MIAMI — Martin County existing condo transactions increased year-over-year, according to August 2023 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Martin existing condo sales increased 4.4% year-over-year in August 2023, from 90 to 94 transactions.
“Stuart and Martin County is routinely ranked as one of America’s best small towns,” JTHS-MIAMI President Martha Gillespie-Beeman said. “Homebuyers get the small-town lifestyle with access to bustling South Florida tri-county region.”
South Florida Showing Appointments Increase for the Fourth Consecutive Month
Martin remains in a high-demand, low-supply market with showing appointments surging and new listings declining.
South Florida showing appointments increased for the fourth consecutive month, jumping 2% year-over-year, from 215,662 in August 2022 to 219,484 in August 2023.
Martin total home sales decreased 6.9% year-over-year in August 2023, from 277 transactions in August 2022 to 258 in August 2023.
Martin single-family home sales decreased 12.3% year-over-year, from 187 in August 2022 to 164 in August 2023. Martin existing condo sales increased 4.4% year-over-year, from 90 in August 2022 to 94 in August 2023.
Home sales are sensitive to mortgage rate changes. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 7.18% as of September 14. That’s up from 7.12% the prior week and 6.02% one year ago.
“Buyers seem to be realizing that home prices aren’t coming down and are more mentally prepared to make an offer on a home that meets their financial condition and needs,” MIAMI REALTORS® Chief Economist Gay Cororaton said.
Miami Region Leads the Nation in New Apartments Under Construction
With existing inventory near all-time lows, the Miami region would have more total sales if it had more supply and the market could start to realize that as early as next year.
According to LoopNet, Miami leads the nation in new apartments under construction as a share of total inventory. Most of the new units are expected to open in 2024. Most of the new apartments are in Downtown Miami, where many new-to-market FinTech companies have relocated. The new apartments will be in new 4-and-5-star buildings.
Martin total active listings at the end of August increased 7.4% year-over-year, from 701 to 753.
Inventory of single-family homes decreased 5.7% year-over-year in August 2023 from 490 active listings last year to 462 last month. Condominium inventory increased 37.9% year-over-year from 211 listings to 291 during the same period in 2022.
New listings of Martin single-family homes decreased 23.1% from 229 to 176 year-over-year. New listings of condominiums decreased 6.8%, from 117 to 109 year-over-year.
Months’ supply of inventory for single-family homes is 2.9 months, which indicates a seller’s market. Inventory for existing condominiums is 3.3 months, which also indicates a seller’s market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Nationally, total housing inventory registered at the end of August was 1.1 million units, down 0.9% from July and 14.1% from one year ago (1.28 million). Unsold inventory sits at a 3.3-month supply at the current sales pace, identical to July and up from 3.2 months in August 2022.
South Florida Household Income Rises with Wealth Migration
Martin County single-family home median prices decreased 12.9% year-over-year in August 2023, from $660,000 to $575,000. Existing condo median prices decreased 4.4% year-over-year from $304,500 to $291,000.
Historically, a market with less than 6 months of supply will have appreciating prices. Martin single-family homes and existing condos are at 2.9 and 3.3 months, respectively.
Local home prices have risen with South Florida’s wealth migration. In-migration boosted South Florida household income by $16 Billion in 2021, according to MIAMI REALTORS® analysis of the 2020-2021 migration data released by the Internal Revenue Service.
New households moving into Miami-Dade in 2021 had an average adjusted gross income of $229,300. New households moving into Broward County had an average adjusted gross income of $102,600. New households moving into Palm Beach County had an average adjusted gross income of $242,200.
Martin Real Estate Posts $31.5 Million Local Economic Impact in August 2023
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 $122,000, according to NAR. Martin sold 258 homes in August 2023 for a local economic impact of $31.5 million.
Martin total dollar volume totaled $165 million in August 2023. Single-family home dollar volume decreased 19.17% year-over-year to $128 million. Condo dollar volume increased 9.46% year-over-year to $33.4 million.
Martin Distressed Sales Remain Low, Reflecting Healthy Market
Only 0.4% of all closed residential sales in Martin were distressed last month, including REO (bank-owned properties) and short sales, higher than 0 in August 2022
Short sales and REOs accounted for 0 and 0.4% year-over-year, respectively, of total Martin sales in August 2023.
Martin’s percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented 1% of sales in August 2023, virtually unchanged from last month and the prior year.
South Florida Median Price Appreciation Outperforming Nation, State
In Florida, closed sales of single-family homes statewide totaled 22,917 in August 2023, down 7.9% year-over-year, while existing condo-townhouse sales totaled 9,279, down 7.2%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, total existing-home sales transactions slid 0.7% from July to a seasonally adjusted annual rate of 4.04 million in August. Year-over-year, sales fell 15.3% (down from 4.77 million in August 2022).
The statewide median sales price for single-family existing homes was $415,000, up 2% 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 $324,000, up 6.2% 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 housing types in August was $407,100, an increase of 3.9% from August 2022 ($391,700). All four U.S. regions posted price increases.
Martin Real Estate Attracting Near List Price
The median percent of original list price received for single-family homes was 95.4% in August 2023. The median percent of original list price received for existing condominiums was 95.3%.
The median number of days between listing and contract dates for Martin single-family home sales was 25 days, up from 21 days last year. The median time to sale for single-family homes was 67 days, up from 63 days last year.
The median number of days between the listing date and contract date for condos was 27 days, up from 16 days. The median number of days to sale for condos was 65 days, down from 57 days.
Martin Cash Sales 86.7% More than National Figure
Cash sales represented 50.4% of Martin closed sales in August 2023, compared to 51.6% in August 2022. About 27% 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 60.6% of all Martin existing condo sales and 44.5% of single-family transactions.
To access August 2023 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 103 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 256 international organizations worldwide. MIAMI’s official website is www.MiamiRealtors.com