MIAMI — Broward County continued its long streak of surging home sales as pent-up demand, more U.S. individuals and companies moving to South Florida, and record-low mortgage rates continue fueling transactions, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Broward County's total home sales surged 23.9% year-over-year in July 2021, from 2,970 sales to 3,679. Broward single-family home transactions rose 2.1%, from 1,646 to 1,680. Broward's existing condo sales increased 51%, from 1,324 to 1,999.
“Greater Fort Lauderdale and Broward County continue to attract tax-burdened homebuyers and relocating U.S. companies,” Broward-MIAMI President Patrick Simm said. “The allure of our low-tax, pro-government and sunny lifestyle has only accelerated with the pandemic and the increase availability of remote work.”
Broward home sales are also higher vs. July 2019. Broward's total home sales are up 15.7% in July 2021 vs. July 2019, from 3,181 to 3,679. Broward single-family home sales (2.8% increase) and condo transactions (29.2% jump) are higher than July 2019.
Demand for Broward Condos Surges; Condo Sales Jump 51% Year-over-Year in July 2021
With so many U.S. companies and individuals relocating to our region over the last year, many of those relocating homebuyers are acting on the condo inventory. International homebuyers, who have long preferred condos, have pent-up demand for South Florida real estate and are also returning to the No. 1 market for foreign homebuyers.
Broward existing condo sales are up in all price ranges in July 2021, with major transaction increases in properties selling at $300K and above.
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. More inventory is expected to come to the market later this year as potential home sellers become more comfortable listing and showing their homes. The falling number of homeowners in mortgage forbearance will also bring about more inventory.
Broward Luxury Sales Jump as Northeast and West Coast Buyers Move to Mega Region
Broward single-family luxury ($1-million-and-up) transactions jumped 103.5% year-over-year to 173 sales in July 2021. Broward existing condo luxury ($1-million-and-up) sales increased 60.6% year-over-year to 53 transactions.
There are 3.8 months of supply in luxury single-family homes; 6.6 months of supply in luxury condos. Luxury months of supply continues to trend downward for all property types, month-over-month, and year-over-year.
Low interest rates; a robust S&P 500; the appeal of stable assets in a volatile economy; homebuyers leaving tax-burdened Northeastern 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.
With global vaccinations rising and unstable political situations around the world, South Florida is seeing an increase in foreign homebuyers. Global buyers are also coming here for the vaccine and purchasing property. Global buyers purchase in South Florida because the mega region is a world-class global region with better real estate prices than other similar global cities. Foreign buyers feel at home with our incredible diversity and acceptance of all cultures.
Broward single-family homes priced between $400K to $600K increased 11.8% year-over-year to 586 transactions in July 2021. Broward existing condo sales priced between $400K to $600K increased 163.2% to 200 transactions.
Single-Family Home Inventory Rises Month-over-Month as More Listings Arrive to the Market
Broward single-family homes inventory rose in July 2021 compared to June 2021 and new single-family listings rose year-over-year, two indicators that more inventory is heading to the low-supply/high demand market.
The number of Broward single-family home active listings increased 5.7% in July 2021 compared to June 2021, from 2,284 to 2,414. For single-family homes, new listings increased 2.5% year-over-year, from 1,921 to 1,969.
Inventory of single-family homes decreased 35.2% year-over-year in July 2021 from 3,724 active listings last year to 2,414 last month. Condominium inventory decreased 51% year-over-year to 3,898 from 7,950 listings during the same period in 2020.
Months supply of inventory for single-family homes decreased 66.7% to 2.2 months, which indicates a seller’s market. Inventory for existing condominiums decreased 51.6% to 1.5 months, which indicates a seller’s market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Months supply of inventory is down since July 2019 for single-family, reflecting strong demand.
Total active listings at the end of July 2021 decreased 45.9% year-over-year, from 11,674 to 6,312.
New listings of Broward single-family homes increased 2.5% to 1,969 from 1,921. New listings of condominiums decreased 4.8%, from 2,119 to 2,017.
Nationally, total housing inventory at the end of July totaled 1.32 million units, up 7.3% from June’s supply and down 12.0% from one year ago (1.50 million). Unsold inventory sits at a 2.6-month supply at the present sales pace, up slightly from the 2.5-month figure recorded in June but down from 3.1 months in July 2020.
