MIAMI — Martin County mid-market condominium sales and total inventory increased year-over-year in June 2022, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
“Stuart, the sailfish capital of the world, and Martin County real estate continues to draw home buyers searching for a small-town atmosphere in South Florida,” JTHS-MIAMI President Brad Westover said.
Martin Mid-Market Condo Sales Jump in June 2022
Martin County total home sales decreased 30.6% year-over-year, from 409 to 284, because of the rapid rise of mortgage rates from an average of 3% to 6% in six months and low inventory.
Martin single-family home sales decreased 32.7%, from 275 to 185. Martin condo transactions decreased 26.1%, from 134 to 99.
At the mid-market price level– $400K to $600K— Martin condo sales increased 100% to 14 transactions. Martin mid-market single-family sales decreased 25.3% to 62 transactions.
In June 2021, Martin sales surged because of 3% mortgage rates, higher supply (particularly in condos) and pandemic-driven demand.
In June 2022, Martin sales were impacted by higher rates of 5-6% when contracts were established in April and May and lower inventory.
Housing is sensitive to rising mortgage rates. 2018 marked the last time mortgage rates hit 5%.
South Florida: A Bargain in Comparison to Other Global Cities & Many U.S. Metros
Miami-Fort Lauderdale-West Palm Beach’s price per square meter is $3,170, far below at least 30 global cities and 13+ U.S. Metros including markets such as Hong Kong ($28,570), New York City ($17,191), San Francisco-Oakland-Hayward, CA ($8,250), Madrid, Spain ($6,173), Los Angeles-Long Beach-Glendale, CA ($4,740) and Seattle-Tacoma-Bellevue, WA ($4,460), according to National Association of REALTORS Profile of International Transactions in U.S. Residential Real Estate 2022.
Martin County single-family home median prices increased 20.4% year-over-year in June 2022, increasing from $490,000 to $590,000. Existing condo median prices increased 48.4% year-over-year, from $195,450 to $290,000.
While median prices have increased nationally so has house-buying power because of a long-run decline in rates before March 2022 and the slow, but steady growth of household income. The First American Real House Price Index (RHPI) measures the price changes of single-family properties throughout the U.S. adjusted for the impact of income and interest rate changes on consumer house-buying power over time and across the United States. According to the latest RHPI, Miami remains more than 20% under its RHPI peak.
Home prices are determined by supply and demand. Lower supply and higher demand create higher prices. Demand for Martin real estate is at all-time highs. Inventory for Martin single-family homes (2.2 months) and condos (1.8 months) are low. Also, one of the supports for home prices is rents and rents are rising strongly.
To battle national inflation, the Federal Reserve has aggressively raised rates this year and has plans for more hikes. High inflation and the Fed’s tightening policy are the main drivers behind rising mortgage rates.
Mortgage rates have risen from 3% in January to near 6% in July. On the same $300,000 mortgage, the monthly payment has risen from $1,265 in December to $1,800 today, according to NAR.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 5.52% in June, up from 5.23% in May. The average commitment rate across all of 2021 was 2.96%.
The mortgage rate is projected to land at 5.3% by 4Q 2022, according to NAR. That is still low compared to an all-time average of about 8% in the U.S.
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 Total Active Listings Surge in June 2022
Inventory of single-family homes increased 41.1% year-over-year in June 2022 from 304 active listings last year to 429 last month. Condominium inventory increased 46.1% year-over-year to 187 from 128 listings during the same period in 2021.
New listings of Martin single-family homes decreased 4.3% to 265 from 277. New listings of condominiums increased 5.8%, from 120 to 127.
Months’ supply of inventory for single-family homes increased 83.3% to 2.2 months year-over-year, which indicates a seller’s market. Inventory for existing condominiums increased 63.6% to 1.8 months, 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 June 2022 increased 42.6% year-over-year, from 432 to 616.
Nationally, total housing inventory at the end of June was 1,260,000 units, an increase of 9.6% from May and a 2.4% rise from the previous year (1.23 million). Unsold inventory sits at a 3.0-month supply at the current sales pace, up from 2.6 months in May and 2.5 months in June 2021.
Martin Real Estate Posts $31.9 Million Local Economic Impact Just in June 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 $112,500, according to NAR. Martin County sold 284 homes in June 2022 and had a local economic impact of $31.9 million.
Martin total dollar volume totaled $190 million in June 2022. Single-family home dollar volume decreased 31.1% year-over-year, from $217.4 million to $149.8 million. Condo dollar volume increased 3.9% year-over-year, from $34.2 million to $35.5 million.
Martin Distressed Sales Keep Dropping, Reflecting Healthy Market
Only 0% of all closed residential sales in Palm Beach were distressed last month, including REO (bank-owned properties) and short sales, compared to 0.2% in June 2021.
Total Martin distressed sales decreased 100% year-over-year in June 2022, from 1 to 0.
Martin’s percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented less than 1% of sales in June, essentially unchanged from May 2022 and June 2021.
Martin’s Percentage of Sales Continue to Outpace the Nation, State
In Florida, closed sales of single-family homes statewide totaled 28,296, down 17.2% year-over-year, while existing condo-townhouse sales totaled 11,796 down 27% over 15,491 in June 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 5.4% from May to a seasonally adjusted annual rate of 5.12 million in June. Year-over-year, sales fell 14.2% (5.97 million in June 2021).
The statewide median sales price for single-family existing homes was $420,000 up 19.7% 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 $324,900, up 26.4% 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 all housing types in June was $416,000, up 13.4% from June 2021 ($366,900), as prices increased in all regions. This marks 124 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 98.1% in June 2022, down 0.6% from last year. The median percent of original list price received for existing condominiums was 100%, up 1.9% from 98.1% last year.
The median number of days between listing and contract dates for Martin single-family home sales was 14 days, a 27.3% increase from 11 days last year. The median time to sale for single-family homes was 55 days, a 6.8% decrease from 59 days last year.
The median number of days between the listing date and contract date for condos was 11 days, down 42.1% from 19 days. The median number of days to sale for condos was 51 days, a 16.4% decrease from 61 days.
Martin Cash Sales More than Double the National Figure in June 2022
Cash sales represented 54.2% of Martin closed sales in June 2022, compared to 48.2% in June 2021. About 25% of U.S. home sales are made in cash, according to the latest NAR statistics.
Cash buyers are not deterred by rising rates. 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 59.6% of all Martin existing condo sales and 51.4% of single-family transactions.
To access June 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 230 international organizations worldwide. MIAMI REALTORS has launched its new YPN Global and will host the first-ever YPN Global Congress in early 2023 in Dubai. MIAMI has been selected to host the prestigious FIABCI World Congress on June 5-9, 2023. MIAMI’s official website is www.MiamiRealtors.com