MIAMI — Broward County total home sales increased in 3Q 2020, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Broward County total home sales rose 4.2% year-over-year, from 8,682 to 9,043. Broward single-family home transactions surged 12.9%, from 4,299 to 4,853. Broward existing condo sales decreased 4.4%, from 4,383 to 4,190.
“Consistently low mortgage rates over the past several months have only fueled already strong demand for Broward real estate,” Broward MIAMI President Sharon R. Lindblade said. “Homebuyers, particularly those from tax-burdened Northeastern states, are purchasing in sunny South Florida and looking for larger spaces for working and schooling from home.”
The COVID-19 situation has accelerated the trend of homebuyers from New York and cold weather and tax-burdened Northeastern states searching and purchasing homes in South Florida.
Before the COVID-19 situation, the Broward market was exceptionally strong. Broward real estate had record low delinquencies, no subprime mortgage crisis, strong demand/low supply, low interest rates, strong population growth, demand from foreign buyers and tax refugees from tax burdened states, high consumer confidence and a strong job market.
Broward Single-Family Luxury Sales Jump 82% in 3Q 2020
Broward County single-family home luxury ($1-million-and-up) transactions surged 82% year-over-year to 344 transactions in 3Q 2020. Broward County condo luxury sales jumped 31.5% to 63 transactions in 3Q 2020.
Record-low interest rates; a record-high S&P 500; the appeal of stable assets in a volatile economy; homebuyers leaving tax-burdened Northeastern states to purchase in Florida (no state income tax); and work-from-home and remote-learning policies have all combined to create a robust market for luxury single-family properties.
Median Home Prices Rise in 3Q 2020
Strong demand coupled with limited supply continue to drive price appreciation in Broward.
Broward single-family home median prices rose 11.8% year-over-year, from $370,000 to $413,500. Broward existing condo median prices rose 14.3% year-over-year, from $173,000 to $197,750.
Dollar Volume Jumps in 3Q 2020
Broward single-family home dollar volume rose 32.6%, from $2 billion to $2.6 billion. Broward condo dollar volume increased 7.5% to $1 billion.
Non-distressed sales comprised about 97.3% of all closed residential sales in 3Q 2020 vs. 96.6% in 3Q 2019. Only 2.7% of all closed residential sales in Broward were distressed in 3Q 2020,
including REO (bank-owned properties) and short sales, compared to 3.4% in 3Q 2019.
Short sales and REOs accounted for 0.6% and 2%, respectively, of total Broward sales in 3Q 2020. Short sale transactions decreased 7.9% year-over-year while REOs fell 19.3%.
Lower mortgage rates made home purchases more affordable in 2020. According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 2.95% for 3Q 2020, significantly lower than the 3.67% average reported during the same quarter a year earlier.
Hot Markets Overview Reveals Strong Demand and Limited Supply in Many Local Areas
Months’ supply of inventory is a strong indicator of real estate activity. Top Broward County neighborhoods with the lowest months of supply of inventory (at least 100 new pending sales) in 3Q 2020:
- Lauderhill, a central Broward city west of Fort Lauderdale, had 1.1 months supply
- Pembroke Pines, a south Broward city north of Miramar, had 1.1 months supply
- Coral Springs, a north Broward city north of Tamarac, had 1.2 months supply
- Cooper City, a south Broward community north of Pembroke Pines, had 1.4 months supply
- Sunrise, a north Broward city north of Plantation, had 1.4 months supply
- Miramar, a south Broward city along the Broward-Miami-Dade line, had 2.2 months supply
- Coral Springs, a north Broward city north of Tamarac, had 3.2 months supply
- Tamarac, a west Broward city north of Sunrise, had 3.3 months supply
- Davie, a south Broward town south of Plantation, had 3.7 months supply
- Weston, a south Broward community west of Davie, had 3.7 months supply
State and National Stats in 3Q 2020
Closed sales of single-family homes statewide totaled 89,562 in 3Q 2020, up 13.7% from the 3Q 2019 level; closed sales of condo-townhouse properties totaled 33,523, up 13.5% compared to 3Q 2019. Closed sales typically occur 30 to 90 days after sales contracts are written.
The statewide median sales price for single-family existing homes in 3Q 2020 was $299,900, up 13.2% from the same time a year ago, according to data from Florida Realtors Research department in partnership with local Realtor boards/associations. The statewide median price for condo-townhouse properties during the quarter was $215,000, also up 13.2% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
The nation’s median existing single-family home price climbed 12.0% on a year-over-year basis, to $313,500. All four major regions saw double-digit year-over-year price gains, led by the West (13.7%), but followed closely by the Northeast (13.3%), the South (11.4%), and the Midwest (11.1%).
Seller’s Market for Single-Family Homes, Balanced Market for Condos
At the current sales pace, the number of active listings represents 2.6 months of inventory for single-family homes and 6.5 for condominiums. A balanced market between buyers and sellers offers between six and nine months of supply inventory.
Broward real estate had 11,018 active listings in 3Q 2020, a 15.1% decrease from the 12,985 listings at the same time last year. The inventory for single-family homes decreased 39.3%, from 5,330 to 3,234. Broward existing condo inventory decreased 1.7%, from 7,655 to 7,784.
Broward Homes Selling Close to List Price
The median percent of original list price received was 97% for single-family homes and 95% for condos in 3Q 2020.
The median time to contract for single-family home listings was 27 days, an 38.6% decrease from 44 days in 3Q 2019. The median time to contract for existing condos was 52 days, a 1.9% decrease from 53 days in 3Q 2019.
The median time to sale for single-family homes decreased 17.4%, from 86 days to 71. The median time to sale for existing condos decreased 3.2%, from 95 to 92.
Broward Cash Sales Higher than National Figure
Cash sales represented 27.8% of Broward closed sales in 3Q 2020, compared to 32.9% in 3Q 2019.
About 20 percent of U.S. home properties are made in cash, according to the latest NAR statistics.
The high percentage of cash buyers reflects Miami’s top position as the preeminent American real estate market for foreign buyers, who tend to purchase with all cash.
Cash sales accounted for 42.8% of all Broward existing condo sales and 14.8% of single-family transactions.
3Q 2020 Broward County Statistical Reports — visit 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 223 international organizations worldwide. MIAMI’s official website is www.MiamiRealtors.com