MIAMI — Broward County total home sales, single-family home transactions, condo sales, median sale price and total sales volume all increased year-over-year in May, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
“More people around the United States are learning about our incredible live-work-and-play lifestyle,” said Broward-MIAMI President Jonathan Keith, a Fort Lauderdale broker. “New tax law changes impacting buyers from the Northeast and low mortgage rates contributed to our across-the-board sales increases last month.”
Total Home Sales Increase 5.9 Percent in May
Total Broward County sales increased 5.9% year-over-year in May 2019, from 3,185 to 3,376. Broward single-family home sales increased 9.4%, from 1,518 to 1,661. Broward condo sales increased 2.9%, from 1,667 to 1,715.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 4.07% in May, down from 4.14% in April. The average commitment rate across all of 2018 was 4.54%. Mortgage interest rates have been declining sharply since late last year.
Total sales volume increased from $1.1 billion in May 2018 to $1.2 billion in May 2019. Single-family home dollar volume increased 11.7% from $693.5 million to $774.9 million. Condo dollar volume increased 1.5% percent from $385.6 million to $391.2 million.
Lack of access to mortgage loans continues to inhibit further growth of the existing condominium market. Of the 9,307 condominium buildings in Miami-Dade and Broward counties, only 12 are approved for Federal Housing Administration loans, down from 29 last year, according to Florida Department of Business and Professional Regulation and FHA.
Broward Single-Family Luxury Home Sales Increase in May
Broward luxury ($1-million-and-up) home sales increased 6.9% percent year-over-year in May to 77 transactions.
Broward condo luxury home sales decreased 15.4% to 22 transactions.
Broward Median Prices Rise for Single-Family Homes, Condos
Broward County single-family home prices increased 4.2% year-over-year, from $355,000 to $370,000. Condo median sale prices increased 7.1% from $168,000 to $180,000.
Broward Distressed Sales Continue to Drop, Reflecting Healthy Market
Only 3.3% of all closed residential sales in Broward were distressed in May 2019, including REO (bank-owned properties) and short sales, compared 4.1% in May 2018.
Total Broward distressed sales decreased 12.3% year-over-year, from 130 to 114.
Short sales and REOs accounted for 0.8% and 2.5%, respectively, of total Broward sales in May 2019. Short sale transactions decreased 30.8% year-over-year, from 39 to 27. REOs decreased 4.4%, from 91 to 87.
Nationally, distressed sales represented 2% of sales in May, down from 3% in April and from 3% in May 2018. Less than 1% of May 2019 sales were short sales.
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 26.5% increase from 34 days last year. The median number of days between the listing date and closing date for single-family homes was 84 days, a 9.1% increase from 77 days.
The median time to contract for condos was 59 days, a 31.1% increase from 45 days. The median number of days between the listing date and closing date for condos was 99 days, a 13.8% increase from 87 days.
The median percent of original list price received for single-family homes was 96 percent. The median percent of original list price received for existing condominiums was 94.3 percent.
National and State Statistics
Nationally, total existing-home sales jumped 2.5% from April to a seasonally adjusted annual rate of 5.34 million in May. Total sales, however, are down 1.1% from a year ago (5.40 million in May 2018).
Statewide closed sales of existing single-family homes totaled 30,742 last month, up 9.6% over May 2018, according to Florida Realtors. Looking at Florida’s condo-townhouse market in May, statewide closed sales totaled 12,217, up 1.6% compared to a year ago.
The national median existing-home price for all housing types in May was $277,700, up 4.8% from May 2018 ($265,100). May’s price increase marks the 87th straight month of year-over-year gains.
In May, statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year for the 89th consecutive month. The statewide median sales price for single-family existing homes was $266,000, up 4.3% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $195,000, up 3.7% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Broward Cash Buyers Represent Almost Double the National Figure
Broward cash transactions comprised 33.1% of May 2019 total closed sales, compared to 36.9% last year. Broward cash transactions are almost double the national figure (19%).
Condominiums comprise a large portion of Broward’s cash purchases as 48.2% of condo closings were made in cash in May compared to 17.5% of single-family home sales.
Seller’s Market in Broward
Months supply of inventory for single-family homes increased 7.3% to 4.4 months, which indicates a seller’s market. Existing condominiums have a 5.9-month supply, which also indicates a buyer’s market. A balanced market between buyers and sellers offers between six and nine months of supply.
Although still in a seller’s market for single-family homes, the increase is positive, as high demand and insufficient supply were resulting in a housing shortage and negatively impacting sales.
Total active listings at the end of May increased 7.0% year-over-year, from 13,217 to 14,145. Inventory of single-family homes increased 9.7% in May from 5,317 active listings last year to 5,835 in May 2019. Condominium inventory increased 5.2% to 8,310 from 7,900 listings during the same period in 2018.
New listings of Broward single-family homes decreased 7.9% from 2,260 to 2,081. New listings of condominiums decreased 9.9%, from 2,236 to 2,015.
Nationally, total housing inventory at the May increased to 1.92 million, up from 1.83 million existing homes available for sale in April and a 2.7% increase from 1.87 million a year ago. Unsold inventory is at a 4.3-month supply at the current sales pace, up from both the 4.2 month supply in April and from 4.2 months in May 2018.
To access May 2019 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.
About the MIAMI Association of Realtors
The MIAMI Association of Realtors was chartered by the National Association of Realtors in 1920 and is celebrating 99 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of six organizations, the Residential Association, the Realtors Commercial Alliance, the Broward-MIAMI Association of Realtors, the Jupiter Tequesta Hobe Sound (JTHS-MIAMI) Council, the Young Professionals Network (YPN) Council and the award-winning International Council, it represents 47,000 real estate professionals in all aspects of real estate sales, marketing, and brokerage. It is the largest local Realtor association in the U.S. and has official partnerships with 214 international organizations worldwide. MIAMI’s official website is www.MiamiRealtors.com