MIAMI — Broward County total home sales surged in October 2020 as strong pent-up demand and record-low mortgage rates fueled transactions, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Broward County total home sales jumped 23.1% year-over-year, from 2,632 to 3,241. Broward single-family home sales jumped 23.2% year-over-year, from 1,344 to 1,656. Broward existing condo transactions increased 23.1% year-over-year, from 1,288 to 1,585.
Broward single-family home sales have now posted double-digit, year-over-year increases for three consecutive months and Broward existing condos have posted transaction gains for two straight two months.
“Powered by low interest rates, high demand and low inventory, Broward County home sales continued surging in October,” Broward MIAMI President Sharon R. Lindblade said. “Homebuyers are seeking more space for home offices, backyards and good schools, and the greater Fort Lauderdale region has many options to offer.”
Broward Single-Family Luxury Home Sales Surge 84.4% in October 2020
Broward single-family homes priced between $400K to $600K surged 53.6% year-over-year to 530 transactions in October 2020. Broward existing condo sales priced between $400K to $600K increased 19% to 75 transactions.
Broward single-family luxury ($1-million-and-up) transactions jumped 84.4% year-over-year to 118 sales in October 2020. Broward existing condo luxury ($1-million-and-up) sales increased 136.4% year-over-year to 26 transactions.
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.
Robust Price Appreciation in Broward County
Strong demand coupled with limited supply continue to drive price appreciation in Broward.
Broward County single-family home prices increased 14.6% year-over-year in October 2020, increasing from $362,000 to $415,000. Existing condo prices increased 12.5% year-over-year, from $168,000 to $189,000.
Single-Family Home Dollar Volume Increases
Single-family home dollar volume increased 49.4% year-over-year, from $611.6 million to $913.4 million. Condo dollar volume increased 41.2% year-over-year, from $272.9 million to $385.3 million.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 2.83% in October, down from 2.89% in September. The average commitment rate across all of 2019 was 3.94%.
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 13 are approved for Federal Housing Administration loans, down from 29 last year, according to Florida Department of Business and Professional Regulation and FHA.
A new condo approval process is expected to increase sales. The new guidance, which went into effect in October 2019, extends certifications from two years to three, allows for single-unit mortgage approvals, provides more flexibility with owner/occupancy ratios, and increases the allowable number of FHA loans in a single project. The changes, many of which MIAMI and NAR has championed, are expected to generate increased homeownership opportunities.
Broward Distressed Sales Stay Low, Reflecting Healthy Market
Only 1.9% of all closed residential sales in Broward were distressed last month, including REO (bank-owned properties) and short sales, compared to 4.8% in October 2020.
Total Broward distressed sales decreased 51.6%, from 126 to 61.
Short sales and REOs accounted for 0.7% and 1.2% year-over-year, respectively, of total Broward sales in October 2020. Short sale transactions decreased 4.2% year-over-year while REOs decreased 62.7%.
Nationally, distressed sales represented less than 1% of sales in October, equal to September’s percentage but down from 2% in October 2019.
Broward Real Estate Selling Close to List Price
The median percent of original list price received for single-family homes was 97.6% in October, up 1.9% from 95.8% last year. The median percent of original list price received for existing condominiums was 95.3%, up 0.4% from 94.9% last year.
The median number of days between listing and contract dates for Broward single-family home sales was 22 days, a 52.2% decrease from 46 days last year. The median number of days between the listing date and closing date for condos was 37 days, down 27.5% from 51 days.
The median time to sale for single-family homes was 68 days, a 22.7% decrease from 88 days last year. The median number of days to sale for condos was 78 days, an 15.2% decrease from 92 days.
National and State Statistics
Nationally, total existing-home sales transactions completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 4.3% from September to a seasonally-adjusted annual rate of 6.85 million in October. Overall, sales rose year-over-year, up 26.6% from a year ago (5.41 million in October 2019).
In October, closed sales of single-family homes statewide totaled 29,659, up 26.9% year-over-year, while existing condo-townhouse sales totaled 12,110, up 30.3% over October 2019. 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 October was $313,000, up 15.5% from October 2019 ($271,100), as prices increased in every region. October’s national price increase marks 104 straight months of year-over-year gains.
The statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year in October for 106 consecutive months. The statewide median sales price for single-family existing homes was $305,000, up 15.6% 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 $221,000, up 15.9% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Broward’s Cash Buyers Top National Figure
Broward cash transactions comprised 30.4% of October 2020 total closed sales, compared to 31.9% last year. The national figure for cash buyers is 19%.
Broward’s high percentage of cash sales reflects South Florida’s ability to attract a diverse number of international homebuyers, who tend to purchase properties in all cash.
Condominiums comprise a large portion of Broward’s cash purchases as 45.2% of condo closings were made in cash in October 2020 compared to 16.2% of single-family home sales.
Seller’s Market for Single-Family Homes, Balanced Market for Condos
Inventory of single-family homes decreased 38.9% in October from 5,362 active listings last year to 3,278 last month. Condominium inventory decreased 0.9% to 7,720 from 7,790 listings during the same period in 2019.
Months supply of inventory for single-family homes decreased 39% to 2.5 months, which indicates a seller’s market. Inventory for existing condominiums increased 12.5% to 6.3 months, which indicates a buyer’s market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Total active listings at the end of October decreased 16.4% year-over-year, from 13,152 to 10,998. Active listings remain about 60% below 2008 levels when sales bottomed.
New listings of Broward single-family homes increased 6.1% to 1,986 from 1,872. New listings of condominiums increased 7%, from 2,062 to 2,207.
Nationally, total housing inventory at the end of October totaled 1.42 million units, down 2.7% from September and down 19.8% from one year ago (1.77 million). Unsold inventory sits at an all-time low 2.5-month supply at the current sales pace, down from 2.7 months in September and down from the 3.9-month figure recorded in October 2019.
To access October 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 223 international organizations worldwide. MIAMI’s official website is www.MiamiRealtors.com