MIAMI — Broward County $1M-and-up single-family home sales rose double digits year-over-year, according to August 2023 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Broward $1M-and-up single-family home sales increased 14.3% year-over-year in August 2023, from 168 to 192 transactions.
“Fort Lauderdale luxury real estate offers a lifestyle unlike any other that continues to attract international demand from buyers such as global soccer phenom Lionel Messi,” Broward-MIAMI President Alfredo Pujol said.
South Florida Showing Appointments Increase for the Fourth Consecutive Month
Broward 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.
Broward total home sales decreased 10.7% year-over-year in August 2023, from 2,700 transactions in August 2022 to 2,410 in August 2023, because of elevated mortgage rates and lack of supply in certain price points.
Broward single-family home sales decreased 2% year-over-year, from 1,202 in August 2022 to 1,178 in August 2023. Broward existing condo sales decreased 17.8% year-over-year, from 1,498 in August 2022 to 1,232 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.
The monthly historical average for Broward existing inventory (this doesn’t include new construction) is 15,411 and current inventory is at 7,528. Total inventory is down 42.4% from pre-pandemic (August 2019), from 13,080 to 7,528.
Total active listings at the end of August increased 6.4% year-over-year, from 7,035 to 7,528.
Inventory of single-family homes decreased 16.3% year-over-year in August 2023 from 3,458 active listings last year to 2,893 last month. Condominium inventory increased 29.6% year-over-year to 4,635 from 3,577 listings during the same period in 2022.
New listings of Broward single-family homes decreased 9.8% to 1,498 from 1,661 year-over-year. New listings of condominiums decreased 1.3%, from 1,931 to 1,906 year-over-year.
Months’ supply of inventory for single-family homes is 2.8 months, which indicates a seller’s market. Inventory for existing condominiums is 3.8 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.
Broward Home Prices, Household Income Rise with Wealth Migration
Broward County single-family home median prices increased 6.7% year-over-year in August 2023, increasing from $562,500 to $600,000. Existing condo median prices increased 3.8% year-over-year from $265,000 to $275,000.
Historically, a market with less than 6 months of supply will have appreciating prices. Broward single-family homes and existing condos are at 2.8 and 3.8 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.
Broward Real Estate Posts $294 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. Broward sold 2,410 homes in August 2023 for a local economic impact of $294 million.
Broward total dollar volume totaled $1.4 billion in August 2023. Single-family home dollar volume increased 5.1% year-over-year to $941 million. Condo dollar volume decreased 20.95% year-over-year to $416 million.
Broward Distressed Sales Remain Low, Reflecting Healthy Market
Only 1.1% of all closed residential sales in Broward were distressed last month, including REO (bank-owned properties) and short sales, lower than 1.3% in August 2022.
Short sales and REOs accounted for 0.3% and 0.8% year-over-year, respectively, of total Broward sales in August 2023.
Broward’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.
Broward 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.
Broward Real Estate Attracting Near List Price
The median percent of original list price received for single-family homes was 97.3% in August 2023. The median percent of original list price received for existing condominiums was 96.6%.
The median number of days between listing and contract dates for Broward single-family home sales was 23 days, up from 18 days last year. The median time to sale for single-family homes was 62 days, up from 56 days last year.
The median number of days between the listing date and contract date for condos was 26 days, up from 16 days. The median number of days to sale for condos was 69 days, down from 57 days.
Broward Cash Sales 41.1% More than National Figure
Cash sales represented 38.1% of Broward closed sales in August 2023, compared to 40.8% 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 50.3% of all Broward existing condo sales and 25.3% of single-family transactions.
To access August 2023 Broward 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
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