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 County single-family median prices increased 23.8% year-over-year in July 2021, increasing from $400,000 to $495,000. Existing condo median prices increased 10.3% year-over-year, from $195,000 to $215,000.
The greater share of Broward luxury sales in 2021 compared to a year ago is part of the reason for the large year-over-year increase in median prices.
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.
Lower mortgage rates are making home purchases more affordable. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 2.87% in July, marginally down from 2.98% in June. The average commitment rate across all of 2020 was 3.11%. NAR Chief Economist Lawrence Yun expects the 30-year fixed-rate mortgage to remain below 3.5% in 2021.
Should mortgage rates resume their upward climb, home price growth is likely to slow in response. As more sellers list properties in 2021, the increased inventory should ease the growth of median prices.
Broward Dollar Volume Totals $1.6 Billion, Showcasing Power of Housing
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. Miami dollar volume showcases the impact housing plays in the local economy.
Single-family home dollar volume increased 33.4% year-over-year, from $841.3 million to $1.1 billion. Condo dollar volume increased 72.1% year-over-year, from $339.6 million to $584.3 million.
Lack of access to mortgage loans continues to inhibit further growth of the existing condominium market. Only 19 of the 1,929 condominium buildings in Miami-Dade, Broward and Palm Beach counties are approved for Federal Housing Administration loans as of Aug. 17, 2021, according to the U.S. Department of Housing and Urban Development.
A better condo approval process is expected to increase sales. The guidance, which went into effect in October 2019, extends certifications from two years to three, allows for single-unit mortgage approvals, provides more flexibility with owner/occupancy ratios, and increases the allowable number of FHA loans in a single project. The changes, many of which MIAMI and NAR have championed, are expected to generate increased homeownership opportunities.
Broward Distressed Sales Keep Dropping, Reflecting Healthy Market
Only 0.9% of all closed residential sales in Broward were distressed last month, including REO (bank-owned properties) and short sales, compared to 2.9% in July 2020.
Total Broward distressed sales decreased 58.8% year-over-year in July 2021, from 85 to 35.
Short sales and REOs accounted for 0.5% and 0.5% year-over-year, respectively, of total Broward sales in July 2021. Short sale transactions decreased 5.6% year-over-year while REOs decreased 73.1%.
Nationally, distressed sales represented less than 1% of sales in July 2021, equal to July 2020.
National, State Housing Demand Robust as More Inventory Expected to Arrive
Nationally, total existing-home sales transactions completed transactions that include single-family homes, townhomes, condominiums and co-ops, grew 2.0% from June to a seasonally adjusted annual rate of 5.99 million in July. Sales inched up year-over-year, increasing 1.5% from a year ago (5.90 million in July 2020).
Statewide, closed sales of single-family homes in July totaled 30,740, a slight decrease of 2.1% year-over-year, while existing condo-townhouse sales totaled 13,481, up 21.1% over July 2020. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, the median existing-home price for all housing types in July was $359,900, up 17.8% from July 2020 ($305,600), as each region saw prices climb. This marks 113 straight months of year-over-year gains.
The statewide median sales price for single-family existing homes in July was $355,000, up 20.3% 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 $253,000, up 20.5% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Broward Real Estate Attracting Multiple Bids, Buyers Going Over-List Price
The median percent of original list price received for single-family homes was 100% in July 2021, up 3.2% from 96.9% last year. The median percent of original list price received for existing condominiums was 97.8%, up 2.9% from 95% last year.
The median number of days between listing and contract dates for Broward single-family home sales was 13 days, a 64.9% decrease from 37 days last year. The median time to sale for single-family homes was 57 days, a 27.8% decrease from 79 days last year.
The median number of days between the listing date and contract date for condos was 24 days, down 65.2% from 69 days. The median number of days to sale for condos was 70 days, a 36.9% decrease from 111 days.
Broward Cash Sales 67.4% More than National Figure in July 2021
Cash sales represented 38.5% of Broward closed sales in July 2021, compared to 27.4% in July 2020. About 23% 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 can buy more with their profits from real estate sales.
Cash sales accounted for 51.9% of all Broward existing condo sales and 22.7% of single-family transactions.
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To access July 2021 Broward County 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.
