MIAMI — Broward County total home sales, dollar volume and median prices increased year-over-year in February 2020, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
“Broward real estate posted another strong month in February, consistent with recent market trends,” Broward MIAMI President Sharon R. Lindblade said. “While the effects of COVID-19 on the economy and real estate market remain uncertain, we are reassured by the strength and vitality of the South Florida real estate market and economy. The region is on solid financial footing, mortgage rates are at historic lows and supply of inventory has been decreasing for months.”
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 Total Home Sales Increase 5.3%
Broward County total home sales increased 5.3% year-over-year, from 2,051 to 2,159. Broward single-family home sales rose 7%, from 938 to 1,004. Broward existing condos increased 3.8%, from 1,113 to 1,155.
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 30.6% home sales increase. Broward condos priced between $400K to $500K saw a 6.8% transactions increase.
In the luxury market, Broward single-family home sales jumped 43.9% to 59 luxury transactions. Broward luxury condos increased 100% to 18 transactions last month.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 3.47% in February, down from 3.62% in January. The average commitment rate across all of 2019 was 3.94%.
Single-family home dollar volume increased 29% from $423.4 million to $546.3 million. Condo dollar volume increased 18.3% from $234.5 million to $277.3 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 Median Prices Continue Rising
Broward single-family home median prices increased 10%, from $350,000 to $385,000. Broward existing condominium median prices increased 12.8%, from $160,000 to $180,500.
Broward Distressed Sales Stay Low, Reflecting Healthy Market
Only 4.2% of all closed residential sales in Broward were distressed in February 2020, including REO (bank-owned properties) and short sales, compared 4.7% in February 2019.
Total Broward distressed sales decreased 6.3% year-over-year, from 96 to 90.
Short sales and REOs accounted for 1.2% and 3.0%, respectively, of total Broward sales in February 2020. Short sale transactions increased 8.7% year-over-year, from 23 to 25. REOs decreased 10.9%, from 73 to 65.
Nationally, distressed sales represented 2% of sales in February, unchanged from January and down from February 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 56 days, the same as this point last year. The median number of days between the listing date and closing date for single-family homes was 96 days, a 1% decrease from 97 days.
The median time to contract for condos was 63 days, a 1.6% increase from 62 days. The median number of days between the listing date and closing date for condos was 103 days, a 1% increase from 102 days.
The median percent of original list price received for single-family homes was 96.1%. The median percent of original list price received for existing condominiums was 94.3%.
National and State Statistics
Nationally, total existing-home sales transactions rose 6.5% from January to a seasonally-adjusted annual rate of 5.77 million in February. Additionally, for the eighth straight month, overall sales greatly increased year-over-year, up 7.2% from a year ago (5.38 million in February 2019).
Statewide closed sales of existing single-family homes totaled 20,693 last month, up 9.1% from February 2019, according to Florida Realtors. Florida’s condo-townhouse market totaled 8,842, up 10.8% 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 February was $270,100, up 8.0% from February 2019 ($250,100), as prices rose in every region. February’s price increase marks 96 straight months of year-over-year gains.
Statewide median sales prices for both single-family homes and condo-townhouse properties in February rose year-over-year for 98 months-in-a-row. The statewide median sales price for single-family existing homes was $270,000, up 8% 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 6.7% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Broward Cash Buyers Represent About Double the National Figure
Broward cash transactions comprised 39.8% of February 2020 total closed sales, compared to 41.4% last year. Broward cash transactions are almost double the national figure (20%).
Condominiums comprise a large portion of Broward’s cash purchases as 55.7% of condo closings were made in cash in February 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 25% to 3.6 months, which indicates a seller’s market. Existing condominiums decreased 9.4%, from 6.4 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 February decreased 15% year-over-year, from 15,164 to 12,889. Inventory of single-family homes decreased 20.9% in February from 6,145 active listings last year to 4,863 in February 2020. Condominium inventory decreased 11% to 8,026 from 9,019 listings during the same period in 2019.
New listings of Broward single-family homes decreased 12.6% from 1,898 to 1,659. New listings of condominiums decreased 4%, from 2,242 to 2,152.
Nationally, total housing inventory at the end of February totaled 1.47 million units, up 5.0% from January, but down 9.8% from one year ago (1.63 million). Unsold inventory sits at a 3.1-month supply at the current sales pace, equal to the supply recorded in January and down from the 3.6-month figure recorded in February 2019.
To access February 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