The Miami real estate market has been thriving this year, and rising demand has helped fuel home sales.
According to the Miami Association of Realtors, pending sales of single-family homes and condominiums increased 67 percent in October on a year-over-year basis from 2,488 to 4,172. On a month-to-month basis, pending sales were up 18 percent.
"The Miami real estate market is poised for another record year, that would surpass the all-time sales record set in 2011," said Martha Pomares, 2012 chairman of the board of the MIAMI Association of Realtors. "Strong demand persists despite the shortage of housing inventory, and listings are increasingly selling at a more rapid pace, driving significant price appreciation."
Increasing demand has benefited sellers, as they have been able to sell their homes closer to their asking price. Those who have sold single-family homes were able to get 95 percent of their asking price, while condominium sellers were able to receive 97.1 percent.
The surge in housing demand can be partially attributed to mortgage rates hovering near record lows in the past few months. According to Freddie Mac, both 15- and 30-year fixed-rate mortgages averaged near all-time lows in the week ending December 6, which could help keep demand high.