MIAMI, May 11, 2021 /PRNewswire-PRWeb/ -- Broward County continued its trend of
double-digit total home sales in 1Q 2021 as pent-up demand and
record-low mortgage rates fueled transactions, according to the
MIAMI Association of Realtors
(MIAMI) and the Multiple Listing
Service (MLS) system.
Broward County total home sales
surged 29.9% year-over-year, from 7,025 to 9,131. Broward single-family home transactions rose
28.4%, from 3,322 to 4,267. Broward single-family homes have now posted
year-over-year sales gains in seven of the last eight quarters, a
span of two years. Broward
existing condo sales increased 31.4%, from 3,703 to 4,864.
"From millennials to baby boomers, homebuyers are choosing
Greater Fort Lauderdale and
Broward County to live, work and
play," Broward-MIAMI President
Patrick Simm said. "Located in the
center of South Florida,
Broward is home to a dynamic
business district and we are seeing a new wave of tech companies
relocating here bringing high-paying jobs."
Lack of inventory in certain price points is impacting sales,
particularly for single-family homes. Increased housing starts and
more sellers listing properties in 2021 should help alleviate the
lack of supply.
Broward Luxury Sales Jump 105.4% as Tax-Burdened High-Net-Worth
Buyers Relocate
Broward County single-family home
luxury ($1-million-and-up)
transactions surged 105.4% year-over-year to 419 transactions in 1Q
2021. Broward County condo luxury
sales increased 168.9% to 164 transactions in 1Q 2021.
Record-low interest rates; a record-high S&P 500; the appeal
of stable assets in a volatile economy; homebuyers leaving
tax-burdened Northeastern and West Coast states to purchase in
Florida (no state income tax); and
work-from-home and remote-learning policies have all combined to
create a robust market for luxury single-family properties.
Broward Homeowners' Home Equity Surges as Many Pay Lower
Mortgage Payments
With interest rates still at record lows, many South Florida homeowners have refinanced their
home loans. So not only are many homeowners paying lower mortgage
payments today; they are doing so while their wealth (home equity)
has significantly increased. Home equity can be tapped for
renovations, college loans and more.
Broward single-family home
median prices rose 14.5% year-over-year, from $380,000 to $435,000. Broward existing condo median prices rose
17.1% year-over-year, from $175,875
to $206,000.
Rising median prices is a trend nationwide as record-low
mortgages rates and the increased availability of remote work and
education has accelerated the demand for housing. Low inventory
relative to high demand leads to prices rising.
Should mortgage rates resume their upward climb, home price
growth is likely to slow in response. Also, as more sellers list
properties in 2021, the increased inventory should ease the growth
of median prices.
Broward Dollar Volume Totals $4.1
Billion, Showcasing Impact Housing Plays in Economy
While other industries struggled over the past year, housing lifted
the economy nationally and locally. For every two homes sold in the
U.S., one job is created. Broward
dollar volume showcases the impact housing plays in the local
economy.
Broward single-family home
dollar volume rose 57.1%, from $1.7
billion to $2.7 billion.
Broward existing condo dollar
volume increased 58% to $1.4
billion.
Non-distressed sales comprised about 98.5% of all closed
residential sales in 1Q 2021 vs. 96.2% in 1Q 2020. Only 1.5% of all
closed residential sales in Broward were distressed in 1Q 2021,
including REO (bank-owned properties) and short sales, compared to
3.8% in 1Q 2020.
Short sales and REOs accounted for 0.6% and 0.9%, respectively,
of total Broward sales in 1Q 2021.
Short sale transactions decreased 28.4% year-over-year while REOs
fell 55.7%.
Lower mortgage rates made home purchases more affordable in
2021. According to Freddie Mac, the interest rate for a 30-year
fixed-rate mortgage averaged 2.88% for 1Q 2021, down from the 3.51%
average recorded during the same quarter a year earlier.
