According to a new report by the Miami Association of Realtors, total Greater Ft. Lauderdale area (Broward County) home sales increased 5.9 percent in 3Q 2018 as median prices for all properties rose.
Total Broward sales rose 5.9 percent, from 7,789 to 8,252. Broward condo transactions increased 8.2 percent, from 3,808 to 4,119. Broward existing single-family sales increased 3.8 percent, from 3,981 to 4,133. Third quarter statistics include September, which was impacted by stalled sales in 2017 due to Hurricane Irma. While sales have been trending upwards, the percentage is higher than it might have been because of closings delayed by the hurricane last year.
"Another robust quarter for Broward real estate," said Miami Broward President Patricia C. Anglero, a Fort Lauderdale broker. "Broward condo sales led the increase once again. Year-to-date, Broward condo sales are 5.4 percent ahead of the pace of last year's sales and have now posted three consecutive quarters of positive gains."$2.69 Billion in Total Broward Sales Volume in 3Q 2018
Total sales volume accounted for $2.69 billion in 3Q 2018, an 8.9 percent increase from the $2.47 billion sales volume a year ago.
Non-distressed sales comprised 95 percent of all closed residential sales in 3Q 2018 vs. 94 percent in 3Q 2017. Only 5.1 percent of all closed residential sales in Broward were distressed in 3Q 2018, including REO (bank-owned properties) and short sales, compared to 6.4 percent in 3Q 2017.
Short sales and REOs accounted for 1.3 and 3.9 percent, respectively, of total Broward sales in 3Q 2018. Short sale transactions decreased 20.9 percent year-over-year while REOs fell 13.1 percent.Broward Luxury Homes Sales Increase 11.1 Percent
Total luxury home sales ($1 million and above) increased 11.1 percent, from 217 in 3Q 2017 to 241 in 3Q 2018.
Luxury existing condo sales fueled the $1-million-and-above transaction surge, increasing 40.4 percent to 66 transactions in 3Q 2018. Single-family home luxury transactions increased 2.9 percent to 175 transactions in 3Q 2018.
A rise in sales among mid-priced condos also played a key role in 3Q 2018. Broward condo sales in the $100,000 to $400,000 range increased 16.4 percent year-over-year, from 2,521 sales to 2,935.
Low mortgage rates make purchasing a home more affordable. According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.57 percent for 3Q 2018, up from the 3.89 percent recorded during the same quarter a year earlier.Broward Median Prices Rise in 3Q 2018
The median price for single-family homes in Broward County increased to $355,000 in the third quarter, a 1.4 percent jump from $350,000 in the same period last year. The median price for existing condominiums increased 5.1 percent year-over-year from $157,000 to $165,000.
Statewide, the median sales price for single-family existing homes in 3Q 2018 was $255,000, up 6.3 percent from the same time a year ago, according to Florida Realtors. The statewide median price for condo-townhouse properties during the quarter was $182,500, up 6.1 percent over the year-ago figure.
The national median existing single-family home price in the third quarter was $266,900, up 4.8 percent from the third quarter of 2017 ($254,700), according to the National Association of Realtors (NAR).Hot Markets Overview Reveals Strong Demand and Limited Supply in Many Local Areas
Months' supply of inventory is a strong indicator of real estate activity. Top Broward neighborhoods with the lowest months of supply of inventory (minimum of 20 pending sales) in 3Q 2018:Single-Family Homes
- Lauderdale Lakes, a central Broward city east of Sunrise, had 9 months supply
- North Lauderdale, a city east of Tamarac, had 5 months supply
- Pembroke Pines, a south Broward city west of Hollywood, had 2.7 months supply
- Margate, a city north of North Lauderdale, had 2.8 months supply
- Cooper City, a south Broward city north of Pembroke Pines, had 2.9 months supply
National, State Home Sales in 3Q 2018
- Cooper City, a south Broward city north of Pembroke Pines, had 2.0 months supply
- Miramar, a city that sits just north of the Miami-Dade line, had 8 months supply
- Tamarac, a western Broward city north of Sunrise, had 2.8 months supply
- Wilton Manors, a small city north of Fort Lauderdale, had 2.8 months supply
- Oakland Park, a central Broward city north of Fort Lauderdale, had 3.2 months supply
Nationwide existing-home sales, including single family and condos, decreased 2.6 percent to a seasonally adjusted annual rate of 5.273 million in the third quarter, down from 5.413 million in the second quarter. That number is 2.4 percent lower than the 5.403 million pace during the third quarter of 2017, according to NAR.
Closed sales of single-family homes statewide totaled 72,843 in 3Q 2018, up 7.5 percent from the 3Q 2017 figure, according to Florida Realtors. Looking at Florida's condo-townhouse market, statewide totaled 28,894 during 3Q 2018, up 9.5 percent compared to 3Q 2017.Broward in a Seller's Market for Single-Family Homes, Condos
At the current sales pace, the number of active listings represents 4.3 months of inventory for single-family homes and 5.5 for condominiums. A balanced market between buyers and sellers offers between six and nine months of supply inventory.
Broward real estate had 13,324 active listings in the third quarter, a 4.7 percent increase from the 12,729 listings at the same time last year. The inventory for single-family homes increased 10.2 percent, from 5,085 to 5,603. Broward existing condo inventory grew 1.0 percent, from 7,721 to 7,644.Broward Homes Selling Close to List Price
The median percent of original list price received was 96.2 percent for single-family homes and 94.6 percent for condos in 3Q 2018.
The median time to contract for single-family home listings was 38 days, a 4.8 percent increase from 36 days in 3Q 2017. The median time to contract for existing condos was 52 days, a 3.7 percent decrease from 54 days in 3Q 2017.
The median time to sale for single-family homes decreased 1.2 percent, from 81 days to 80. The median time to sale for existing condos decreased 7.0 percent, from 100 to 93.Broward Cash Sales Almost Double National Figure
Cash sales represented 35.2 percent of Broward closed sales in the third quarter of 2018, compared to 38.2 percent in 3Q 2017. About 21 percent of U.S. home properties are made in cash, according to the latest NAR statistics.
Cash sales accounted for 50.5 percent of all Broward existing condo sales and 19.9 percent of single-family transactions.