MIAMI — Martin County luxury single-family home sales rose year-over-year in February 2022, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
“Demand for Martin County and the Stuart small-town lifestyle remains high; it’s just inventory is low,” JTHS-MIAMI President Brad Westover said. “We expect more inventory during the spring homebuying season.”
Martin County total home sales decreased 16.8% year-over-year in February 2022, from 310 sales to 258, because of low inventory. Martin single-family home transactions decreased 19.8%, from 207 to 166. Martin existing condo sales decreased 10.7%, from 103 to 92.
Martin Luxury Single-Family Home Sales Surge 29.2%; Mid-Market $400-600K Transactions Jump Also
Martin single-family luxury transactions increased 29.2% year-over-year to 31 sales in February 2022. Martin existing condo luxury ($1-million-and-up) sales stayed even with three transactions.
Homebuyers leaving tax-burdened states to purchase in Florida (no state income tax), new-to-market firms moving here, low interest rates, the appeal of property as an inflation hedge, rising wages and accrued savings in lockdowns, strong equity market performance, a reassessment of housing needs and lifestyles because of the pandemic and expansion of remote work are all factors driving South Florida real estate demand.
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 in November 2021 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 existing condo sales priced between $400K to $600K increased 12.5% year-over-year to 9 transactions in February 2022. Martin single-family homes priced between $400K to $600K decreased 7.1% year-over-year to 52 transactions in February 2022.
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 this spring as potential home sellers become more comfortable listing and showing their homes. Rising interest rates should also continue to drive demand in the first quarter of 2022.
New listings of Martin single-family homes decreased 16.8% to 228 from 274. New listings of condominiums increased 2.4%, from 127 to 130.
Inventory of single-family homes decreased 49.1% year-over-year in February 2022 from 350 active listings last year to 178 last month. Condominium inventory dropped 57.5% year-over-year to 107 from 252 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 46.7% to 0.8 months, which indicates a seller’s market. Inventory for existing condominiums decreased 64% to 0.9 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 February 2022 decreased 52.7% year-over-year, from 602 to 285.
Nationally, total housing inventory at the end of February totaled 870,000 units, up 2.4% from January and down 15.5% from one year ago (1.03 million). Unsold inventory sits at a 1.7-month supply at the current sales pace, up from the record-low supply in January of 1.6 months and down from 2.0 months in February 2021.
Fed Raised Rates on Wednesday and Announced Plans for More Rate Hikes: Decisions Should Eventually Slow Price Growth Nationally, in Miami
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 over the past year is part of the reason for the large year-over-year increase in median prices.
On Wednesday, the Federal Reserve raised rates for the first time in three years and announced plans for six more rate hikes by year’s end to curb national inflation.
The decision will accelerate demand for housing in the short term and eventually put downward pressure on median prices. The belief is that with mortgage rates rising in the coming months, the high demand for housing will be moderated and the growth of median prices will slow. As more sellers list properties in 2022, the increased inventory should also ease the growth of median prices.
Martin County single-family median prices increased 24.4% year-over-year in February 2022, increasing from $419,900 to $522,000. Existing condo median prices increased 28.3% year-over-year, from $208,500 to $267,500.
Mortgage rates remain low historically and are making home purchases more affordable. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 3.76% in February, up from 3.45% in January. 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%.
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.
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 $202 Million, Showcasing Impact Housing Plays in Local Economy
Throughout the pandemic, housing has proved how it can lift the economy nationally and locally. For every two homes sold in the U.S., one job is created. The total economic impact or multiplier effect of a typical Florida home sale is $90,300, according to NAR.
Martin total dollar volume totaled $202 million in February 2022. Single-family home dollar volume increased 12.93% year-over-year, from $148 million to $168 million. Condo dollar volume increased 25.87% year-over-year, from $25 million to $32 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, which was the same figure in February 2021.
Total Martin distressed sales stayed even at 1. Short sales and REOs accounted for 0% and 0.3% year-over-year, respectively, of total Martin sales in February 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 February 2022, equal to the percentage in February 2021.
High-Demand/Low Inventory Market for the Nation and State
Last month, closed sales of single-family homes statewide totaled 23,661, down 1.2% year-over-year, while existing condo-townhouse sales totaled 10,975, down 3.6% over February 2021. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, total existing-home sales transactions completed transactions that include single-family homes, townhomes, condominiums and co-ops, sank 7.2% from January to a seasonally adjusted annual rate of 6.02 million in February. Year-over-year, sales decreased 2.4% (6.17 million in February 2021).
The statewide median sales price for single-family existing homes was $381,481, up 21.1% 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 $290,000, up 24.3% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Nationally, the median existing-home price for all housing types in February was $357,300, up 15.0% from February 2021 ($310,600), as prices grew in each region. This marks 120 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 100% in February 2022, up 3.8% from 96.3% last year. The median percent of original list price received for existing condominiums was 100%, up 4% from 96.2% last year.
The median number of days between listing and contract dates for Martin single-family home sales was 11 days, a 67.6% decrease from 34 days last year. The median time to sale for single-family homes was 51 days, a 37% decrease from 81 days last year.
The median number of days between the listing date and contract date for condos was 8 days, down 83.7% from 49 days. The median number of days to sale for condos was 43 days, a 50% decrease from 86 days.
Martin Cash Sales Nearly Double the National Figure in February 2022
Cash sales represented 48.1% of Martin closed sales in February 2022, compared to 47.1% in February 2021. About 25% 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 72.8% of all Martin existing condo sales and 34.3% of single-family transactions.
To access February 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 nearly 60,000 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 229 international organizations worldwide. MIAMI’s official website is www.miamirealtors.com
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