MIAMI — Martin County single-family luxury home sales and total inventory increased for the third consecutive month in August 2022, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
“Stuart and Martin County real estate inventory is moving off all-time lows and more opportunities are arriving for homebuyers,” JTHS-MIAMI President Brad Westover said.
Martin County Single-Family Luxury Home Sales Increase
Martin County single-family luxury homes, priced at $1-million-and-above, increased 30% year-over-year to 39 transactions. The jump corresponds to a 58.1% jump in new listings by initial listing price at that price rage.
Local demand remains fueled by major companies such as hedge fund and securities firm Citadel moving to South Florida, the return of global buyers, demographic shifts with rising millennial homebuyer and senior populations, high percentage of workforce working remotely, surging rental prices and more.
Martin August 2022 total home sales decreased 16.8% year-over-year, from 333 to 277.
Martin single-family home sales decreased 17.6% year-over-year, from 227 in August 2021 to 187 in August 2022, due to lack of inventory and rising mortgage rates. Martin existing condo sales decreased 15.1% year-over-year, from 106 in August 2021 to 90 in August 2022, due to lack of inventory and rising mortgage rates.
In August 2021, Martin sales surged to a record-high because of 3% mortgage rates, higher supply (particularly in condos) and pandemic-driven demand.
In August 2022, Martin sales were impacted by higher rates of 5-6% when contracts were established in May and June and lower inventory.
The Fed, which voted for another increase to the Fed Funds rate today, is intent on slowing 40-year high inflation. While the Fed doesn’t set mortgage rates, it affects them through its conduct of monetary policy. As a result, the 30-year fixed mortgage rate has fluctuated from 2.93% to 6.28% in the last 52 weeks, an unprecedented range of volatility.
September 2022 marks the sixth consecutive month of 5% or higher mortgage rates. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 5.22% in August, down from 5.41% in July. The average commitment rate across all of 2021 was 2.96%.
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 33.3% year-over-year in August 2022, increasing from $495,000 to $660,000. Existing condo median prices increased 47.6% year-over-year, from $206,300 to $304,500.
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 (2.1 months) are low. Also, one of the supports for home prices is rents and rents are rising strongly.
Locally, the greater share of Martin luxury sales is also part of the reason for the large year-over-year increase in median prices.
Martin County Total Inventory Rises for Third Consecutive Month
Inventory of single-family homes increased 62.3% year-over-year in August 2022 from 302 active listings last year to 490 last month. Condominium inventory increased 56.3% year-over-year to 211 from 135 listings during the same period in 2021.
New listings of Martin single-family homes increased 9.6% to 229 from 209. New listings of condominiums increased 6.4%, from 110 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 90.9% to 2.1 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 August 2022 increased 60.4% year-over-year, from 437 to 701.
Nationally, total housing inventory at the end of August was 1,280,000 units, a decrease of 1.5% from July and unchanged from the previous year. Unsold inventory sits at a 3.2-month supply at the current sales pace – identical to July and up from 2.6 months in August 2021.
Martin Real Estate Posts $31.1 Million Local Economic Impact in August 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 277 homes in August 2022 and had a local economic impact of $31.1 million.
Martin total dollar volume totaled $193 million in August 2022. Single-family home dollar volume decreased 13.1% year-over-year, from $193 million to $158 million. Condo dollar volume decreased 19.59% year-over-year, from $29 million to $30 million.
Martin Distressed Sales Remain Low, Reflecting Healthy Market
Total Martin distressed sales decreased 100% year-over-year in August 2022, from 4 to 0. Short sales and REOs accounted for 0.4% and 0% year-over-year, respectively, of total Martin sales in August 2022. Short sale transactions decreased 100% year-over-year while REOs stayed even.
Only 0% of all closed residential sales in Martin were distressed last month, including REO (bank-owned properties) and short sales, compared to 1.2% in August 2021.
Martin’s percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented approximately 1% of sales in August, essentially unchanged from July 2022 and August 2021.
National, State Statistics
In Florida, closed sales of single-family homes statewide totaled 24,877, down 15.8% year-over-year, while existing condo-townhouse sales totaled 10,000, down 20.3% over 12,550 in August 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, notched a minor contraction of 0.4% from July to a seasonally adjusted annual rate of 4.80 million in August. Year-over-year, sales faded by 19.9% (5.99 million in August 2021).
The statewide median sales price for single-family existing homes was $407,000, up 15% 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 20.8% 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 August was $389,500, a 7.7% jump from August 2021 ($361,500), as prices ascended in all regions. This marks 126 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 95.5% in August 2022, down 3.2% from 98.7% last year. The median percent of original list price received for existing condominiums was 98%, down 2% from 100% last year.
The median number of days between listing and contract dates for Martin single-family home sales was 21 days, up from 12 days last year. The median time to sale for single-family homes was 63 days, a 14.5% increase from 55 days last year.
The median number of days between the listing date and contract date for condos was 16 days, up 128.6% from 7 days. The median number of days to sale for condos was 57 days, a 14% increase from 50 days.
Martin Cash Sales More than Double National Figure in August 2022
Cash sales represented 51.6% of Martin closed sales in August 2022, compared to 55.6% in August 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 57.7% of all Martin existing condo sales and 48.7% of single-family transactions.
To access August 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 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 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