MIAMI — Broward County median sale prices and new pending sales increased for all properties in August 2019, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Broward existing condo median prices increased 6.7%, from $165,500 to $176,540. Broward single-family home sales increased 2.7%, from $360,000 to $369,750. New pending sales, which are properties that went under contract in the month, increased 2.2% year-over-year for condos to 1,652 and 2.7% for single-family homes to 1,537. Pending sales are a good indicator of future closed sales.
“While total sales decreased year-over-year in August, Broward real estate remains on a strong overall trend line,” said Broward-MIAMI President Jonathan Keith, a Fort Lauderdale broker. “Before August, Broward single-family home sales had increased in four of the last five months. Year to date, Broward single-family home sales have increased 0.3% compared to last year.”
Total Home Sales Decrease in August
Broward total home sales decreased 3.9% year-over-year, from 3,011 to 2,895. Broward single-family home sales declined 6.2%, from 1,531 to 1,436. Broward condos decreased 1.4%, from 1,480 to 1,459.
Lack of inventory in lower price points contributed to the decline in transactions. With consumer confidence rising, unemployment low, job creation high and increased migration to Florida, Broward real estate should enjoy steady growth.
Before August, Broward single-family home sales had increased in four of the last five months. Year to date, Broward single-family home sales have increased 0.3% compared to last year.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 3.62% in August, down from 3.77% in July. The average commitment rate across all of 2018 was 4.54%.
Single-family home dollar volume decreased 5.7% from $688.8 million to $649.2 million. Condo dollar volume decreased 3.8% percent from $325.8 million to $313.3 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 Distressed Sales Continue to Drop, Reflecting
Only 3.4% of all closed residential sales in Broward were distressed in August 2019, including REO (bank-owned properties) and short sales, compared 4.5% in August 2018.
Total Broward distressed sales decreased 29.2% year-over-year, from 137 to 97.
Short sales and REOs accounted for 0.7% and 2.7%, respectively, of total Broward sales in Broward 2019. Short sale transactions decreased 42.9% year-over-year, from 35 to 20. REOs decreased 24.5%, from 102 to 77.
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 19.4% increase from 36 days last year. The median number of days between the listing date and closing date for single-family homes was 84 days, a 7.7% increase from 78 days.
The median time to contract for condos was 51 days, a 1.9% increase from 52 days. The median number of days between the listing date and closing date for condos was 89 days, a 4.3% increase from 93 days.
The median percent of original list price received for single-family homes was 96.0 percent. The median percent of original list price received for existing condominiums was 94.9 percent.
National and State Statistics
Nationally, total existing-home sales rose 1.3% from July to a seasonally adjusted annual rate of 5.49 million in August. Overall sales are up 2.6% from a year ago (5.35 million in August 2018).
Statewide closed sales of existing single-family homes totaled 27,107 last month, up 3.2% from August 2018, according to Florida Realtors. Florida’s condo-townhouse market totaled 10,062, down 2.9% compared to a year ago.
The national median existing-home price for all housing types in August was $278,200, up 4.7% from August 2018 ($265,600). August’s price increase marks the 90th straight month of year-over-year gains.
In August, statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year for 92 months in a row. The statewide median sales price for single-family existing homes was $265,000, up 4.2% 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 $190,000, up 2.7% 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
Broward cash transactions comprised 31.9% of August 2019 total closed sales, compared to 35.1% last year. Broward cash transactions are almost double the national figure (19%).
Condominiums comprise a large portion of Broward’s cash purchases as 47.2% of condo closings were made in cash in August compared to 16.5% of single-family home sales.
Seller’s Market for Broward Real Estate
Months supply of inventory for single-family homes decreased 4.5% to 4.2 months, which indicates a seller’s market. Existing condominiums have a 5.5-month supply, which also indicates a seller’s market. A balanced market between buyers and sellers offers between six and nine months of supply.
Total active listings at the end of August decreased 1.8% year-over-year, from 13,237 to 13,001. Inventory of single-family homes decreased 3.0% in August from 5,604 active listings last year to 5,437 in August 2019. Condominium inventory decreased 0.9% to 7,564 from 7,633 listings during the same period in 2018.
New listings of Broward single-family homes decreased 12.8% from 1,971 to 1,718. New listings of condominiums decreased 13.2%, from 2,101 to 1,824.
Nationally, total housing inventory at the end of August decreased to 1.86 million, down from 1.90 million existing-homes available for sale in July and marking a 2.6% decrease from 1.91 million one year ago. Unsold inventory is at a 4.1-month supply at the current sales pace, down from 4.2 months in July and from the 4.3-month figure recorded in August 2018.
To access August 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, Broward-MIAMI, 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 215 international organizations worldwide. MIAMI’s official website is www.MiamiRealtors.com