MIAMI — Martin County luxury single-family home sales rose year-over-year in November 2021, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Martin County total home sales decreased 22.6% year-over-year in November 2021, from 349 sales to 270 because of lack of inventory and Covid19 comps (stats are in comparison to major rebound demand last year). Martin single-family home transactions decreased 19.5%, from 241 to 194. Martin existing condo sales decreased 29.6%, from 108 to 76.
“Martin County and Stuart real estate offers that small-town atmosphere with incredible proximity to South Florida, one of the nation’s fastest-growing markets,” JTHS-MIAMI President Bill Mate said. “If Martin County had more inventory, it would have more sales.”
Martin Luxury Market in Demand as Northeast and West Coast Buyers Move to Mega Region
Martin County single-family luxury ($1-million-and-up) transactions increased 18.2% year-over-year to 26 sales in November 2021. Martin existing condo luxury ($1-million-and-up) sales stayed even at 3 transactions.
There are 2.4 months of supply in luxury single-family homes; 5.7 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 coming here for the vaccine and purchasing property.
Vaccinated foreigners were allowed to resume travel to the U.S. starting on Nov. 8 and that will lead to more international investment in South Florida – the No. 1 destination for foreign buyers. 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 single-family homes priced between $400K to $600K decreased 38.7% year-over-year to 38 transactions in November 2021. Martin existing condo sales priced between $400K to $600K stayed even at 3 transactions.
Low-Supply/High-Demand Market for Martin Real Estate
There is always a seasonal fade in inventory in the fall and winter. More inventory is expected to come to the market by spring 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. Expectation that interest rates will rise should continue to drive demand in the first quarter of 2022.
New listings of Martin single-family homes decreased 33.5% to 169 from 254. New listings of condominiums increased 20%, from 120 to 144.
Inventory of single-family homes decreased 53.6% year-over-year in November 2021 from 498 active listings last year to 231 last month. Condominium inventory decreased 47.8% year-over-year to 151 from 289 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 56.5% to 1 month, which indicates a seller’s market. Inventory for existing condominiums decreased 56.7% to 1.3 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 November 2021 decreased 51.5% year-over-year, from 787 to 382.
Nationally, total housing inventory the end of November amounted to 1.11 million units, down 9.8% from October and down 13.3% from one year ago (1.28 million). Unsold inventory sits at a 2.1-month supply at the current sales pace, a decline from both the prior month and from one year ago.
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 28% year-over-year in November 2021, increasing from $429,930 to $549,500. Existing condo median prices increased 4.3% year-over-year, from $208,450 to $217,500.
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 a 30-year, conventional, fixed-rate mortgage was 3.07 in November, equal to October’s rate. The average commitment rate across all of 2020 was 3.11%.
NAR Chief Economist Lawrence Yun expects the 30-year fixed mortgage rate to increase to 3.7% by the end of 2022. It would be still lower than the pre-pandemic rate of 4%.
Should mortgage rates resume their upward climb, home price growth is likely to slow in response. As more sellers list properties in 2021 and 2022, 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.
Martin Dollar Volume Totals $162 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. Martin dollar volume showcases the impact housing plays in the local economy.
Martin total dollar volume totaled $162 million in November 2021. Single-family home dollar volume decreased 11.5% year-over-year, from $155.5 million to $137.7 million. Condo dollar volume decreased 2.5% year-over-year, from $22.8 million to $22.3 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 0.6% in November 2020.
Total Martin distressed sales decreased 50% year-over-year in November 2021, from 2 to 1. Short sales and REOs accounted for 0% and 0.4% year-over-year, respectively, of total Martin sales in November 2021. Short sale transactions decreased 100% year-over-year while REOs increased 100%.
Nationally, distressed sales represented less than 1% of sales in November 2021, equal to the percentage in November 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, grew 1.9% from October to a seasonally adjusted annual rate of 6.46 million in November. Sales fell 2.0% from a year ago (6.59 million in November 2020).
Statewide, closed of sales single-family homes statewide last month totaled 27,541, up 4.3% year-over-year, while existing condo-townhouse sales totaled 11,598, down 5.4% from November 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 November was $353,900, up 13.9% from November 2020 ($310,800), as prices increased in each region, with the highest pace of appreciation in the South region. This marks 117 straight months of year-over-year increases, the longest-running streak on record.
The statewide median sales price for single-family existing homes in November was $364,900, up 19.6% 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 $273,270, up 19.9% over November 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 98.3% in November 2021, up 1.9% from 96.5% last year. The median percent of original list price received for existing condominiums was 100%, up 3.8% from 96.3% last year.
The median number of days between listing and contract dates for Martin single-family home sales was 12 days, a 60% decrease from 30 days last year. The median time to sale for single-family homes was 53 days, a 31.2% decrease from 77 days last year.
The median number of days between the listing date and contract date for condos was 11 days, down 59.3% from 27 days. The median number of days to sale for condos was 47 days, a 32.9% decrease from 70 days.
Martin Cash Sales More than Double National Figure in November 2021
Cash sales represented 48.9% of Martin closed sales in November 2021, compared to 38.4% in November 2020. About 24% 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 56.6% of all Martin existing condo sales and 45.9% of single-family transactions.
To access November 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 225 international organizations worldwide. MIAMI’s official website is www.miamirealtors.com