales
In Broward County pending home sales rose 28.7 percent from the previous year, from 5,826 to 8,031, and decreased 2.7 percent from the previous month, from 8,250.

Pending condominium sales in Broward also fared better than that of single-family homes. Broward County condominium sales in June increased 56 percent, from 2,839 to 4,429, compared to June 2009 and fell 2.3 percent, from 4,531, compared to the previous month.

Compared to June 2009, Broward pending sales of single-family homes rose 20.6 percent, from 2,987 to 3,602, and decreased 2.7 percent, from 3,719, compared to the previous month.

Strengthening Market
Home sales in South Florida have increased dramatically since August 2008 while inventory levels continue to drop and prices for single-family homes began increasing in April.

"We are encouraged by the activity in the local market and the strength of foreign buyers," said Oliver Ruiz, RAMB Residential President. "We've seen nearly two years of rising home sales and now increased sales prices. Additionally, there is heightened activity in the international and high-end sectors, resulting in multiple offers and over-bidding reminiscent of the real estate boom years."

Congress Extends Tax Credit Closing Deadline and Flood Insurance Program
The U.S. Senate passed two bills last evening previously passed by the House. Both bills still need President Obama's signature to become law, but that's expected to happen quickly.

The Senate passed HR 5623, which extends the mandatory closing date to qualify for the homebuyer tax credit. The contract deadline does not change - homebuyers must have a contract signed by April 30, 2010 (an exception for active duty military) - but the previous closing deadline of June 30, 2010, has been extended to Sept. 30, 2010. The National Association of Realtors estimates that the approved bill will benefit more than 14,000 deals in Florida.

A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. Increased pending sales are an indication of increased future sales.

"Copyright RAMB, Reprinted with permission"

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