Wednesday, April 7, 2010

March Pending Home Sales Surge 72% in Miami; Foreigners Account for 30% of Sales Activity

Miami Herald -- "Pending home sales in Miami-Dade and Broward counties continued to rise in March as Realtors said both local and international buyers are being lured by cheap properties and bargain-basement interest rates. In Miami-Dade, the number of people who agreed to purchase a home in March was up 6.4 percent versus February at 9,751 homes and condos. Compared to year-ago levels, the number of pending home sales was up 71.7 percent, the Realtor Association of Greater Miami and the Beaches reported Monday. Combined with home sales that inched higher in February, the data paints a picture of a market on the mend.

The Realtor Association of Greater Miami and the Beaches said about 30 percent of the activity can be attributed to foreign buyers. While Europeans seem to be making most of their purchases along the beaches, Latin American buyers -- particularly Venezuelans and Colombians -- tend to look for single-family homes in gated communities."


MP: A clear example of how markets work - falling home prices eventually bring buyers (both domestic and foreign) back into the market, home sales increase, and real estate markets like Miami recover. The best part is that it happens automatically - no legislation or state intervention required - rather, it's part of the natural market process and "spontaneous order."

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