MIAMI — Broward County single-family home sales and median prices for all properties increased year-over-year in 2019, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Broward registered 15,979 single-family home sales in 2019, up 2.2% from 15,639 in 2018. It was the county’s highest total since it had 17,170 single-family home transactions in 2016.
“Broward single-family home priced between $400,000 to $600,000 saw a double-digit rise in transactions in 2019. Single-family luxury home sales also surged last year,” Broward MIAMI President Sharon R. Lindblade said. “The rise of both metrics displays the breadth of Broward real estate and how the region is becoming an attractor for consumers in tax-burdened states.”
Broward Mid-Market, Luxury Sales Fuel Rise in Single-Family Home Transactions
Broward County single-family homes priced between $400,000 to $600,000 saw a 15.5% increase year-over-year, jumping to 4,194 transactions.
Broward luxury single-family home sales ($1-milion-and-up) increased 5.8% year-over-year in 2019 to 745 transactions.
There is strong pent-up demand for Broward luxury single-family homes. Luxury sellers are becoming more realistic with their asking prices. Federal tax reform is having an impact as more Northeastern buyers are opting to purchase in Broward to escape the higher taxes they could face in states like New York and New Jersey.
Federal tax reform, which was signed into law Dec. 22, 2017, sets a deductions cap for income, sales and property taxes at $10,000. The new cap is leading more residents of states with high property values and state income tax to purchase properties in states such as Florida, which has no state income tax and a pro-business tax structure.
Total Broward, Existing Condominium Transactions Decline
Total Broward home sales declined a negligible 0.6% year-over-year, from 32,807 to 32,609.
Broward’s condo market posted 16,630 transactions, down 3.1% from 17,168 in 2018. Lack of supply in certain price range and neighborhoods impacted sales.
Nevertheless, the 16,630 transactions are in line with the last five years: 2018 (17,168 transactions); 2017 (16,310); 2016 (16,721); 2015 (16,888); and 2014 (16,363).
Broward Median Prices Rise in 2019
Broward existing single-family homes finished 2019 with a median sales price of $365,000, up 3.3% from $353,500 the previous year. The Broward median price for existing condominiums in 2019 was $171,000, an increase of 3.6% from $165,000 in 2018.
Broward single-family dollar volume increased 5.5%, from $7 billion to $7.4 billion. Broward condo dollar volume decreased 4.4%, from $3.9 billion to $3.7 billion.
Hottest Broward Neighborhoods at Year-End 2019
Months’ supply of inventory, which is an important indicator of consumer demand and market performance, reflects limited supply in many neighborhoods and price ranges. As a result, lack of supply is also impacting property sales, particularly for single-family homes.
Top Broward neighborhoods with the lowest months of supply of inventory with significant closed sales activity at year-end 2019:
- Cooper City, a south Broward city located south of Davie, had 1.8 months supply
- Coral Springs, a north Broward city located south of Parkland, had 2.1 months supply
- North Lauderdale, a north Broward community east of Tamarac, had 2.1 months supply
- Pembroke Pines, a south Broward city located just north of Miramar, had 2.3 months supply
- West Park, a south Broward community east of Miramar, had 2.3 months supply
- Cooper City, a south Broward city located south of Davie, had 1.7 months supply
- Parkland, a north Broward community on the Palm Beach-Broward line, had 2.4 months supply
- Tamarac, a north Broward city located west of North Lauderdale, had 2.6 months supply
- Oakland Park, a north Broward city located north of downtown Fort Lauderdale, had 2.6 months supply
- Davie, a city located east of Weston, had 2.6 months supply
Broward Real Estate Selling Close to List Price
The average percent of original list price received for single-family homes in 2019 was 95.8% in 2019, a 0.2% decrease from a year earlier. The median number of days to contract for Broward single-family homes increased 23.1% to 48 days in 2019 from 39 days in 2018.
The median number of days to contract for condominiums sold in 2019 was 54 days, up 10.2% from 49 days in 2018. The average percent of original list price received was 94.4%, a 0.1% year-over-year decrease.
State Year-End Statistics
Statewide closed sales of existing single-family homes totaled 294,120 at the end of 2019, up 5.9% compared to the 2018 figure, according to Florida Realtors. The statewide median sales price for single-family existing homes at year’s end was $264,000, up 3.7% from the previous year.
