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Broward Existing Condo Sales Continue Upward Trend, Surge 20 Percent in October

by | Nov 21, 2018
Broward County existing condominium sales increased for the seventh consecutive month in October, this time rising 20 percent year-over-year, as total Broward County home sales surged 15.1 percent year-over-year, according to a new report by the MIAMI Association of REALTORS® (MIAMI) and the Multiple Listing Service (MLS) system.

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MIAMI — Broward County existing condominium sales increased for the seventh consecutive month in October, this time rising 20 percent year-over-year, as total Broward County home sales surged 15.1 percent year-over-year, according to a new report by the MIAMI Association of REALTORS® (MIAMI) and the Multiple Listing Service (MLS) system.

Broward Existing Condo Sales Continue Upward Trend, Surge 20 Percent in October

Broward single-family homes (10.1 percent year-over-year increase) also had a strong increase in October as median prices and dollar volume increased for all properties.

“With available land scarce and prices rising in Miami, more home buyers are purchasing in our beautiful community of Broward County,” said MIAMI Broward Council President Patricia C. Anglero, a Fort Lauderdale broker. “With low months supply of inventory, Broward is in a seller’s market. Broward’s existing condo market continues to see heavy demand and low supply as nearly every condo price range posted increased sales in October 2018.”

Seven Consecutive Months of Sale Increases for Broward Condo Market
Broward existing condo sales posted a seventh consecutive month of positive gains, rising 20 percent (1,230 to 1,476).

Every price range except for less than $50,000 saw year-over-year sales gains. The large segment of growth for Broward condos was the $200,000 to $400,000 sector with 436 sales.

Total Broward Home Sales Increase 15.1 Percent
Total Broward home sales increased 15.1 percent year-over-year in October 2018, from 2,431 to 2,798.

Broward single-family home sales rose 10.1 percent largely because of the success of the $400,000 to $600,000 price sector. The price range had 32.6 percent more sales in October 2018 than October 2017.

Broward single-family home luxury sales also had a robust month, increasing 80.6 percent year-over-year to 65 transactions.

Sales Dollar Volume Jumps 23.3 Percent to $918.5 Million 
Total sales volume increased to $918.5 million from $744.9 million in October 2018. Existing condo sales volume increased from $240.1 million to $328.1 million (an increase of 36.6 percent). Single-family home total dollar volume rose 17 percent, from $504.8 million to $590.4 million.

Broward Median Prices Rise for Condos and Single-Family Homes 
Broward County existing condo prices rose 1.3 percent, from $155,000 to $157,000 in October. Single-family home prices increased 6 percent in October 2018, from $335,000 to $355,000.

Low mortgage rates make purchasing a home more affordable. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased to 4.83 percent in October from 4.63 percent in September. The average commitment rate for all of 2017 was 3.99 percent.

Broward Distressed Sales Continue to Drop, Reflecting Healthy Market 
Only 4.3 percent of all closed residential sales in Broward were distressed in October 2018, including REO (bank-owned properties) and short sales, compared 6.1 percent in October 2017.

Total Broward distressed sales decreased 18.9 percent year-over-year, from 148 in October 2017 to 120 in October 2018.

Short sales and REOs accounted for 1.2 and 3.1 percent, respectively, of total Broward sales in October 2018. Short sale transactions decreased 8.1 percent year-over-year while stayed the same at 33 while REOs decreased 22.5 percent.

Nationally, distressed sales accounted for 3 percent of sales (lowest since NAR began tracking in October 2008), down from 4 percent a year ago.

Broward Real Estate Selling Close to List Price 
The median number of days between listing and contract dates for Broward single-family home sales was 43 days, a 2.4 percent increase from 42 days last year. The median number of days between the listing date and closing date for single-family homes was 83 days, a 7.8 percent decrease from 90 days.

The median time to contract for condos was 47 days, a 19 percent decrease from 58 days last year. The median number of days between the listing date and closing date for single-family homes was 87 days, a 16.3 percent decrease from 104 days.

The median percent of original list price received for single-family homes was 95.7 percent. The median percent of original list price received for existing condominiums was 94.7 percent.

National and State Statistics 
Nationally, total existing-home sales increased 1.4 percent from September to a seasonally adjusted rate of 5.22 million in October. Sales are now down 5.1 percent from a year ago (5.5 million in October 2017).

Statewide closed sales of existing single-family homes totaled 22,272 last month, up 8.5 percent compared to October 2017, according to Florida Realtors. Statewide closed condo sales totaled 9,270 last month, up 14.1 percent compared to a year ago.

The national median existing-home price for all housing types in October was $255,400, up 3.8 percent from October 2017 ($246,000). October’s price increase marks the 80th straight month of year-over-year gains.

October marked 82 consecutive months (more than six and a half years) that statewide median sales prices for both single-family homes and condo-townhouse properties increased year-over-year. The statewide median sales price for single-family existing homes was $253,853, up 7.6 percent from the previous year, according to Florida Realtors. The statewide median price for condo-townhouse units in October was $180,000, up 5.9 percent over the year-ago figure.

Broward Cash Buyers Represent Almost Double the National Figure 
Broward cash transactions comprised 38.6 percent of October 2018 total closed sales, compared to 36.8 percent last year. Broward cash transactions are almost double the national figure (23 percent).

Condominiums comprise a large portion of Broward’s cash purchases as 53.5 percent of condo closings were made in cash in October compared to 21.9 percent of single-family home sales.

Seller’s Market for Broward Real Estate 
Inventory of single-family homes increased 15.6 percent in October from 5,109 active listings last year to 5,904 in October 2018. Condominium inventory increased 4.3 percent to 8,027 from 7,699 listings during the same period in 2017.

Monthly supply of inventory for single-family homes increased 18.4 percent to 4.5 months, which indicates a seller’s market. Existing condominiums have a 5.6-month supply, which also indicates a seller’s market. A balanced market between buyers and sellers offers between six and nine months supply of inventory.

Total active listings at the end of October increased 8.8 percent year-over-year, from 12,808 to 13,931.

New listings of Broward single-family homes increased 12.6 percent to 2,010 from 1,785. New listings of condominiums increased 8.3 percent, from 2,168 to 2,347.

Nationally, total housing inventory at the end of October decreased from 1.88 million in September to 1.85 million existing homes available for sale, but that represents an increase from 1.80 million a year ago. Unsold inventory is at a 4.3-month supply at the current sales pace, down from 4.4 last month and up from 3.9 months a year ago.

To access October 2018 Broward County Statistical Reports, visit http://www.SFMarketIntel.com

Note: Statistics in this news release may vary depending on reporting dates. MIAMI reports exact statistics directly from its MLS system.

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