MIAMI — Broward County total home sales continued rising in August 2021 as pent-up demand, more U.S. individuals and companies moving to South Florida, 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 rose 10.8% year-over-year in August 2021, from 3,089 sales to 3,422. Broward single-family home transactions decreased 2.8%, from 1,672 to 1,625. Broward existing condo sales increased 26.8%, from 1,417 to 1,797.
“The pandemic and the increase availability of remote work accelerated migration to South Florida, and we’re seeing it month after month,” Broward-MIAMI President Patrick Simm said. “If you can do business anywhere, why not move to a market like South Florida where your money will go further, and your lifestyle and health will be so much better?”
Broward home sales are also significantly higher vs. August 2019. Broward total home sales are up 18.2% in August 2021 vs. August 2019, from 2,895 to 3,422. Broward single-family home sales (13.2% increase) and condo transactions (23.2% jump) are higher than August 2019.
Demand for Broward Condos Surges; Condo Sales Rise 26.8% Year-over-Year in August 2021
With so many U.S. companies and individuals relocating to our region over the last year, many of those relocating homebuyers are taking advantage of the condo inventory. International homebuyers, who have long preferred condos, have pent-up demand for Miami real estate and are also returning to the No. 1 market for foreign homebuyers.
Broward existing condo sales are up in all price ranges in August 2021, with major transaction increases in properties selling at $300K and above.
Lack of inventory in certain price points is impacting sales, particularly for single-family homes. More inventory is expected to come to the market 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.
Broward Luxury Sales Jump as Northeast and West Coast Buyers Move to Mega Region
Broward single-family luxury ($1-million-and-up) transactions jumped 68.1% year-over-year to 195 sales in August 2021. Broward existing condo luxury ($1-million-and-up) sales increased 294.1% year-over-year to 67 transactions.
There are 3.7 months of supply in luxury single-family homes; 6.3 months of supply in luxury condos. 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.
With global vaccinations rising and unstable political situations around the world, South Florida is seeing an increase in foreign homebuyers. Global buyers are also coming here for the vaccine and purchasing property. Global buyers purchase in Miami because Miami is a world-class global city with better real estate prices than other similar global cities. Foreign buyers feel at home with our incredible diversity and acceptance of all cultures.
Broward single-family homes priced between $400K to $600K increased 9.76% year-over-year to 578 transactions in August 2021. Broward existing condo sales priced between $400K to $600K increased 80.9% to 170 transactions.
New Listings Rise; More Inventory Arriving for Low-Supply/High-Demand Market
New listings of Broward single-family homes increased 2.3% to 1,838 from 1,796. New listings of condominiums increased 1.1%, from 2,047 to 2,069.
Inventory of single-family homes decreased 32.5% year-over-year in August 2021 from 3,492 active listings last year to 2,357 last month. Condominium inventory decreased 50.7% year-over-year to 3,845 from 7,799 listings during the same period in 2020.
Months’ supply of inventory is down since July 2019 for single-family, reflecting strong demand. Months’ supply of inventory for single-family homes decreased 46.4% to 1.5 months, which indicates a seller’s market. Inventory for existing condominiums decreased 67.7% to 2.1 months, which indicates a seller’s market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Total active listings at the end of August 2021 decreased 45.1% year-over-year, from 11,291 to 6,202.
Nationally, total housing inventory at the end of August totaled 1.29 million units, down 1.5% from July’s supply and down 13.4% from one year ago (1.49 million). Unsold inventory sits at a 2.6-month supply at the current sales pace, unchanged from July but down from 3.0 months in August 2020.
Broward Homeowners’ Home Equity Continues Surging 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 County single-family median prices increased 19% year-over-year in August 2021, increasing from $416,000 to $495,000. Existing condo median prices increased 10.1% year-over-year, from $199,900 to $220,000.
The greater share of Broward luxury sales in 2021 compared to a year ago 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 2.84% in August, down from 2.87% in July. The average commitment rate across all of 2020 was 3.11%. NAR Chief Economist Lawrence 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. As more sellers list properties in 2021, the increased inventory should ease the growth of median prices.
South Florida remains a bargain compared to other global cities. In Miami, $1 million can net homebuyers 85 square meters of prime property, according to Knight Frank’s 2021 The Wealth Report. Monaco (15 square meters), Hong Kong (23), London (31), New York (34) and Geneva (35) and others offer significantly less prime land for $1 million.
Broward Dollar Volume Totals $1.7 Billion, Showcasing Impact Housing Plays in Local 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. Miami dollar volume showcases the impact housing plays in the local economy.
Broward total dollar volume totaled $2.5 billion in August 2021. Single-family home dollar volume increased 26.6% year-over-year, from $883.9 million to $1.1 billion. Condo dollar volume increased 61.9% year-over-year, from $344.4 million to $557.7 million.
Broward Distressed Sales Keep Dropping, Reflecting Healthy Market
Only 0.9% of all closed residential sales in Broward were distressed last month, including REO (bank-owned properties) and short sales, compared to 2.5% in August 2020.
Total Broward distressed sales decreased 56.4% year-over-year in August 2021, from 78 to 34.
Short sales and REOs accounted for 0.2% and 0.8% year-over-year, respectively, of total Broward sales in August 2021. Short sale transactions decreased 68.2% year-over-year while REOs decreased 51.8%.
Nationally, distressed sales represented less than 1% of sales in August 2021, equal to August 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, fell 2.0% from July to a seasonally adjusted annual rate of 5.88 million in August. Year-over-year, sales dropped 1.5% from a year ago (5.97 million in August 2020).
Statewide, closed sales of single-family homes in August totaled 29,550, up slightly (0.2%) year-over-year, while existing condo-townhouse sales totaled 12,550, up 13.1% over August 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 August was $356,700, up 14.9% from August 2020 ($310,400), as prices increased in each region. This marks 114 straight months of year-over-year gains.
The statewide median sales price for single-family existing homes in August was $354,000, up 18% 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 $252,500, up 16.1% over August 2020. The median is the midpoint; half the homes sold for more, half for less.
Broward Real Estate Attracting Multiple Bids, Buyers Going Over-List Price
The median percent of original list price received for single-family homes was 100% in August 2021, up 3% from 97.1% last year. The median percent of original list price received for existing condominiums was 97.9%, up 3.1% from 95% last year.
The median number of days between listing and contract dates for Broward single-family home sales was 12 days, a 55.6% decrease from 27 days last year. The median time to sale for single-family homes was 54 days, a 23.9% decrease from 71 days last year.
The median number of days between the listing date and contract date for condos was 24 days, down 52.9% from 51 days. The median number of days to sale for condos was 68 days, a 24.4% decrease from 90 days.
Broward Cash Sales 73.2% More than National Figure in August 2021
Cash sales represented 38.1% of Broward closed sales in August 2021, compared to 27.2% in August 2020. About 22% 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 51.4% of all Broward existing condo sales and 23.4% of single-family transactions.
To access August 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