MIAMI—Miami's real estate market is starting the year the same way it finished 2012: strong. Rising sales and prices amid limited supply remains the storyline here.

According to the Miami Association of Realtors, Miami-Dade County residential sales increased 7.5% in January compared to a year earlier. The sales of existing single-family homes in Miami-Dade increased 19.1%, from 691 to 823. Sales of existing condominiums increased 0.3 percent, from 1,121 to 1,124, year-over-year.

“We expect prices to continue to rise as a result of the significant demand that currently exists for both sales and rentals,” says 2013 Chairman of the Board of the Miami Association of Realtors Natascha Tello. “While more new listings are coming on the market, there still is insufficient supply to satisfy consumer demand and significant fewer new listings in the lower price ranges.”