MIAMI — Martin County total home sales rose year-over-year at year-end 2021 compared to year-end 2020, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Martin County finished 2021 with 4,172 total home sales, which is 8.2% higher than year-end 2020.
“Martin County and Stuart continues to field strong demand for its incredible small-town atmosphere while still being connected to big-city offerings in the tri-county South Florida region,” JTHS-MIAMI President Brad Westover said.
Martin County Mid-Market Condo Sales Rise in December 2021
Martin County total home sales decreased 14.3% year-over-year in December 2021, from 377 sales to 323. Martin single-family home transactions decreased 19.8%, from 262 to 210 because of lack of inventory and Covid19 comps (stats are in comparison to major rebound demand last year). Martin existing condo sales decreased 1.7%, from 115 to 113.
Martin single-family homes priced between $400K to $600K decreased 15.4% year-over-year to 55 transactions in December 2021. Martin existing condo sales priced between $400K to $600K increased 100% to 14 transactions.
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.
New Listings for Single-Family Rise; Low-Supply/High-Demand Market for Broward
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% to 142 from 212. New listings of condominiums decreased 16.1%, from 93 to 78.
Inventory of single-family homes decreased 64.3% year-over-year in December 2021 from 490 active listings last year to 175 last month. Condominium inventory decreased 73.4% year-over-year to 76 from 286 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 63.6% to 0.8 months, which indicates a seller’s market. Inventory for existing condominiums decreased 75.9% to 0.7 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 December 2021 decreased 67.7% year-over-year, from 776 to 251.
Nationally, total housing inventory the end of December amounted to 910,000 units, down 18.0% from November and down 14.2% from one year ago (1.06 million). Unsold inventory sits at a 1.8-month supply at the present sales pace, down from 2.1 months in November and from 1.9 months in December 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 42.4% year-over-year in December 2021, increasing from $400,000 to $569,500. Existing condo median prices increased 28% year-over-year, from $212,500 to $272,000.
The greater share of Martin luxury sales in December 2021 compared to December 2020 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 3.10 in December, up from 3.07 in November. The average commitment rate across all of 2021 was 2.96%.
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 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 $238 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 $238 million in December 2021. Single-family home dollar volume increased 23.5% year-over-year, from $163 million to $201 million. Condo dollar volume increased 12.1% year-over-year, from $29 million to $33 million.
Martin Distressed Sales Keep Dropping, Reflecting Healthy Market
Only 0.6% of all closed residential sales in Martin were distressed last month, including REO (bank-owned properties) and short sales, compared to 0.5% in December 2020.
Total Martin distressed sales stayed even at 2 in December 2021. Short sales and REOs accounted for 0.3% and 0.3% year-over-year, respectively, of total Martin sales in December 2021. Short sale transactions stayed even and REOs stayed even year over year.
Nationally, distressed sales represented less than 1% of sales in December 2021, equal to the percentage in December 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, dropped 4.6% from November to a seasonally adjusted annual rate of 6.18 million in December. From a year-over-year perspective, sales waned 7.1% (6.65 million in December 2020).
Statewide, closed of sales single-family homes statewide last month totaled 29,988, down 1.6% from December 2020, while existing condo-townhouse sales totaled 12,789, a slight uptick of 0.3% year-over-year, according to Florida Realtors’ data.
Nationally, the median existing-home price for all housing types in December was $358,000, up 15.8% from December 2020 ($309,200), as prices rose in each region. The South witnessed the highest pace of appreciation. This marks 118 straight months of year-over-year increases, the longest-running streak on record.
The statewide median sales price for single-family existing homes in December was $373,990, up 21% from the previous year. Meanwhile, the statewide median price for condo-townhouse units was $285,000, up 23.9% over the year-ago figure. 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 98.6% in December 2021, up 1.4% from 97.2% last year. The median percent of original list price received for existing condominiums was 100%, up 4.4% from 95.8% last year.
The median number of days between listing and contract dates for Martin single-family home sales was 14 days, a 26.3% decrease from 19 days last year. The median time to sale for single-family homes was 57 days, a 12.3% decrease from 65 days last year.
The median number of days between the listing date and contract date for condos was 10 days, down 70.6% from 34 days. The median number of days to sale for condos was 51 days, a 32.9% decrease from 76 days.
Martin Cash Sales Nearly Double National Figure in December 2021
Cash sales represented 45.2% of Martin closed sales in December 2021, compared to 36.9% in December 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 55.8% of all Martin existing condo sales and 39.5% of single-family transactions.
To access December 2021, Year-End 2021 and Q4 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 102 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 53,000 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