Well this is encouraging and also unsettling. It seems like usual the fate of South Florida is driven by real estate. We are clearly in a boom and we have tons of new developments (condos mostly) coming to market. If we bust again, then what. Do we have tons of empty storefronts, or will we have a thriving economy for years to come?

Miami's housing market in July was driven by robust growth in the sales of homes, condos and town houses valued $200,000 to $399,000 and the over $600,000 range along with a significant increase in the new listings of properties over $400,000, according to the 30,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) system.

Growth in Miami Single-Family, Condo and Townhouse Sales

Sales of Miami single-family homes valued between $250,000 and $299,999 drove July's historic housing rally with 131 closed sales, an increase of 138.2 percent from the previous year. Moreover, there were 128 sales of $300,000 – $399,999 homes in Miami, an increase of 88.2 percent from July 2012.

Meanwhile, 154 condos and townhouses ranging from $200,000 to $249,999 were sold, up 60.4 percent from 2012. The 100 luxury condos and townhouses sold at $600,000 to under a $1,000,000 represented the largest sales increase with a surge of 63.9 percent compared with July 2012 figures.

Strong Growth in New Listings in the $400-599k Range

The Miami market has experienced robust sales activity for nearly three years, yielding strong appreciation consistently during the last two years. As a result, sellers who were waiting to recover equity have recognized that now is a great time to sell. Despite the uptick in new listings, supply remains insufficient to satisfy demand, particularly in the lower price points.

Condo and town houses make up 59 percent of all Miami property listings. Of the 2,838 condos and townhouses listed last month, the 344 valued between $400,000 and $599,999 increased 82 percent compared to July 2012. The second fastest growing group of newly listed townhouses and condos were the 338 valued $150,000 to $199,999, which saw a 63.3 percent growth from the previous year.

Of the 1,948 single family homes listed last month, there were 232 whose asking price ranged from $400,000 to $599,999, an increase of 81.3 percent from 2012. Notably, there were 169 new listings for single family homes over $1,000,000, up 53.6 percent from last July's 110.