MIAMI — Martin County single-family luxury home sales rose for the second consecutive month in September 2022, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
“Stuart real estate and the Martin County market remains resilient even with rising mortgage rates and now we’re seeing more inventory, especially on the single-family side, come to the market,” JTHS-MIAMI President Brad Westover said.
Martin County Single-Family Luxury Home Sales Increase Again
Martin County single-family luxury homes, priced at $1-million-and-above, increased 10.5% year-over-year to 21 transactions.
As far total sales compared to a record September 2021, Martin County September 2022 transactions decreased 20.5% year-over-year, from 307 to 244, because of rising mortgage rates and low inventory.
Martin single-family home sales decreased 15.3%, from 189 to 160. Martin condo transactions declined 28.8%, from 118 to 84.
Fed, which voted for another Fed Funds rate increase in September, 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 2.99% to 6.92% in the last 52 weeks, an unprecedented range of volatility.
September 2022 marks the seventh 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 6.11% in September, up from 5.22% in August. The average commitment rate across all of 2021 was 2.96%.
South Florida’s Real Estate’s Strong Market Fundamentals Vs. High Rates, Low Inventory
- Global companies, such as the $54 billion-dollar hedge fund Citadel, continue relocating to South Florida, bringing high-paying jobs.
- Demand from homebuyers from high-tax, high-density states remain high as Florida driver license swaps are up double digits for relocating Californians and New Yorkers.
- Global buyers, who because of pandemic protocols haven’t been able to purchase as they are accustomed to in recent years, are returning in mass to the No. 1 destination for global homebuyers. This month, South Florida was ranked as the 1 destination in the world for foreign investment by Financial Times.
- Martin’s percentage of cash buyers (42.6%) is significantly higher than the national average (25%).
- Demographic shifts (Millennials reaching prime home-buying age and surging senior/retiree population growth)
- High percentage of workforce working remotely favors the South Florida market, where many have relocated to live, work and play because of our lifestyle, weather and more.
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 21.1% year-over-year in September 2022, increasing from $455,000 to $551,000. Existing condo median prices increased 26.5% year-over-year, from $236,450 to $299,000.
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 (2.7 months) and condos (2.3 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.
Martin County Total Inventory Rises for Fourth Consecutive Month
Inventory of single-family homes increased 67.6% year-over-year in September 2022 from 290 active listings last year to 486 last month. Condominium inventory increased 85.5% year-over-year to 217 from 117 listings during the same period in 2021.
New listings of Martin single-family homes decreased 20.3% to 173 from 217. New listings of condominiums increased 1%, from 96 to 97.
Months’ supply of inventory for single-family homes increased 125% to 2.7 months year-over-year, which indicates a seller’s market. Inventory for existing condominiums increased 130% to 2.3 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 September 2022 increased 72.7% year-over-year, from 407 to 703.
Nationally, total housing inventory at the end of September was 1.25 million units, which was down 2.3% from August and 0.8% from the previous year. Unsold inventory sits at a 3.2-month supply at the current sales pace – unchanged from August and up from 2.4 months in September 2021.
Martin Real Estate Posts $27.5 Million Local Economic Impact in September 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 244 homes in September 2022 and had a local economic impact of $27.5 million.
Martin total dollar volume totaled $150 million in September 2022. Single-family home dollar volume increased 0.1% year-over-year, from $121.3 million to $121.4 million. Condo dollar volume decreased 26% year-over-year, from $36.8 million to $27.3 million.
Martin Distressed Sales Remain Low, Reflecting Healthy Market
Total Martin distressed sales increased 100% in September 2022, from 1 to 2. Short sales and REOs accounted for 0 and 0.8% year-over-year, respectively, of total Martin sales in September 2022. Short sale transactions decreased 100% year-over-year while REOs increased 100%.
Only 0.8% of all closed residential sales in Martin were distressed last month, including REO (bank-owned properties) and short sales, compared to 0.3% in September 2021.
Martin’s percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented approximately 2% of sales in September, a marginal increase from 1% in September 2021.
State and National Sales
In Florida, closed sales of single-family homes statewide totaled 20,099 in September 2022, down 29% year-over-year, while existing condo-townhouse sales totaled 8,406, down 29%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, total existing-home sales transactions retracted 1.5% from August to a seasonally adjusted annual rate of 4.71 million in September. Year-over-year, sales waned by 23.8% (down from 6.18 million in September 2021).
The statewide median sales price for single-family existing homes was $403,880, up 13.8% 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 $307,250, up 20.5% 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 September was $384,800, an 8.4% jump from September 2021 ($355,100), as prices climbed in all regions. This marks 127 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 96% in September 2022, down 2.2% from 98.2% last year. The median percent of original list price received for existing condominiums was 97.1%, down 2.9% from 100% last year.
The median number of days between listing and contract dates for Martin single-family home sales was 17 days, up from 16 days last year. The median time to sale for single-family homes was 61 days, an 8.9% increase from 56 days last year.
The median number of days between the listing date and contract date for condos was 15 days, up 50% from 10 days. The median number of days to sale for condos was 56 days, a 12% increase from 50 days.
Martin Cash Sales More than Double National Figure in September 2022
Cash sales represented 42.6% of Martin closed sales in September 2022, compared to 45.3% in September 2021. About 22% 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 52.4% of all Martin existing condo sales and 37.5% of single-family transactions.
To access September 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 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
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