Martin County total active listings rose year-over-year for the second consecutive month in July 2022, bringing much-needed inventory to the market, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
“Stuart real estate and Martin County real estate represent the diversity of places to live we have here in South Florida,” JTHS-MIAMI President Brad Westover said. “The small-town atmosphere and fishing lifestyle make this area one-of-a-kind.”
Martin County Total Home Sales Decrease
Martin’s July 2022 total home sales decreased year-over-year when compared to July 2021 –one of the best sales months in South Florida real estate history. July 2022 sales were down year-over-year, from 366 to 214.
Single-family home sales decreased 46.9% year-over-year, from 256 in July 2021 to 136 in July 2022, due to lack of inventory and rising mortgage rates. Martin existing condo sales decreased 29.1% year-over-year, from 110 in July 2021 to 78 in July 2022, due to lack of inventory and rising mortgage rates.
In July 2021, Martin sales surged to a record-high because of 3% mortgage rates, higher supply (particularly in condos) and pandemic-driven demand.
In July 2022, Martin sales were impacted by higher rates of 5-6% when contracts were established in May and June and lower inventory.
Local demand remains fueled by U.S. individuals and companies moving to South Florida, surging demand from global buyers, demographic shifts with rising millennial homebuyer and senior populations, high percentage of workforce still working remotely, surging rental prices and more.
A recent Redfin report highlighted the Miami Mega Region as the No. 1 U.S. metro where homebuyers want to relocate.
With global vaccinations rising and unstable political situations around the world, South Florida is seeing an increase in foreign homebuyers.
Vaccinated foreigners were allowed to resume travel to the U.S. back in November 2021 and that continues to lead to more international investment in South Florida – the No. 1 destination in the U.S. for foreign buyers. Global buyers purchase in Miami for myriad reasons including that 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 inclusion of all cultures, along with all our amenities.
South Florida: A Bargain in Comparison to Other Global Cities & 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 18.8% year-over-year in July 2022, increasing from $475,500 to $565,000. Existing condo median prices increased 35.8% year-over-year, from $212,000 to $288,000.
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. West Palm Beach (No. 5) and Miami (No. 6) ranked among the Top-10 U.S. metros where homebuyer income grew the most during the pandemic via Aug. 2022 Redfin report.
Home prices are determined by supply and demand. Lower supply and higher demand create higher prices. Inventory for Martin single-family homes (2.6 months) and condos (2 months) are low. Also, one of the supports for home prices is rents and rents are rising strongly.
Locally, the greater share of South Florida luxury sales is also part of the reason for the large year-over-year increase in median prices.
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 5.41% in July, down from 5.52% in June. 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 Total Active Listings Rise: A Great Sign for our High-Demand Market
Inventory of single-family homes increased 61.6% year-over-year in July 2022 from 305 active listings last year to 493 last month. Condominium inventory increased 51.1% year-over-year to 198 from 131 listings during the same period in 2021.
New listings of Martin single-family homes increased 6% to 263 from 248. New listings of condominiums increased 8.3%, from 108 to 117.
Months’ supply of inventory for single-family homes increased 116.7% to 2.6 months year-over-year, which indicates a seller’s market. Inventory for existing condominiums increased 81.8% to 2 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 July 2022 increased 58.5% year-over-year, from 436 to 691.
Nationally, total housing inventory at the end of July was 1,310,000 units, an increase of 4.8% from June and unchanged from the previous year. Unsold inventory sits at a 3.3-month supply at the current sales pace, up from 2.9 months in June and 2.6 months in July 2021.
Martin Real Estate Posts $24.1 Million Local Economic Impact Just in July 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 214 homes in July 2022 and had a local economic impact of $24.1 million.
Martin total dollar volume totaled $135.6 million in July 2022. Single-family home dollar volume decreased 36.5% year-over-year, from $173.9 million to $110.4 million. Condo dollar volume decreased 20.4% year-over-year, from $29.4 million to $23.4 million.
Martin Distressed Sales Keep Dropping, Reflecting Healthy Market
Martin had 0 distressed sales last month, including REO (bank-owned properties) and short sales, compared to 0.5% in July 2021. In 2009, distressed sales comprised 70% of Miami sales.
Total Martin distressed sales decreased 100% year-over-year in July 2022, from 2 to 0. Short sales and REOs accounted for 0% and 0% year-over-year, respectively, of total Martin sales in July 2022. Short sale transactions decreased 100% year-over-year while REOs decreased 100%.
Martin’s percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented approximately 1% of sales in July, essentially unchanged from June 2022 and July 2021.
State and National Statistics
In Florida, closed sales of single-family homes statewide totaled 23,705, down 22.9% year-over-year, while existing condo-townhouse sales totaled 9,341 down 30.7% over 13,481 in July 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, slipped 5.9% from June to a seasonally adjusted annual rate of 4.81 million in July. Year-over-year, sales fell 20.2% (6.03 million in July 2021).
The statewide median sales price for single-family existing homes was $412,303 up 16.1% 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 $305,000, up 20.6% 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 $403,800, up 10.8% from July 2021 ($364,600), as prices increased in all regions. This marks 125 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 97.5% in July 2022, down from 100% in July 2021. The median percent of original list price received for existing condominiums was 100%, up 2% from 98% last year.
The median number of days between listing and contract dates for Martin single-family home sales was 14 days, up 16.7% from 12 days last year. The median time to sale for single-family homes was 54 days, down 1.8% from 55 days.
The median number of days between the listing date and contract date for condos was 11 days, down 38.9% from 18 days. The median number of days to sale for condos was 54 days, a 6.9% decrease from 58 days.
Martin Cash Sales More than Double the National Figure in July 2022
Cash sales represented 53.7% of Martin closed sales in July 2022, compared to 40.9% in July 2021. About 24% 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 66.7% of all Martin existing condo sales and 46.3% of single-family transactions.
To access July 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. The MIAMI Commercial Conference will be held Oct. 7, 2022 at the Biltmore Hotel in Coral Gables and the 26th annual MIAMI Global Real Estate Congress will be held Nov. 6-8, 2022 at the Biltmore Hotel in Coral Gables. MIAMI REALTORS has launched its new YPN Global and will host the first-ever YPN Global Congress on Feb. 12-15, 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