MIAMI — Broward County continued its trend of double-digit total home sales in 1Q 2021 as 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 surged 29.9% year-over-year, from 7,025 to 9,131. Broward single-family home transactions rose 28.4%, from 3,322 to 4,267. Broward single-family homes have now posted year-over-year sales gains in seven of the last eight quarters, a span of two years. Broward existing condo sales increased 31.4%, from 3,703 to 4,864.
“From millennials to baby boomers, homebuyers are choosing Greater Fort Lauderdale and Broward County to live, work and play,” Broward-MIAMI President Patrick Simm said. “Located in the center of South Florida, Broward is home to a dynamic business district and we are seeing a new wave of tech companies relocating here bringing high-paying jobs.”
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 Sales Jump 105.4% as Tax-Burdened High-Net-Worth Buyers Relocate
Broward County single-family home luxury ($1-million-and-up) transactions surged 105.4% year-over-year to 419 transactions in 1Q 2021. Broward County condo luxury sales increased 168.9% to 164 transactions in 1Q 2021.
Record-low interest rates; a record-high S&P 500; the appeal of stable assets in a volatile economy; homebuyers leaving tax-burdened Northeastern and West Coast 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.
Broward Homeowners’ Home Equity Surges as Many Pay Lower Mortgage Payments
With interest rates still at record lows, many South Florida homeowners have refinanced their home loans. So not only are many homeowners paying lower mortgage payments today; they are doing so while their wealth (home equity) has significantly increased. Home equity can be tapped for renovations, college loans and more.
Broward single-family home median prices rose 14.5% year-over-year, from $380,000 to $435,000. Broward existing condo median prices rose 17.1% year-over-year, from $175,875 to $206,000.
Rising median prices is a trend nationwide as record-low mortgages rates and the increased availability of remote work and education has accelerated the demand for housing. Low inventory relative to high demand leads to prices rising.
Should mortgage rates resume their upward climb, home price growth is likely to slow in response. Also, as more sellers list properties in 2021, the increased inventory should ease the growth of median prices.
Broward Dollar Volume Totals $4.1 Billion, Showcasing Impact Housing Plays in Economy
While other industries struggled over the past year, housing lifted the economy nationally and locally. For every two homes sold in the U.S., one job is created. Broward dollar volume showcases the impact housing plays in the local economy.
Broward single-family home dollar volume rose 57.1%, from $1.7 billion to $2.7 billion. Broward existing condo dollar volume increased 58% to $1.4 billion.
Non-distressed sales comprised about 98.5% of all closed residential sales in 1Q 2021 vs. 96.2% in 1Q 2020. Only 1.5% of all closed residential sales in Broward were distressed in 1Q 2021,
including REO (bank-owned properties) and short sales, compared to 3.8% in 1Q 2020.
Short sales and REOs accounted for 0.6% and 0.9%, respectively, of total Broward sales in 1Q 2021. Short sale transactions decreased 28.4% year-over-year while REOs fell 55.7%.
Lower mortgage rates made home purchases more affordable in 2021. According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 2.88% for 1Q 2021, down from the 3.51% average recorded during the same quarter a year earlier.
Broward Hot Markets: Buyers Look to the Larger Homes Available in the Suburbs
Months’ supply of inventory is a strong indicator of real estate activity. A look at Broward County neighborhoods with the lowest months of supply of inventory (at least 100 new pending sales) in 1Q 2021:
- Coconut Creek, a north Broward community on the Palm Beach-Broward line, had 0.8 months supply
- Pembroke Pines, a south Broward community north of Miramar, had 0.9 months supply
- Sunrise, a central-western Broward city north of Plantation, had 0.9 months supply
- Cooper City, a south Broward community north of Pembroke Pines, had 0.9 months supply
- Coral Springs, a north Broward community west of Coconut Creek, had 0.9 months supply
- Miramar, a south Broward community on the Broward-Miami-Dade line, had 1.6 months supply
- Weston, a south Broward community west of Davie, had 1.9 months supply
- Plantation, a central Broward community west of Fort Lauderdale, had 2 months supply
- Coral Springs, a north Broward community west of Coconut Creek, had 2.1 months supply
- Davie, a south Broward town east of Weston, had 2.2 months supply
Robust Demand for Housing Statewide, Nationally Fueling Double-Digit Increase in Sales
Closed sales of single-family homes statewide totaled 78,353 in 1Q 2021, up 19.4% from the 1Q 2020 level. In Florida’s condo-townhouse market, statewide closed sales totaled 37,505 during 1Q 2021, up 37% compared to 1Q 2020, according to data from Florida Realtors Research department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.
The statewide median sales price for single-family existing homes in 1Q 2021 was $317,500, up 17.6% from the same time a year ago. The statewide median price for condo-townhouse properties during the quarter was $235,422, up 14.8% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Nationally, the median existing-home sales price rose 16.2% on a year-over-year basis to $319,200, a record high since 1989. All regions recorded double-digit year-over-year price growth, with the Northeast seeing a 22.1% increase, followed by the West (18.0%), South (15.0%) and Midwest (14.4%).
Buyers Targeting Broward Existing Condos: Four Times More Inventory than Single-Family
At the current sales pace, the number of active listings represents 1.6 months of inventory for single-family homes (seller’s market) and 4.1 for condominiums (seller’s). A balanced market between buyers and sellers offers between six and nine months of supply inventory.
Broward real estate had 7,867 active listings in 1Q 2021, a 40% drop from the 13,114 listings at the same time last year. The inventory for single-family homes dropped 55.1%, from 4,924 to 2,209. Broward existing condo inventory decreased 30.9%, from 8,190 to 5,658.
Broward Real Estate Attracting Multiple Bids, Buyers Going Over-List Price
With low inventory, particularly for single-family homes, Broward properties are attracting multiple bids and buyers going over-list price. The median percent of original list price received was 98.2% for single-family homes and 95.6% for condos in 1Q 2021.
The median time to contract for single-family home listings was 20 days, a 60% drop from 50 days in 1Q 2020. The median time to contract for existing condos was 45 days, a 22.4% drop from 58 days in 1Q 2020.
The median time to sale for single-family homes decreased 30.1%, from 93 days to 65. The median time to sale for existing condos decreased 12.1%, from 99 to 87.
Broward Cash Sales Nearly Double National Figure: South Florida Top Market for Global Buyers
Cash sales represented 35.9% of Broward closed sales in 1Q 2021, compared to 37.8% in 1Q 2020. About 20 percent of U.S. home sales are made in cash, according to the latest NAR statistics.
The high percentage of cash buyers reflects South Florida’s top position as the preeminent American real estate market for foreign buyers, who tend to purchase with all cash as well as some moving from more expensive U.S. markets who are able to buy more with their profits from real estate sales.
Cash sales accounted for 49.2% of all Broward existing condo sales and 20.8% of single-family transactions.
1Q 2021 Broward 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 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