MIAMI — Broward County continued its trend of surging total home sales in 2Q 2021 as pent-up demand, more U.S. individuals and companies moving to South Florida, 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 103.1% year-over-year, from 5,827 to 11,832. Broward single-family home transactions rose 67.7%, from 3,112 to 5,219. Broward existing condo sales increased 143.6%, from 2,715 to 6,613.
“Broward County would have posted even more sales if there was more inventory,” Broward-MIAMI President Patrick Simm said. “More individuals and companies are relocating to Greater Fort Lauderdale and Broward County because of our low-tax, pro-government, and incredible lifestyle we enjoy in 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.
Broward Luxury Sales Jump 288.4% as Northeast and West Coast Buyers Relocate
Broward County single-family home luxury ($1-million-and-up) transactions surged 288.4% year-over-year to 637 transactions in 2Q 2021. Broward County condo luxury sales increased 385.7% to 204 transactions in 2Q 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 23.4% year-over-year, from $385,000 to $475,000. Broward existing condo median prices rose 17.3% year-over-year, from $185,000 to $217,000.
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 $5.6 Billion, Showcasing Powerful Impact of Housing
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. Miami dollar volume showcases the impact housing plays in the local economy.
Broward single-family home dollar volume rose 139.6%, from $1.5 billion to $3.6 billion. Broward existing condo dollar volume increased 205.2% to $2 billion. The sales do not include Broward’s new construction condo market.
Non-distressed sales comprised about 98.9% of all closed residential sales in 2Q 2021 vs. 96.5% in 2Q 2020. Only 1.1% of all closed residential sales in Broward were distressed in 2Q 2021, including REO (bank-owned properties) and short sales, compared to 3.5% in 2Q 2020.
Short sales and REOs accounted for 0.4% and 0.7%, respectively, of total Broward sales in 2Q 2021. Short sale transactions increased 64.5% year-over-year while REOs fell 50.3%.
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 3.0% for 2Q 2021, down from the 3.23% average recorded during the same quarter a year earlier.
Robust Demand for Housing Statewide, Nationally Fueling Double-Digit Increase in Sales
Statewide, 2Q closed sales of existing single-family homes increased by 43.3% year-over-year (totaling 98,414), and were up nearly 16% compared to the 2Q 2019. Sales growth in the condo and townhouse resale market was even stronger, rising 117% (a total of 48,976 sales) compared to last year and up by almost 44% compared to two years ago, 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 2Q 2020 was $345,000, up 24.3% from the same time a year ago, according to data from Florida Realtors Research department in partnership with local Realtor boards/associations. The statewide median price for condo-townhouse properties during the quarter was $250,000, up 20.8% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Nationally, median sales price of single-family existing homes rose 22.9% to $357,900, an increase of $66,800 from one year ago. All regions saw double-digit year-over-year price growth, which was led by the Northeast (21.8%), followed by the South (21.0%), West (20.9%), and Midwest (17.1%).
New Listings Rise: More Sellers Listing Properties Should Help Alleviate Lack of Supply
New listings for Broward single-family homes rose 27.4% year-over-year in 2Q 2021, from 4,832 to 6,156. New listings for Broward condos rose 27.3% year-over-year in 2Q 2021, from 5,129 to 6,530. This is a sign that more sellers are coming to the market.
At the current sales pace, the number of active listings represents 1.4 months of inventory for single-family homes (seller’s market) and 2.3 for condominiums (seller’s market). A balanced market between buyers and sellers offers between six and nine months of supply inventory.
Broward real estate had 6,256 active listings in 2Q 2021, a 48.2% drop from the 12,088 listings at the same time last year. The inventory for single-family homes dropped 44.1%, from 4,088 to 2,284. Broward existing condo inventory decreased 50.4%, from 8,000 to 3,972.
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 100% for single-family homes and 96.5% for condos in 2Q 2021.
The median time to contract for single-family home listings was 13 days, a 68.3% drop from 41 days in 2Q 2020. The median time to contract for existing condos was 34 days, a 39.3% drop from 56 days in 2Q 2020.
The median time to sale for single-family homes decreased 31%, from 84 days to 58. The median time to sale for existing condos decreased 22.2%, from 99 to 77.
Broward Cash Sales 70.9% More than National Figure in 2Q 2021
Cash sales represented 39.3% of Broward closed sales in 2Q 2021, compared to 28% in 2Q 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 Miami’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 51.5% of all Broward existing condo sales and 23.8% of single-family transactions.
2Q 2021 Broward County 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