MIAMI — Martin County existing condominium sales surged double digits in January 2022, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
“Martin County and Stuart offers that small-town atmosphere with the proximity of major cities in South Florida,” JTHS-MIAMI President Brad Westover said.
Martin County total home sales decreased 6.1% year-over-year in January 2022, from 246 sales to 231. Martin single-family home transactions decreased 18.4%, from 174 to 142. Martin existing condo sales increased 23.6%, from 72 to 89.
Martin Luxury Condo Sales Rise; Mid-Market Single-Family Home Sales Increase
Martin luxury ($1-million-and-up) condo transactions rose 300% year-over-year to 8 sales in January 2022. Martin single-family home luxury sales rose 30% year-over-year to 26 transactions in January 2022.
There are 1.9 months of supply in luxury single-family homes and 3.2 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 in South Florida.
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. back on Nov. 8 and that is leading to more international investment in South Florida – the No. 1 destination in the U.S. 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, along with all our amenities.
Martin single-family homes priced between $400K to $600K increased 10.2% year-over-year to 54 transactions in January 2022. Martin existing condo sales priced between $400K to $600K decreased 44.4%, increasing to 5 transactions.
More Inventory Arriving by Spring for Low-Supply/High-Demand Market
There is always a seasonal fade in inventory in the 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 15.2% to 212 from 250. New listings of condominiums decreased 8.1%, from 136 to 125.
Inventory of single-family homes decreased 62.3% year-over-year in January 2022 from 403 active listings last year to 152 last month. Condominium inventory dropped 66.3% year-over-year to 93 from 276 listings during the same period in 2021.
Months’ supply of inventory is down since July 2019 for single-family, reflecting strong demand. Months’ supply of inventory for single-family homes decreased 61.1% to 0.7 months, which indicates a seller’s market. Inventory for existing condominiums decreased 70.4% to 0.8 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 January 2022 decreased 63.9% year-over-year, from 679 to 245.
Nationally, total housing inventory the end of January amounted to 860,000 units, down 2.3% from December and down 16.5% from one year ago (1.03 million). Unsold inventory sits at a 1.6-month supply at the current sales pace, down from 1.7 months in December and from 1.9 months in January 2021.
Fed’s Decision for More Rate Hikes in 2022 Should Slow Growth of Median Prices
Rising median prices is a trend nationwide. Low inventory relative to high demand leads to prices rising. Locally, the greater share of South Florida luxury sales is part of the reason for the large year-over-year increase in median prices.
The Fed’s decision to raise rates and end bond buying in 2022 will accelerate demand for housing in the short term and eventually put downward pressure on median prices.
Martin County single-family median prices increased 16.3% year-over-year in January 2022, increasing from $449,900 to $523,175. Existing condo median prices increased 18.5% year-over-year, from $210,950 to $250,000.
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 3.45% in January, up from 3.10% in December. The average commitment rate across all of 2021 was 2.96%.
Should mortgage rates continue rising, 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.
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%.
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 Dollar Volume Totals $188 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. The total economic impact of a typical Florida home sale is $90,300, according to NAR.
Martin total dollar volume totaled $188 million in January 2022. Single-family home dollar volume increased 16% year-over-year, from $126.6 million to $146.8 million. Condo dollar volume increased 57.5% year-over-year, from $20.6 million to $32.5 million.
Martin Distressed Sales Keep Dropping, Reflecting Healthy Market
Only 0.4% of all closed residential sales in Martin were distressed last month, including REO (bank-owned properties) and short sales, compared to 0.4% in January 2021.
Total Martin distressed sales stayed even year-over-year at 1. Short sales and REOs accounted for 0% and 0.4% year-over-year, respectively, of total Martin sales in January 2022. Short sale transactions stayed even at 0 and REOs stayed even at 1.
Martin’s percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented less than 1% of sales in January 2022, equal to the percentage in January 2021.
National, State Sales Rise as More Inventory Expected to Arrive Later in the Year
Statewide, single-family home sales increased 1.4% year-over-year in January 2022, from 21,587 to 21,885. Florida existing condo sales increased 6.7% year-over-year in January 2022, from 9,608 to 10,252.
Nationally, total existing-home sales transactions completed transactions that include single-family homes, townhomes, condominiums and co-ops, climbed 6.7% from December to a seasonally adjusted annual rate of 6.50 million in January. Year-over-year, sales fell 2.3% (6.65 million in January 2021).
Statewide, the median sale price for single-family homes was $375,000 in January 2022, up 23% from 305,000 in January 2021. The median sale price for Florida existing condos rose 23.9% to $285,000 in January 2022 from $230,000 in January 2021.
Nationally, the median existing-home price for all housing types in January was $350,300, up 15.4% from January 2021 ($303,600), as prices rose in each region. This marks 119 consecutive months of year-over-year increases, the longest-running streak on record.
Martin Real Estate Attracting Multiple Bids, Buyers Going Over-List Price
The median percent of original list price received for single-family homes was 98.4% in January 2022, up 1.4% from 97% last year. The median percent of original list price received for existing condominiums was 100%, up 4.7% from 95.5% last year.
The median number of days between listing and contract dates for Martin single-family home sales was 13 days, a 48% decrease from 25 days last year. The median time to sale for single-family homes was 55 days, a 19.1% decrease from 68 days last year.
The median number of days between the listing date and contract date for condos was 10 days, down 74.4% from 39 days. The median number of days to sale for condos was 49 days, a 39.5% decrease from 81 days.
Martin Cash Sales 116.3% More than National Figure in January 2022
Cash sales represented 58.4% of Martin closed sales in January 2022, compared to 45.1% in January 2021. About 27% 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 65.2% of all Palm Beach existing condo sales and 54.2% of single-family transactions.
To access January 2022 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 54,000 primary members and 58,000 total members. 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
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