MIAMI — Broward County total home sales, dollar volume and median prices increased year-over-year in January 2020, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
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.
“Broward County real estate had another strong month,” Broward MIAMI President Sharon R. Lindblade said. “Many metrics rose year-over-year, including $1 million-and-up transactions which increased by 24.5 percent for single-family homes.”
Broward Total Home Sales Increase 6%
Broward County total home sales increased 6% year-over-year, from 1,916 to 2,031. Broward single-family home sales rose 10.7%, from 882 to 976. Broward existing condos increased 2%, from 1,034 to 1,055.
A rise in mid-market and luxury ($1-million-and-up) transactions fueled the increase in total home sales.
Broward single-family homes priced between $400K to $600K registered a 22% home sales increase. Broward condos priced between $400K to $500K saw a 5.6% transactions increase.
In the luxury market, Broward single-family home sales jumped 24.5% to 61 luxury transactions. Broward luxury condos decreased 10% to 18 transactions last month.
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 decreased to 3.62% in January, down from 3.72% in December. One year ago, the commitment rate was 4.46%.
Single-family home dollar volume increased 20.3% from $398.6 million to $479.7 million. Condo dollar volume increased 11.2% from $229.7 million to $255.5 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 5.5%, from $355,000 to $374,450. Broward existing condominium median prices increased 6.3%, from $160,000 to $170,000.
Broward Distressed Sales Stay Low, Reflecting Healthy Market
Only 4.7% of all closed residential sales in Broward were distressed in January 2020, including REO (bank-owned properties) and short sales, compared 5.3% in January 2019.
Total Broward distressed sales decreased 6.9% year-over-year, from 102 to 95.
Short sales and REOs accounted for 1.5% and 3.2%, respectively, of total Broward sales in January 2020. Short sale transactions increased 25% year-over-year, from 24 to 30. REOs decreased 16.7%, from 78 to 65.
Nationally, distressed sales represented 2% of sales in January, unchanged from December 2019 and down from January 2019.
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 50 days, a 20.6% decrease from 63 days last year. The median number of days between the listing date and closing date for single-family homes was 97 days, a 5.8% decrease from 103 days.
The median time to contract for condos was 57 days, a 3.6% increase from 55 days. The median number of days between the listing date and closing date for condos was 101 days, a 7.4% increase from 94 days.
The median percent of original list price received for single-family homes was 95.5%. The median percent of original list price received for existing condominiums was 94.6%.
National and State Statistics
Nationally, total existing-home sales transactions decreased 1.3% from December to a seasonally-adjusted annual rate of 5.46 million in January. However, for the second straight month, overall sales substantially increased year-over-year, up 9.6% from a year ago (4.98 million in January 2019).
Statewide closed sales of existing single-family homes totaled 18,298 last month, up 17.9% from January 2019, according to Florida Realtors. Florida’s condo-townhouse market totaled 7,714, up 14.5% 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 January was $266,300, up 6.8% from January 2019 ($249,400), as prices increased in every region. December’s price increase marks 95 straight months of year-over-year gains.
Statewide median sales prices for both single-family homes and condo-townhouse properties in January rose year-over-year for 97 consecutive months. The statewide median sales price for single-family existing homes was $265,000, up 6% 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 $200,000, up 9.6% 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 38.2% of January 2020 total closed sales, compared to 40.9% last year. Broward cash transactions are almost double the national figure (21%).
Condominiums comprise a large portion of Broward’s cash purchases as 53.6% of condo closings were made in cash in January compared to 21.5% of single-family home sales.
Seller’s Market for Broward Real Estate
Months supply of inventory for single-family homes decreased 20.8% to 3.8 months, which indicates a seller’s market. Existing condominiums decreased 6.5%, from 6.2 months to 5.8 months, 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 January decreased 12.1% year-over-year, from 14,997 to 13,182. Inventory of single-family homes decreased 17.4% in January from 6,162 active listings last year to 5,087 in January 2020. Condominium inventory decreased 8.4% to 8,095 from 8,835 listings during the same period in 2019.
New listings of Broward single-family homes decreased 11.3% from 2,100 to 1,863. New listings of condominiums decreased 7.7%, from 2,612 to 2,410.
Nationally, total housing inventory at the end of January totaled 1.42 million units, up 2.2% from December, but down 10.7% from one year ago (1.59 million). The housing inventory level for January is the lowest level since 1999. Unsold inventory sits at a 3.1-month supply at the current sales pace, up from the 3.0-month figure recorded in December and down from the 3.8-month figure recorded in January 2019.
To access January 2020 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