MIAMI — Broward County total home sales posted a double-digit increase for the sixth consecutive month in February 2021 as pent-up demand and record-low mortgage rates continue fueling transactions, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Broward County total home sales jumped 24.8% year-over-year in February 2021, from 2,159 to 2,694. Broward single-family home sales rose 23.8% year-over-year, from 1,004 to 1,243. Broward existing condo transactions increased 25.6% year-over-year, from 1,155 to 1,451.
“Consistently low mortgage rates over the past several months have only fueled already strong demand for Broward real estate,” Broward-MIAMI President Patrick Simm 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 demand for South Florida real estate is evident in median time to contact. Broward single-family homes are going under contact in 22 days, 60.7% faster than a year ago (56 days). Broward condos are going under contract 46 days, 27% faster than a year ago (63 days).
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 Single-Family Home Sales Surge 98.3% in February 2021
Broward single-family luxury ($1-million-and-up) transactions jumped 98.3% year-over-year to 117 sales in February 2021. Broward existing condo luxury ($1-million-and-up) sales increased 200% year-over-year to 54 transactions.
Luxury months of supply continues to trend downward for all property types, month-over-month, and year-over-year.
Broward single-family homes priced between $400K to $600K surged 29.7% year-over-year to 371 transactions in February 2021. Broward existing condo sales priced between $400K to $600K increased 84.1% to 116 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 12.5% year-over-year in February 2021, increasing from $385,000 to $433,000. Existing condo prices increased 10.8% year-over-year, from $180,500 to $200,000.
Single-Family Home and Condo Dollar Volume Increases
Single-family home dollar volume increased 43.9% year-over-year, from $546.3 million to $786.3 million. Condo dollar volume increased 52.1% year-over-year, from $277.3 million to $421.6 million.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 2.81 in February, up from 2.74% in January. 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 1.6% of all closed residential sales in Broward were distressed last month, including REO (bank-owned properties) and short sales, compared to 4.2% in February 2020.
Total Broward distressed sales decreased 51.1%, from 44 to 90.
Short sales and REOs accounted for 0.5% and 1.2% year-over-year, respectively, of total Broward sales in February 2021. Short sale transactions decreased 48% year-over-year while REOs decreased 52.3%.
Nationally, distressed sales represented less than 1% of sales in February 2021, down from 2% in February 2020.
Broward Real Estate Selling Close to List Price
The median percent of original list price received for single-family homes was 97.8% in February 2021, up 1.8% from 96.1% last year. The median percent of original list price received for existing condominiums was 95.3%, up 1.1% from 94.3% last year.
The median number of days between listing and contract dates for Broward single-family home sales was 22 days, a 60.7% decrease from 56 days last year. The median number of days between the listing date and closing date for condos was 46 days, down 27% from 63 days.
The median time to sale for single-family homes was 67 days, a 30.2% decrease from 96 days last year. The median number of days to sale for condos was 85 days, a 17.5% decrease from 103 days.
National and State Statistics
Nationally, total existing-home sales transactions completed transactions that include single-family homes, townhomes, condominiums and co-ops, decreased 6.6% from January to a seasonally-adjusted annual rate of 6.22 million in February. Sales in total climbed year-over-year, up 9.1% from a year ago (5.70 million in February 2020).
In February, statewide home sales totaled 23,947, up 15.7% year-over-year, while existing condo-townhouse sales totaled 11,379, up 28.7% over February 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 February was $313,000, up 15.8% from February 2020 ($270,400), as prices rose in every region. February’s national price jump marks 108 straight months of year-over-year gains.
The statewide median sales price for single-family existing homes was $314,900, up 16.6% 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 $233,240, up 16.6% 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 36.9% of February 2021 total closed sales, compared to 39.8% last year. The national figure for cash buyers is 22%.
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 50.9% of condo closings were made in cash in February 2021 compared to 20.6% of single-family home sales.
Seller’s Market for Single-Family Homes, Condos
Inventory of single-family homes decreased 51.9% in February 2021 from 4,863 active listings last year to 2,338 last month. Condominium inventory decreased 19.4% to 6,466 from 8,026 listings during the same period in 2020.
Months supply of inventory for single-family homes decreased 52.8% to 1.7 months, which indicates a seller’s market. Inventory for existing condominiums decreased 15.5% to 4.9 months, which indicates a buyer’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 February 2021 decreased 31.7% year-over-year, from 12,889 to 8,804. Active listings remain about 60% below 2008 levels when sales bottomed.
New listings of Broward single-family homes increased 2% to 1,693 from 1,659. New listings of condominiums decreased 3.3%, from 2,152 to 2,081.
Nationally, total housing inventory at the end of February amounted to 1.03 million units, equal to January’s inventory and down 29.5% from one year ago (1.46 million). Unsold inventory sits at a 2.0-month supply at the current sales pace, slightly up from January’s 1.9-month supply and down from the 3.1-month amount recorded in February 2020. NAR first began tracking the single-family home supply in 1982.
To access February 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