According to a recent report from the Miami Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system, Broward County total home sales and prices increased year-over-year in 1Q 2020. Numbers indicate that total home sales in Broward County increased 3.4% year-over-year, from 6,797 to 7,025. Existing condo sales increased 2.2%, from 3,622 to 3,703, while single-family home sales rose 4.6%, from 3,175 to 3,322.
Despite the ongoing social and economic pressure from the global coronavirus pandemic, “The robust fundamentals of the South Florida housing market in the first quarter are already minimizing the impact of COVID-19 on sales activity and demand,” said Broward MIAMI President Sharon R. Lindblade in a press release announcing the numbers. “We are seeing sales, pending contracts and listings again trend upwards and expect there will be pent-up demand later in the year. Demand and insufficient supply, particularly in certain price ranges and neighborhoods, will continue to generate price appreciation.”
Total Sales Volume Jumps
Broward condo dollar volume increased 9.9%, from $805.3 million to $885 million.
Non-distressed sales comprised about 96.2% of all closed residential sales in 1Q 2020 vs. 95.4% in 1Q 2019. Only 3.8% of all closed residential sales in Broward were distressed in 1Q 2020, including bank-owned properties (REOs) and short sales, compared to 4.6% in 1Q 2019. Short sales and REOs accounted for 1.1 and 2.8%, respectively, of total Broward sales in 1Q 2020. Short sale transactions increased 1.4% year-over-year while REOs fell 19.2%.
Broward condo sales priced between $300K to $400K rose 27.1% year-over-year to 371 transactions in 1Q 2020. Luxury condo transactions decreased 1.6% to 61 sales in 1Q 2020.
According to the report, “Lower mortgage rates made home purchases more affordable in both 2019 and in the first quarter of 2020. The 30-year fixed-rate averaged 3.57% in the first quarter of 2020, down from 4.62% one year ago. The average monthly mortgage payment on a 30-year fixed-rate mortgage with a 20% down payment was $995, down from $1,048 a year ago. This is equivalent to 15% of the median family income of $79,662, down from 16.1% one year ago. (Housing expenses are considered a cost burden if the cost is more than 30% of income.)”
Median Prices Rise
The median price for existing condominiums increased 6.6% year-over-year from $165,000 to $175,875. The median price for single-family homes in Broward County increased to $380,000 in 1Q 2020, a 7% jump from $355,000 in the same period last year.
According to data from the Florida Realtors Research department in partnership with local Realtor boards/associations, the statewide median price for condo-townhouse properties during the quarter was $205,000, up 10.5% over the year-ago figure. The statewide median sales price for single-family existing homes in 1Q 2020 was $270,000, up 6.7% from the same time a year ago. The median is the midpoint; half the homes sold for more, half for less.
Strong Demand, Limited Supply
Months’ supply of inventory is a strong indicator of real estate activity. When it comes to condos, top Broward neighborhoods with the lowest months of supply of inventory (at least 100 new pending sales) in 1Q 2020 included: Miramar, a south Broward community along the Broward-Miami-Dade line, with 3.0 months’ supply; Plantation, a central Broward community north of Davie, had 3.1 months’ supply; Davie, a south Broward community south of Plantation, had 3.1 months’ supply; Coral Springs, a north Broward community north of Tamarac, had 3.4 months’ supply, and Oakland Park, an eastern Broward community north of Fort Lauderdale, had 3.4 months’ supply.
Florida’s statewide closed condo-townhouse sales totaled 27,379 during 1Q 2020, up 9.3% compared to 1Q 2019. For single-family homes, closed sales totaled 65,602 statewide in 1Q 2020, up 10.2% from the 1Q 2019 level. Looking at closed sales typically occur 30 to 90 days after sales contracts are written.
A Buyer’s Market
The report went on to say that “At the current sales pace, the number of active listings represents 3.7 months of inventory for single-family homes and 5.9 for condominiums. A balanced market between buyers and sellers offers between six and nine months of supply inventory.”
Broward real estate had 13,114 active listings in 1Q 2020, a 11.7% decrease from the 14,844 listings at the same time last year. Broward existing condo inventory decreased 6.9%, from 8,793 to 8,190, and the inventory of single-family homes decreased 18.6%, from 6,051 to 4,924.
List vs. Selling Price, & Time to Contract
When it comes to asking price versus sale price in 1Q 2020, the median percentage of original list price received was 94.6% for condos and 96% for single-family homes.
The median time to contract for existing condos was 58 days -- a 7.4% increase from 54 days in 1Q 2019 -- while the median time to contract for single-family home listings was 50 days, a 13.8% decrease from 58 days in 1Q 2019. The median time to sale for existing condos increased 3.1%, from 96 to 99, and decreased 6.1%, from 99 days to 93 for single-family homes.
Foreign Buyers Drive All-Cash Sales
Cash sales represented 37.8% of Broward closed sales in 1Q 2020, compared to 39.8% in 1Q 2019. Of those, cash sales accounted for 53.8% of all existing condo sales and 20.1% of single-family transactions. According to the latest statistics from the National Association of Realtors (NAR), about 20 percent of U.S. home properties are made in cash. The high percentage of cash buyers in Miami reflects the city’s high number of foreign buyers, who frequently use all-cash for real estate purchases.
Note: Statistics in this news release may vary depending on reporting dates; MIAMI reports exact statistics directly from its MLS system. You can find more information, including the full 1Q sales report, at MIAMI’s official website: www.MiamiRealtors.com