MIAMI — Martin County real estate posted another robust month of total home sales in May 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.
Martin County total home sales surged 102.9% year-over-year, from 204 to 414. Martin County single-family home transactions rose 105.3%, from 133 to 273. Martin existing condo sales increased 98.6%, from 71 to 141.
“Martin County home sales would have been larger had there been more inventory, especially in single-family homes,” JTHS-MIAMI President Bill Mate said. “Martin County’s small-town atmosphere give homebuyers a different option compared to big-city life in other parts of South Florida.”
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. More inventory is expected to come to the market later this year as potential home sellers become more comfortable listing and showing their homes. The falling number of homeowners in mortgage forbearance will also bring about more inventory.
Martin County Luxury Sales Jump as Tax-Burdened High-Net-Worth Buyers Relocate
Martin County single-family luxury ($1-million-and-up) transactions jumped 322.2% year-over-year to 38 sales in May 2021. Martin County existing condo luxury ($1-million-and-up) sales increased 33.3% year-over-year to 4 transactions.
Luxury months of supply continues to trend downward for all property types, month-over-month, and year-over-year.
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.
Martin single-family homes priced between $400K to $600K surged 59% year-over-year to 62 transactions in May 2021. Martin existing condo sales priced between $400K to $600K increased 50% to 6 transactions.
Martin 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.
Martin County single-family home median prices increased 28.7% year-over-year in May 2021, increasing from $365,000 to $469,900. Existing condo median prices increased 31.9% year-over-year, from $172,500 to $227,500.
The greater share of luxury sales in the current market is part of the reason for the large year-over-year increase in median prices.
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.
Lower mortgage rates are making home purchases more affordable. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 2.96% in May, down from 3.06% in April. The average commitment rate across all of 2020 was 3.11%. Yun expects the 30-year fixed-rate mortgage to remain below 3.5% in 2021.
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.
Martin Dollar Volume Totals $306.6 Million, 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. Dollar volume showcases the impact housing plays in the local economy.
Single-family home dollar volume increased 279.2% year-over-year, from $69.3 million to $262.6 million. Condo dollar volume increased 136.1% year-over-year, from $18.7 million to $44 million.
Martin County Distressed Sales Keeps Dropping, Reflecting Healthy Market
Only 0.9% of all closed residential sales in Martin County were distressed last month, including REO (bank-owned properties) and short sales, compared to 0.4% in May 2020.
Total Martin distressed sales increased 300%, from 1 to 4.
Short sales and REOs accounted for 0% and 0.9% year-over-year, respectively, of total Martin County sales in May 2021. Short sale transactions stayed even at 0 year-over-year while REOs increased 300%, from 1 to 4.
Nationally, distressed sales represented less than 1% of sales in May 2021, down from 3% in May 2020.
National, State Housing Demand Robust as More Inventory Expected to Arrive
Nationally, total existing-home sales transactions completed transactions that include single-family homes, townhomes, condominiums and co-ops, dropped 0.9% from April to a seasonally-adjusted annual rate of 5.80 million in May. Sales in total climbed year-over-year, up 44.6% from a year ago (4.01 million in May 2020).
Statewide, closed sales of single-family homes in May totaled 30,985, up 57.9% year-over-year, while existing condo-townhouse sales totaled 15,491, up 155.2% over May 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 May was $350,300, up 23.6% from May 2020 ($283,500), as every region registered price increases. This is a record high and marks 111 straight months of year-over-year gains since March 2012.
The statewide median sales price for single-family existing homes was $344,900, up 27.7% 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 $250,000, up 24.1% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Seller’s Market for Martin Real Estate
Inventory of single-family homes decreased 61% in May 2021 from 902 active listings last year to 352 last month. Condominium inventory decreased 59.5% to 172 from 425 listings during the same period in 2020.
Months supply of inventory for single-family homes decreased 70.8% to 1.4 months, which indicates a seller’s market. Inventory for existing condominiums decreased 69.4% to 1.5 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 May 2021 decreased 60.5% year-over-year, from 1,327 to 524.
New listings of Palm Beach single-family homes decreased 9.5% to 276 from 305. New listings of condominiums decreased 20.4%, from 137 to 109.
Nationally, total housing inventory at the end of May amounted to 1.23 million units, up 7.0% from April’s inventory and down 20.6% from one year ago (1.55 million). Unsold inventory sits at a 2.5-month supply at the present sales pace, marginally up from April’s 2.4-month supply but down from 4.6-months in May 2020.
Martin Real Estate Attracting Multiple Bids, Buyers Going Over-List Price
The median percent of original list price received for single-family homes was 99.3% in May 2021, up 4.7% from 94.8% last year. The median percent of original list price received for existing condominiums was 99%, up 4.7% from 94.6% last year.
The median number of days between listing and contract dates for Martin single-family home sales was 12 days, a 70% decrease from 40 days last year. The median time to sale for single-family homes was 59 days, a 33% decrease from 88 days last year.
The median number of days between the listing date and closing date for condos was 9 days, down 81.3% from 48 days. The median number of days to sale for condos was 52 days, a 34.2% decrease from 79 days.
Martin Cash Sales More than Double National Figure
Cash sales represented 53.1% of Martin closed sales in May 2021, compared to 43.1% in May 2020. About 23 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 can buy more with their profits from real estate sales.
Cash sales accounted for 65.9% of all Martin existing condo sales and 46.5% of single-family transactions.
To access May 2021 Martin 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 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