Broward Hot Markets: Buyers Look to the Larger Homes Available
in the Suburbs
Months' supply of inventory is a strong indicator of real estate
activity. A look at Broward County
neighborhoods with the lowest months of supply of inventory (at
least 100 new pending sales) in 1Q 2021:
Single-Family Homes
1. Coconut Creek, a north Broward community on the Palm Beach-Broward line, had 0.8 months supply
2. Pembroke Pines, a south Broward community north of Miramar, had 0.9 months supply
3. Sunrise, a central-western Broward city north of Plantation, had 0.9 months supply
4. Cooper City, a south Broward community north of Pembroke Pines, had 0.9 months supply
5. Coral Springs, a north Broward community west of Coconut Creek, had 0.9 months supply
Condominiums
1. Miramar, a south Broward community on the Broward-Miami-Dade line, had 1.6 months supply
2. Weston, a south Broward community west of Davie, had 1.9 months supply
3. Plantation, a central Broward community west of Fort Lauderdale, had 2 months supply
4. Coral Springs, a north Broward community west of Coconut Creek, had 2.1 months supply
5. Davie, a south Broward town east of Weston, had 2.2 months supply
Robust Demand for Housing Statewide, Nationally Fueling
Double-Digit Increase in Sales
Closed sales of single-family homes statewide totaled 78,353 in 1Q
2021, up 19.4% from the 1Q 2020 level. In Florida's condo-townhouse market, statewide
closed sales totaled 37,505 during 1Q 2021, up 37% compared to 1Q
2020, according to data from Florida Realtors Research department
in partnership with local Realtor boards/associations. Closed sales
typically occur 30 to 90 days after sales contracts are
written.
The statewide median sales price for single-family existing
homes in 1Q 2021 was $317,500, up
17.6% from the same time a year ago. The statewide median price for
condo-townhouse properties during the quarter was $235,422, up 14.8% over the year-ago figure. The
median is the midpoint; half the homes sold for more, half for
less.
Nationally, the median existing-home sales price rose 16.2% on a
year-over-year basis to $319,200, a
record high since 1989. All regions recorded double-digit
year-over-year price growth, with the Northeast seeing a 22.1%
increase, followed by the West (18.0%), South (15.0%) and Midwest
(14.4%).
Buyers Targeting Broward Existing Condos: Four Times More
Inventory than Single-Family
At the current sales pace, the number of active listings represents
1.6 months of inventory for single-family homes (seller's market)
and 4.1 for condominiums (seller's). A balanced market between
buyers and sellers offers between six and nine months of supply
inventory.
Broward real estate had 7,867
active listings in 1Q 2021, a 40% drop from the 13,114 listings at
the same time last year. The inventory for single-family homes
dropped 55.1%, from 4,924 to 2,209. Broward existing condo inventory decreased
30.9%, from 8,190 to 5,658.
Broward Real Estate Attracting Multiple Bids, Buyers Going
Over-List Price
With low inventory, particularly for single-family homes,
Broward properties are attracting
multiple bids and buyers going over-list price. The median percent
of original list price received was 98.2% for single-family homes
and 95.6% for condos in 1Q 2021.
The median time to contract for single-family home listings was
20 days, a 60% drop from 50 days in 1Q 2020. The median time to
contract for existing condos was 45 days, a 22.4% drop from 58 days
in 1Q 2020.
The median time to sale for single-family homes decreased 30.1%,
from 93 days to 65. The median time to sale for existing condos
decreased 12.1%, from 99 to 87.
Broward Cash Sales Nearly Double National Figure: South Florida
Top Market for Global Buyers
Cash sales represented 35.9% of Broward closed sales in 1Q 2021, compared to
37.8% in 1Q 2020. About 20 percent of U.S. home sales are made in
cash, according to the latest NAR statistics.
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 are able to buy more with their profits from real
estate sales.
Cash sales accounted for 49.2% of all Broward existing condo sales and 20.8% of
single-family transactions.
1Q 2021 Broward Statistical Reports — visit
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
was chartered by the National Association of Realtors in 1920 and
is celebrating 101 years of service to Realtors, the buying and
selling public, and the communities in South Florida. Comprised of six organizations,
the Residential Association, the Realtors Commercial Alliance, the
Broward-MIAMI Association of
Realtors, the Jupiter Tequesta Hobe Sound (JTHS-MIAMI) Council, the Young Professionals
Network (YPN) Council and the award-winning International Council,
it represents 52,000 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 223 international organizations worldwide. MIAMI's official website is
http://www.MiamiRealtors.com
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Media Contact
Chris Umpierre, MIAMI Association of Realtors, 3054687047,
chris@miamire.com
Twitter
SOURCE MIAMI Association of
Realtors