From the desk of Dottie Herman:
Douglas Elliman has just released the third quarter 2013 "Elliman Reports" for Miami, Boca Raton, Fort Lauderdale and Palm Beach; the leading resource on the state of these South Florida markets. As always, our market reports are produced in conjunction with Miller Samuel to provide you and your clients with the most comprehensive and neutral market insight available.
Miami housing prices pressed to five-year highs and sales reached their second most quarterly total since 2006. Over the past three years, the market share of distressed sales has fallen by half, something unimaginable a few years ago as the market continues to recover. Despite the rise in non-distressed sales, cash remains king in nearly two thirds of all sales. Inventory continued to fall and properties sold at their fastest pace in more than seven years. Based on the current key drivers of an improving regional economy and the international consumer, we anticipate an active market over the coming quarters.
The Boca Raton housing market saw some gains in overall inventory although supply fell at the top of the market. The pace of sales activity remained brisk, especially within the condo market. The time it took to sell a property fell sharply as low inventory continued to keep the pressure on the market. More buyers used mortgages than at any other time in the past several years, but cash purchases still dominated activity. We look forward to a continuation of these conditions in the coming months.
Sales volume and prices for the Fort Lauderdale housing market jumped above last year's levels. Inventory trends were mixed with a drop in condo listings and an increase in single family listings. The pace of the market remained fast as listings were sold more quickly than last year. Cash remains the favorite choice of buyers, but we are seeing more purchases made with mortgages. We anticipate an active market for the final quarter of the year.
Housing prices in thePalm Beach luxury market showed more strength than the overall market. Sales activity was up across all property types with significant volume gains in the South End. Lack of inventory continues to challenge the single family and luxury markets and marketing times remained much faster at the top of the market than in the overall market. Unless we see significantly more inventory enter the market, we expect similar conditions over the next several quarters.
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