MIAMI — Martin County existing condo sales rose in 3Q 2021, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Martin County total home sales decreased 9.5% year-over-year in 3Q 2021, from 1,111 to 1,006. Martin single-family home transactions decreased 13.8%, from 780 to 672 due to low inventory. Martin existing condo sales rose 0.9%, from 331 to 334.
“Like all of South Florida, Martin County remains in a high-demand/low inventory market ,” JTHS-MIAMI President Bill Mate said. “If Martin County had more inventory, it would have significantly more sales.”
Transactions showed strong gains when comparing 3Q 2021 to 3Q 2019. Martin total home sales jumped 16.8% when comparing 3Q 2019 to 3Q 2021, from 861 to 1,006 transactions. Condo sales (up 24.6%) and single-family home sales (up 13.3%) rose from 3Q 2019 to 3Q 2021.
Lack of inventory in certain price points is impacting sales, particularly for single-family homes. Increased housing starts and more sellers listing properties in 2022 should help alleviate the lack of supply.
Martin Luxury Sales Jump as Northeast and West Coast Buyers Move to Mega Region
Martin County single-family home luxury ($1-million-and-up) transactions increased 2.7% year-over-year to 77 transactions in 3Q 2021. Martin County condo luxury sales increased 100% to 11 transactions in 3Q 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.
With global vaccinations rising and unstable political situations around the world, South Florida is seeing an increase in foreign homebuyers. Global sales are set to surge even more now that vaccinated foreigners are allowed to resume travel to the U.S. starting November 8. 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.
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 home median prices rose 15.9% year-over-year, from $410,000 to $475,000. Martin existing condo median prices rose 18% year-over-year, from $182,250 to $215,000.
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 2022, 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 $584.2 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. Miami dollar volume showcases the impact housing plays in the local economy.
Martin single-family home dollar volume rose 3.2%, from $473.8 million to $488.7 million. Martin existing condo dollar volume increased 32.5% to $95.5 million.
Non-distressed sales comprised about 99.3% of all closed residential sales in 3Q 2021 vs. 99.5% in 3Q 2020. Only 0.7% of all closed residential sales in Martin were distressed in 3Q 2021, including REO (bank-owned properties) and short sales, compared to 0.5% in 3Q 2020.
Short sales and REOs accounted for 0.4% and 0.3%, respectively, of total Martin sales in 3Q 2021. Short sale transactions increased 400% year-over-year while REOs fell 50%.
Lower mortgage rates made home purchases more affordable in 2021. According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage declined to 2.98% from 3.09% last week. Last year at this time the rate stood at 2.84%.
Robust Demand for Housing Statewide, Nationally
Statewide, closed sales of single-family homes statewide totaled 88,592 in 3Q 2021, down 1.1% from the 3Q 2020 level; closed sales of condo-townhouse properties totaled 37,876, up 13% compared to the same quarter a year 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 the third quarter was still up 18.4% year-over-year (to $355,000), while the median condo and townhouse price was up 18.6% (to $254,900) compared to a year ago. The median is the midpoint; half the homes sold for more, half for less.
Nationally, median sales price of single-family existing homes climbed 16% from one year ago to $363,700, a slower pace in comparison to the preceding quarter (22.9%). All four major regions had double-digit year-over-year price growth, led by the Northeast (17.5%), followed by the South (14.9%), the Midwest (10.7%), and the West (10.3%).
High-Demand/Low Inventory Market for Martin County Real Estate
New listings for single-family homes decreased 12.1 % year-over-year in 3Q 2021, from 767 to 674. New listings for condos decreased 21.1% year-over-year in 3Q 2021, from 398 to 314.
At the current sales pace, the number of active listings represents 1.2 months of inventory for single-family homes (seller’s market) and 1 for condominiums (seller’s market). A balanced market between buyers and sellers offers between six and nine months of supply inventory.
Martin real estate had 407 active listings in 3Q 2021, a 51.4% drop from the 837 listings at the same time last year. The inventory for single-family homes dropped 46.1%, from 538 to 290. Martin existing condo inventory decreased 60.9%, from 299 to 117.
Martin Real Estate Attracting Multiple Bids, Buyers Going Over-List Price
With low inventory, particularly for single-family homes, Martin properties are attracting multiple bids and buyers going over-list price. The median percent of original list price received was 98.8% for single-family homes and 100% for condos in 3Q 2021.
The median time to contract for single-family home listings was 14 days, a 63.2% drop from 38 days in 3Q 2020. The median time to sale for single-family homes decreased 30.9%, from 81 days to 56.
The median time to contract for existing condos was 10 days, a 80.4% drop from 51 days in 3Q 2020. The median time to sale for existing condos decreased 39.1%, from 87 to 53.
Martin Sales More than Double National Figure in 3Q 2021
Cash sales represented 47.1% of Martin closed sales in 3Q 2021, compared to 33.9% in 3Q 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 are able to buy more with their profits from real estate sales.
Cash sales accounted for 57.5% of all Palm Beach County existing condo sales and 41.9% of single-family transactions.
3Q 2021 Martin 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