MIAMI — Martin County existing condominium mid-market sales rose in March 2022, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
“The smalltown lifestyle of Martin County and Stuart real estate continues to see high demand and low inventory,” JTHS-MIAMI President Brad Westover said.
Martin County Mid-Market Condo Sales Rise in March 2022
Martin existing condo sales priced between $400K to $600K increased 150% year-over-year to 15 transactions in March 2022. Martin County single-family homes priced between $400K to $600K decreased 44% year-over-year to 47 transactions in March 2022.
Martin total home sales decreased 31.1% year-over-year, from 431 to 297, because of low inventory.
Martin County existing condominium sales decreased 27.6% year-over-year, from 134 to 97. Martin single-family transactions decreased 32.7% year-over-year, from 297 to 200.
Rising Mortgage Rates Should Eventually Slow Price Growth Nationally, in Broward
Rising median prices is a trend nationwide. Low inventory relative to high demand leads to prices rising. Locally, the greater share of luxury sales over the past year is part of the reason for the large year-over-year increase in median prices.
The Federal Reserve raised rates for the first time in three years in February and has plans for six more rate hikes by year’s end. Mortgage rates have increased this month to near 5%, its highest point in more than a decade.
Home sales and prices from March were not impacted by this recent rise. Many of the financed sales that closed in March had their rates established in January and February when rates were in mid to high 3%.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.17% in March, up from 3.76% in February. The average commitment rate across all of 2021 was 2.96%.
The mortgage rate is projected to land at about 4.5% at year-end 2022, according to NAR. That is still low compared to an all-time average of about 8% in the U.S.
The long term the hope is higher rates will lead to more days on the market (gives buyers more choices). Higher rates will eventually lead to a moderation of the growth rate of pricing. With the growth rate of pricing cooling, total inventory could grow later. Historically, inventory expands six months after rates rise, but today’s market is unlike any other.
Martin County single-family median prices increased 13.5% year-over-year in March 2022, increasing from $489,000 to $555,000. Existing condo median prices increased 23.9% year-over-year, from $212,250 to $263,000.
More Inventory to Arrive Later this Year for Low-Supply/High-Demand Market
Inventory tends to rise in the spring and summer and then it fades in the fall and winter.
Historically in the U.S., total inventory tends to expand six months after mortgage rates begin to rise. A new study by Realtor.com detailed that 64% of possible sellers intend to list their home by October 2022.
New listings of Martin single-family homes decreased 14.9% to 262 from 308. New listings of condominiums increased 5.3%, from 151 to 159.
Inventory of single-family homes decreased 34.4% year-over-year in March 2022 from 340 active listings last year to 223 last month. Condominium inventory dropped 44.5% year-over-year to 117 from 211 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 33.3% to 1 months, which indicates a seller’s market. Inventory for existing condominiums decreased 50% to 1 month, which also 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 March 2022 decreased 38.3% year-over-year, from 551 to 340.
Nationally, total housing inventory at the end of March totaled 950,000 units, up 11.8% from February and down 9.5% from one year ago (1.05 million). Unsold inventory sits at a 2.0-month supply at the present sales pace, up from 1.7 months in February and down from 2.1 months in March 2021.
Martin Real Estate Had a $26.8 Million Local Economic Impact Just in March 2022
Every time a home is sold it impacts the economy: income generated from real estate industries (commissions, fees and moving expenses), expenditures related to home purchase (furniture and remodeling expenses), multiplier of housing related expenditures (income earned as a result of a home sale is re-circulated into the economy) and new construction (additional home sales induce added home production).
The total economic impact of a typical Florida home sale is $90,300, according to NAR. Martin County sold 297 homes in March 2022 and therefore had a local economic impact of $26.8 million.
Martin total dollar volume totaled $188 million in March 2022. Single-family home dollar volume decreased 38.97% year-over-year, from $250 million to $152 million. Condo dollar volume decreased 21.47% year-over-year, from $40 million to $31 million.
Martin Distressed Sales Keep Dropping, Reflecting Healthy Market
Only 0.7% of all closed residential sales in Martin were distressed last month, including REO (bank-owned properties) and short sales, lower than the 0.5% in March 2021.
Total Martin distressed sales stayed even at 2 year over year. Short sales and REOs accounted for 0% and 0.7% year-over-year, respectively, of total Martin sales in March 2022. Short sale transactions stayed even year-over-year while REOs stayed even.
Nationally, distressed sales represented less than 1% of sales in March 2022, equal to the percentage in March 2021.
State and National Statistics
In Florida, closed sales of single-family homes statewide totaled 30,793, down 6.2% year-over-year, while existing condo-townhouse sales totaled 14,631, down 11.4% over March 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, dipped 2.7% from February to a seasonally adjusted annual rate of 5.77 million in March. Year-over-year, sales fell 4.5% (6.04 million in March 2021).
The statewide median sales price for single-family existing homes was $396,558, up 21.3% 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 $308,000, up 27.3% 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 March was $375,300, up 15.0% from March 2021 ($326,300), as prices rose in each region. This marks 121 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 March 2022, up 2.4% from 97.7% last year. The median percent of original list price received for existing condominiums was 100%, up 5.4% from 94.9% last year.
The median number of days between listing and contract dates for Martin single-family home sales was 9 days, a 57.1% decrease from 21 days last year. The median time to sale for single-family homes was 49 days, a 23.4% decrease from 64 days last year.
The median number of days between the listing date and contract date for condos was 6 days, down 81.3% from 32 days. The median number of days to sale for condos was 42 days, a 41.7% decrease from 72 days.
Martin Cash Sales More than Double National Figure in March 2022
Cash sales represented 59.3% of Martin closed sales in March 2022, compared to 52.2% in March 2021. About 28% of U.S. home sales are made in cash, according to the latest NAR statistics.
The high percentage of cash buyers reflects Miami’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 73.2% of all Palm Beach existing condo sales and 52.5% of single-family transactions.
To access March 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 (MIAMI) 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: MIAMI RESIDENTIAL, MIAMI COMMERCIAL; BROWARD-MIAMI, a division of MIAMI Realtors; JTHS-MIAMI, a division of MIAMI Realtors in the Jupiter-Tequesta-Hobe Sound area; MIAMI YPN, our Young Professionals Network Council; and the award-winning MIAMI Global Council. MIAMI REALTORS represents over 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 226 international organizations worldwide. MIAMI REALTORS has just launched its new YPN Global and will host the first-ever YPN Global Congress in March 2023 in Dubai. MIAMI has just been selected to host the prestigious FIABCI World Congress in June 2023. MIAMI’s official website is www.MiamiRealtors.com