MIAMI — Broward County total home sales jumped double-digits year-over-year for the fifth consecutive month in January 2021, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Broward County total home sales surged 18.9% year-over-year in January 2021, from 2,031 to 2,416. Broward single-family home sales rose 18.2% year-over-year, from 976 to 1,154. Broward existing condo transactions increased 19.6% year-over-year, from 1,055 to 1,262.
“The pandemic accelerated trends that were already apparent in the South Florida market, including affluent buyers from high-tax and high-density states purchasing in South Florida,” Broward-MIAMI President Patrick Simm said. “Home sales are not only increasing by double digits, but properties are going under contract significantly faster than last year, a sign of the robust demand for Fort Lauderdale and Broward real estate.”
Broward real estate accounted for 14,981 total home sales in the five-month stretch from September 2020 to January 2021. That is a 21.8% increase in the number of total transactions compared to the five-month stretch from September 2019 to January 2020.
Lack of inventory in certain price points is impacting sales, particularly for single-family homes. Increased housing starts and more sellers listing properties in 2021 should help alleviate the lack of supply.
Broward Luxury Condo Sales Surge 66.7% in January 2021
Broward single-family luxury ($1-million-and-up) transactions jumped 50.81% year-over-year to 92 sales in January 2021. Broward existing condo luxury ($1-million-and-up) sales increased 66.7% year-over-year to 30 transactions.
Broward single-family homes priced between $400K to $600K surged 45.5% year-over-year to 355 transactions in January 2021. Broward existing condo sales priced between $400K to $600K increased 75.4% to 100 transactions.
Record-low interest rates; a robust 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.
Strong Price Appreciation in Broward
Strong demand coupled with limited supply continue to drive price appreciation in Broward.
Broward County single-family home prices increased 12.2% year-over-year in January 2021, increasing from $374,450 to $420,000. Existing condo prices increased 22.9% year-over-year, from $170,000 to $209,000.
Single-Family Home and Condo Dollar Volume Increases
Single-family home dollar volume increased 34.6% year-over-year, from $479.7 million to $645.8 million. Condo dollar volume increased 36.2% year-over-year, from $255.5 million to $348.1 million.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 2.74% in January, up from 2.68% in December. The average commitment rate across all of 2020 was 3.11%.
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 better condo approval process is expected to increase sales. The 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 have championed, are expected to generate increased homeownership opportunities.
Broward Distressed Sales Stay Low, Reflecting Healthy Market
Only 1.7% of all closed residential sales in Broward were distressed last month, including REO (bank-owned properties) and short sales, compared to 4.7% in January 2020.
Total Broward distressed sales decreased 56.8%, from 95 to 41.
Short sales and REOs accounted for 0.7% and 0.9% year-over-year, respectively, of total Broward sales in January 2021. Short sale transactions decreased 43.3% year-over-year while REOs decreased 63.1%.
Nationally, distressed sales represented less than 1% of sales in January 2021, down from 2% in January 2020.
Broward Real Estate Selling Close to List Price
The median percent of original list price received for single-family homes was 98% in January 2021, up 2.6% from 95.5% last year. The median percent of original list price received for existing condominiums was 95.7%, up 1.2% from 94.6% last year.
The median number of days between listing and contract dates for Broward single-family home sales was 22 days, a 56% decrease from 50 days last year. The median number of days between the listing date and closing date for condos was 45 days, down 21.1% from 57 days.
The median time to sale for single-family homes was 70 days, a 27.8% decrease from 97 days last year. The median number of days to sale for condos was 92 days, a 8.9% decrease from 101 days.
National and State Statistics
Nationally, total existing-home sales transactions completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 0.6% from December to a seasonally-adjusted annual rate of 6.69 million in January. Sales in total climbed year-over-year, up 23.7% from a year ago (5.41 million in January 2020).
In January, closed sales of single-family homes statewide totaled 21,587, up 18% year-over-year, while existing condo-townhouse sales totaled 9,608, up 24.6% over January 2020. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, the median existing-home price for all housing types in January was $303,900, up 14.1% from January 2020 ($266,300), as prices increased in every region. January’s national price jump marks 107 straight months of year-over-year gains.
The statewide median sales price for single-family existing homes was $305,000, up 15.1% 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 $230,000, up 15% 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 32.7% of January 2021 total closed sales, compared to 38.2% 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 44.8% of condo closings were made in cash in January 2021 compared to 19.3% of single-family home sales.
Seller’s Market for Single-Family Homes and Condos
Inventory of single-family homes decreased 47.8% in January 2021 from 5,087 active listings last year to 2,656 last month. Condominium inventory decreased 13.3% to 7,021 from 8,095 listings during the same period in 2020.
Months supply of inventory for single-family homes decreased 47.4% to 2 months, which indicates a seller’s market. Inventory for existing condominiums decreased 6.9% to 5.4 months, which indicates a seller’s market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Months supply of inventory is down since July 2019 for single-family, reflecting strong demand.
Total active listings at the end of January 2021 decreased 26.6% year-over-year, from 13,182 to 9,677. Active listings remain about 60% below 2008 levels when sales bottomed.
New listings of Broward single-family homes decreased 8.1% to 1,712 from 1,863. New listings of condominiums decreased 10.2%, from 2,410 to 2,165.
Nationally, total housing inventory at the end of January amounted to 1.04 million units, down 1.9% from December and down 25.7% from one year ago (1.40 million). Unsold inventory sits at a 1.9-month supply at the current sales pace, equal to December’s supply and down from the 3.1-month amount recorded in January 2020. NAR first began tracking the single-family home supply in 1982.
To access January 2021 Broward 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 101 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