MIAMI — Broward County total home sales posted a double-digit increase for the seventh consecutive month in March 2021 as pent-up demand and 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 41.8% year-over-year in March 2021, from 2,835 to 4,021. Broward single-family home sales rose 39.3% year-over-year, from 1,342 to 1,870. Broward existing condo transactions increased 44.1% year-over-year, from 1,493 to 2,151.
Broward’s real estate’s robust March 2021 statistics are in comparison to strong March 2020 sales. Local and national home sales experienced a brief slowdown starting in April 2020, but quickly rebounded to boost and significantly uphold the economy at a time when other industries struggled.
“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,” Broward-MIAMI President Patrick Simm said.
The demand for South Florida real estate is evident in median time to contract. Broward single-family homes are going under contract in 16 days, 62.8% faster than a year ago (43 days). Broward condos are going under contract in 40 days, 21.6% faster than a year ago (51 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 150% in March 2021
Broward single-family luxury ($1-million-and-up) transactions jumped 150% year-over-year to 210 sales in March 2021. Broward existing condo luxury ($1-million-and-up) sales increased 220% year-over-year to 80 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 54.5% year-over-year to 590 transactions in March 2021. Broward existing condo sales priced between $400K to $600K increased 139.7% to 187 transactions.
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.
Robust Price Appreciation in Broward
Strong demand coupled with limited supply continue to drive price appreciation in Broward.
Broward County single-family home prices increased 14.1% year-over-year in March 2021, increasing from $390,000 to $445,000. Existing condo prices increased 16.7% year-over-year, from $180,000 to $210,000.
Single-Family Home and Condo Dollar Volume Increases
Single-family home dollar volume increased 83.9% year-over-year, from $673.8 million to $1.2 billion. Condo dollar volume increased 78.6% year-over-year, from $352.2 million to $628.9 million.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 3.08% in March, up from 2.81% in February. 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 1.3% of all closed residential sales in Broward were distressed last month, including REO (bank-owned properties) and short sales, compared to 2.9% in March 2020.
Total Broward distressed sales decreased 34.9%, from 83 to 54.
Short sales and REOs accounted for 0.6% and 0.8% year-over-year, respectively, of total Broward sales in March 2021. Short sale transactions increased 21.1% year-over-year while REOs decreased 51.6%.
Nationally, distressed sales represented less than 1% of sales in March 2021, down from 3% in March 2020.
Broward Real Estate Selling Close to List Price
The median percent of original list price received for single-family homes was 98.5% in March 2021, up 2.3% from 96.3% 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 16 days, a 62.8% decrease from 43 days last year. The median number of days between the listing date and closing date for condos was 60 days, down 26.8% from 82 days.
The median time to sale for single-family homes was 60 days, a 26.8% decrease from 82 days last year. The median number of days to sale for condos was 82 days, a 11.8% decrease from 93 days.
National and State Statistics
Nationally, total existing-home sales transactions completed transactions that include single-family homes, townhomes, condominiums and co-ops, decreased 3.7% from February to a seasonally-adjusted annual rate of 6.01 million in March. Sales overall climbed year-over-year, up 12.3% from a year ago (5.35 million in March 2020).
In March, statewide home sales totaled 32,819, up 23.3% year-over-year, while existing condo-townhouse sales totaled 16,518, up 52.6% over March 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 March was $329,100, up 17.2% from March 2020 ($280,700), as prices increased in every region. March’s national price jump marks 109 straight months of year-over-year gains.
The statewide median sales price for single-family existing homes was $327,000 up 18.9% 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 $242,000, up 15.2% 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 37.2% of March 2021 total closed sales, compared to 35.9% last year. The national figure for cash buyers is 23%.
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 50.5% of condo closings were made in cash in March 2021 compared to 21.9% of single-family home sales.
Seller’s Market for Single-Family Homes, Balanced Market for Condos
Inventory of single-family homes decreased 55.1% in March 2021 from 4,924 active listings last year to 2,209 last month. Condominium inventory decreased 30.9% to 5,658 from 8,190 listings during the same period in 2020.
Months supply of inventory for single-family homes decreased 56.8% to 1.6 months, which indicates a seller’s market. Inventory for existing condominiums decreased 30.5% to 4.1 months, which also 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 March 2021 decreased 40% year-over-year, from 13,114 to 7,867.
New listings of Broward single-family homes increased 20.5% to 2,123 from 1,762. New listings of condominiums increased 23.1%, from 1,928 to 2,373.
Nationally, total housing inventory at the end of March amounted to 1.07 million units, up 3.9% from February’s inventory and down 28.2% from one year ago (1.49 million). Unsold inventory sits at a 2.1-month supply at the current sales pace, marginally up from February’s 2.0-month supply and down from the 3.3-month supply recorded in March 2020. Inventory numbers continue to represent near-historic lows; NAR first began tracking the single-family home supply in 1982.
To access March 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