MIAMI — Broward County single-family home sales, median prices and dollar volume increased year-over-year in November 2019, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Broward single-family home sales increased 2.2% year-over-year, from 1,149 to 1,174. Broward County continues in a seller’s market (inventory below 6 months of supply) with months of supply trending downward, a sign of the high demand for Broward real estate.
“New federal tax law limiting deductions on state and local taxes and low mortgage rates will continue boosting home sales,” said Broward-MIAMI President Jonathan Keith, a Fort Lauderdale broker.
Broward Single-Family Home Sales Increase
Broward single-family home sales increased 2.2% year-over-year, from 1,149 to 1,174. Broward existing condo sales decreased 11.8%, from 1,311 to 1,156.
Broward total home sales decreased 5.3% year-over-year, from 2,460 to 2,330. 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.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased to 3.70% in November, up from 3.69% in October. The average commitment rate across all of 2018 was 4.54%.
Single-family home dollar volume increased 5.4% from $510.4 million to $538.1 million. Condo dollar volume decreased 13.6% from $288.8 million to $249.5 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 Median Prices Continue Rising
Broward single-family home median prices increased 4.2%, from $360,000 to $375,000. Broward existing condominium median prices increased 2.4%, from $166,000 to $170,000.
Broward Distressed Sales Stay Low, Reflecting Healthy Market
Only 4.3% of all closed residential sales in Broward were distressed in November 2019, including REO (bank-owned properties) and short sales, compared 4.3% in November 2018.
Total Broward distressed sales decreased 3.8% year-over-year, from 105 to 101.
Short sales and REOs accounted for 1.0% and 3.3%, respectively, of total Broward sales in November 2019. Short sale transactions decreased 22.6% year-over-year, from 31 to 24. REOs increased 4.1%, from 74 to 77.
Nationally, distressed sales represented 2% of sales in November, unchanged from both October 2019 and November 2018.
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 46 days, a 12.2% increase from 41 days last year. The median number of days between the listing date and closing date for single-family homes was 88 days, a 3.5% increase from 85 days.
The median time to contract for condos was 51 days, an 8.5% increase from 47 days. The median number of days between the listing date and closing date for condos was 94 days, a 9.3% increase from 86 days.
The median percent of original list price received for single-family homes was 95.7%. The median percent of original list price received for existing condominiums was 94.9%.
National and State Statistics
Nationally, total existing-home sales transactions decreased 1.7% from October to a seasonally-adjusted annual rate of 5.35 million in November. However, sales are up 2.7% from a year ago (5.21 million in November 2018).
Statewide closed sales of existing single-family homes totaled 21,842 last month, up 6.1% from November 2018, according to Florida Realtors. Florida’s condo-townhouse market totaled 8,101, down 6.3% from the level a year ago. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
The national median existing-home price for all housing types in November was $271,300, up 5.4% from November 2018 ($257,400), as prices rose in all regions. November’s price increase marks 93 straight months of year-over-year gains.
Statewide median sales prices for both single-family homes and condo-townhouse properties in November rose year-over-year for 95 consecutive months. The statewide median sales price for single-family existing homes was $265,000, up 3.9% from the previous year. Last month’s statewide median price for condo-townhouse units was $195,000, up 5.4% 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 35.3% of November 2019 total closed sales, compared to 38.5% last year. Broward cash transactions are almost double the national figure (20%).
Condominiums comprise a large portion of Broward’s cash purchases as 52.3% of condo closings were made in cash in November compared to 18.5% of single-family home sales.
Seller’s Market for Broward Real Estate
Months supply of inventory for single-family homes decreased 13% to 4.0 months, which indicates a seller’s market. Existing condominiums have a 5.8-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 November decreased 7.1% year-over-year, from 14,356 to 13,331. Inventory of single-family homes decreased 11.8% in November from 6,039 active listings last year to 5,329 in November 2019. Condominium inventory decreased 3.8% to 8,002 from 8,317 listings during the same period in 2018.
New listings of Broward single-family homes decreased 11.3% from 1,671 to 1,482. New listings of condominiums decreased 3.4%, from 1,990 to 1,922.
Nationally, total housing inventory at the end of November totaled 1.64 million units, down approximately 7.3% from October and 5.7% from one year ago (1.74 million). Unsold inventory sits at a 3.7-month supply at the current sales pace, down from 3.9 months in October and from the 4.0-month figure recorded in November 2018. Unsold inventory totals have declined for five consecutive months, constraining home sales.
To access November 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 52,000 total 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 221 international organizations worldwide. MIAMI’s official website is www.MiamiRealtors.com