MIAMI — Martin County mid-market condo sales rose in September 2021 as record-low inventory, rather than a decline in demand, slowed down total sales, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Sales in the mid-market, homes priced between $400K-$600K, rose 66.7% year-over-year. Martin County total home sales decreased 17.7% year-over-year in September 2021, from 373 sales to 307. Martin single-family home transactions decreased 25%, from 252 to 189. Martin existing condo sales decreased 2.5%, from 121 to 118.
“If Martin County had more inventory, it would have had significantly more sales,” JTHS-MIAMI President Bill Mate said. “The overall trend line of Martin County sales has increased over the past two years, and more inventory is expected to come to the market later this year.”
More Inventory Expected to Arrive in 2022 for Low-Supply/High-Demand Market
Lack of inventory in certain price points is impacting sales, particularly for single-family homes. More inventory is expected to come to the market in 2022 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.
New listings of Martin single-family homes decreased 15.6% to 217 from 257. New listings of condominiums decreased 32.4%, from 142 to 96.
Inventory of single-family homes decreased 46.1% year-over-year in September 2021 from 538 active listings last year to 290 last month. Condominium inventory decreased 60.9% year-over-year to 117 from 299 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 53.8% to 1.2 months, which indicates a seller’s market. Inventory for existing condominiums decreased 69.7% to 1 month, 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 September 2021 decreased 51.4% year-over-year, from 837 to 407.
Nationally, total housing inventory at the end of September amounted to 1.27 million units, down 0.8% from August and down 13.0% from one year ago (1.46 million). Unsold inventory sits at a 2.4-month supply at the present sales pace, down 7.7% from August and down from 2.7 months in September 2020.
Martin 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.
Martin County single-family median prices increased 12.2% year-over-year in September 2021, increasing from $405,444 to $455,000. Existing condo median prices increased 21.3% year-over-year, from $195,000 to $236,450.
The greater share of Martin 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 2.90% in September, up from 2.84% in August. The average commitment rate across all of 2020 was 3.11%.
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.
Miami 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.
Martin Dollar Volume Totals $160 Million, 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. Broward dollar volume showcases the impact housing plays in the local economy.
Martin total dollar volume totaled $160 million in September 2021. Single-family home dollar volume decreased 8.6%% year-over-year, from $132 million to $121 million. Condo dollar volume increased 31.9% year-over-year, from $27 million to $36 million.
Martin Distressed Sales Keep Dropping, Reflecting Healthy Market
Only 0.3% of all closed residential sales in Martin were distressed last month, including REO (bank-owned properties) and short sales, compared to 0.5% in September 2020.
Total Martin distressed sales decreased 50% year-over-year in September 2021, from 2 to 1. Short sales and REOs accounted for 0.3% and 0.5% year-over-year, respectively, of total Martin sales in September 2021. Short sale transactions increased 100% year-over-year while REOs decreased 100%.
Nationally, distressed sales represented less than 1% of sales in September, equal to the percentage seen a month prior and equal to September 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, rose 7.0% from August to a seasonally adjusted annual rate of 6.29 million in September. However, sales decreased 2.3% from a year ago (6.44 million in September 2020).
Statewide, closed sales of single-family homes in September totaled 28,302, down 1.3% year-over-year, while existing condo-townhouse sales totaled 11,845, up 4.9% over September 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 September was $352,800, up 13.3% from September 2020 ($311,500), as prices rose in each region. This marks 115 straight months of year-over-year increases.
The statewide median sales price for single-family existing homes in September was $355,000, up 18.3% 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 $255,000, up 17.2% over September 2020. The median is the midpoint; half the homes sold for more, half for less.
Martin Real Estate Attracting Multiple Bids, Buyers Going Over-List Price
The median percent of original list price received for single-family homes was 98.2% in September 2021, up 1.6% from 96.7% last year. The median percent of original list price received for existing condominiums was 100%, up 4.5% from 95.7% last year.
The median number of days between listing and contract dates for Martin single-family home sales was 16 days, a 36% decrease from 25 days last year. The median time to sale for single-family homes was 56 days, a 16.4% decrease from 67 days last year.
The median number of days between the listing date and contract date for condos was 10 days, down 71.4% from 35 days. The median number of days to sale for condos was 50 days, a 32.4% decrease from 74 days.
Martin Cash Sales 96.9% More than National Figure in September 2021
Cash sales represented 45.3% of Martin closed sales in September 2021, compared to 31.9% in September 2020. About 23% 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 57.6% of all Martin existing condo sales and 37.6% of single-family transactions.
To access September 2021 Martin 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