Looking at Florida’s year-to-year comparison for sales of condo-townhouses, a total of 115,659 units sold statewide in 2019, down slightly (0.8%) from 2018. The statewide median price for condo-townhouse properties at the end of the year was $192,000, up 3.8% from year-end 2018.
The interest rate for a 30-year fixed-rate mortgage averaged 3.94% for 2019, down significantly from the previous year’s average of 4.54%, according to Freddie Mac.
Broward Cash Buyers Represent Nearly Double the National Figure
In 2019, cash deals represented 35% of Broward’s total closed sales, which is a decrease from 37.9% in 2018. About 20% of all U.S. housing sales are made in cash, according to NAR.
Broward’s high percentage of cash sales reflects South Florida’s ability to attract a diverse number of international home buyers, who tend to purchase properties in all cash.
Condominiums comprise a large portion Broward’s cash purchases as 51.1% of condo closings were made in cash in 2019 compared to 18.3% of single-family home sales.
Distressed Property Transactions Continue to Decline in Broward
About 3.9% of all closed residential sales in Broward were distressed in 2019, including REO (bank-owned properties) and short sales, compared to 4.5% in 2018.
Short sales and REOs accounted for 0.9% and 2.9%, respectively, of Broward sales in 2019. Short sale transactions dropped 24.3% year-over-year while REOs decreased 12.4%. A decline in short sales points to more homeowners with increased equity, which should result in increased market activity.
Seller’s Market for Broward Single-Family Homes, Condos
Inventory of single-family homes decreased 16.3% in 2019 from 5,762 active listings in 2018 to 4,824 in 2019. Condominium inventory decreased 8.6% to 7,434 in 2019 from 8,130 listings in 2018.
At the end of 2019, inventory for Broward single-family homes stood at a 3.6-month supply, a 18.2% decrease from 4.4 months in the previous year. Inventory for Broward existing condominiums at the end of 2019 stood at 5.4 months, down 5.3% from 5.7 in 2018. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
Total active listings at the end of 2019 decreased 11.8% year-over-year, from 13,892 to 12,258. Active listings remain about 60 % below 2008 levels when sales bottomed.
New listings of Broward single-family homes at year-end 2019 decreased 5.3% from 23,173 to 21,955. New listings of condominiums decreased 6%, from 25,883 to 24,339.
4Q 2019: Broward Single-Family Home, Condo Sales Rise
Broward closed sales of existing single-family homes totaled 3,839 in the fourth quarter of 2019, up 6.1% compared to the previous year. Broward existing condo sales totaled 3,820 in 4Q 2019, down 4.5% year-over-year.
Statewide closed sales of existing single-family homes totaled 70,839 in the fourth quarter of 2019, up 11.6% compared to the year-ago figure, according to Florida Realtors. Looking at Florida’s year-to-year comparison for sales of condo-townhouses, a total of 26,932 units sold statewide in 4Q 2019, up 3.3% compared to the same period a year earlier.
Median sale prices for Miami single-family homes increased 4.2%, from $355,000 to $370,000, in 4Q 2019. Condo median prices increased 4.9% from $230,500 to $245,000.
The statewide median sales price for existing single-family homes for 4Q 2019 was $265,900, up 4.3% from 4Q 2018. New pending sales for existing single-family homes for the quarter rose 13.2% compared to a year ago while pending inventory was up 8.7% from 4Q 2018. The statewide median price for condo-townhouse properties for the quarter was $195,000, up 5.9% over the previous year. New pending sales for condo-townhouses for 4Q 2019 increased 6.8% compared to a year ago while pending inventory was up 4% from the same quarter the previous year.
The national median existing single-family home price in the fourth quarter was $274,900, up 6.6% from the fourth quarter of 2018 ($258,000).
New listings of Broward single-family homes for sale in 4Q 2019 decreased 6.8% compared to the same quarter the previous year, from 4,911 to 4,579. New listings for existing condos in 4Q 2019 decreased 8.6% from 8,130 to 7,434.
To access Year-end 2019, 4Q 2019 and Local Residential Market Metrics Year-end 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 100 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 222 international organizations worldwide. MIAMI’s official website is www.MiamiRealtors.com