Based on new data from the Miami Association of Realtors, Broward County Florida total home sales continued surging in September 2021 as pent-up demand, more U.S. individuals and companies moving to South Florida, and record-low mortgage rates continue fueling transactions.
Broward County total home sales increased 5.1% year-over-year in September 2021, from 2,984 sales to 3,136. Broward single-family home transactions decreased 3%, from 1,535 to 1,489. Broward existing condo sales increased 13.7%, from 1,449 to 1,647.
"We continue see homebuyers from high-tax, high-density states moving to Fort Lauderdale and Broward County for the long term," Broward-MIAMI President Patrick Simm said. "Florida has the advantage of no income tax and no inheritance tax, but it's our work-live-play lifestyle and growing economy that is leading homebuyers to make this a permanent home."
Demand for Broward Condos Surges; Condo Sales Jump 13.7% Year-over-Year in September
Nearly every week brings another announcement of a major U.S. company either moving their headquarters to South Florida or opening offices here.
With so many U.S. companies and individuals relocating to our region over the last year, many of those relocating homebuyers are taking advantage of 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 September 2021, with major transaction increases in properties selling at $250K and above.
Lack of inventory in certain price points is impacting sales, particularly for single-family homes. More inventory is expected to come to the market in 2022 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 26.6% year-over-year to 181 sales in September 2021. Broward existing condo luxury ($1-million-and-up) sales increased 207.7% year-over-year to 40 transactions.
There are 3.4 months of supply in luxury single-family homes; 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 Miami because Miami is a world-class global city 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 surged 7.7% year-over-year to 518 transactions in September 2021. Broward existing condo sales priced between $400K to $600K increased 125.8% to 140 transactions.
More Inventory Expected to Arrive Later this Year for Low-Supply/High-Demand Market
New listings of Broward single-family homes decreased 9.7% to 1,589 from 1,879. New listings of condominiums decreased 13.7%, from 2,225 to 1,921.
Inventory of single-family homes decreased 28.2% year-over-year in September 2021 from 3,234 active listings last year to 2,323 last month. Condominium inventory decreased 52.3% year-over-year to 3,712 from 7.784 listings during the same period in 2020.
Months' supply of inventory is down since July 2019 for single-family, reflecting strong demand. Months' supply of inventory for single-family homes decreased 42.3% to 1.5 months, which indicates a seller's market. Inventory for existing condominiums decreased 69.2% to 2 months, which indicates a seller's market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Total active listings at the end of September 2021 decreased 45.2% year-over-year, from 11,018 to 6,035.
Nationally, total housing inventory at the end of September amounted to 1.27 million units, down 0.8% from August and down 13.0% from one year ago (1.46 million). Unsold inventory sits at a 2.4-month supply at the present sales pace, down 7.7% from August and down from 2.7 months in September 2020.
Broward Homeowners' Home Equity Continues Surging 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 17.5% year-over-year in September 2021, increasing from $425,000 to $499,450. Existing condo median prices increased 12.1% year-over-year, from $190,000 to $213,000.
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 2.90% in September, up from 2.84% in August. The average commitment rate across all of 2020 was 3.11%.
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.
Miami remains a bargain compared to other global cities. In Miami, $1 million can net homebuyers 85 square meters of prime property, according to Knight Frank's 2021 The Wealth Report. Monaco (15 square meters), Hong Kong (23), London (31), New York (34) and Geneva (35) and others offer significantly less prime land for $1 million.
Broward Dollar Volume Totals $1.5 Billion, Showcasing Impact Housing Plays in Local 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 total dollar volume totaled $1.5 billion in September 2021. Single-family home dollar volume increased 13.5% year-over-year, from $873 million to $991 million. Condo dollar volume increased 38.1% year-over-year, from $338 million to $466 million.
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 2.6% in September 2020.
Total Broward distressed sales decreased 63.3% year-over-year in September 2021, from 79 to 29. Short sales and REOs accounted for 0.4% and 0.5% year-over-year, respectively, of total Broward sales in September 2021. Short sale transactions decreased 22.2% year-over-year while REOs decreased 75.4%.
Nationally, distressed sales represented less than 1% of sales in September, equal to the percentage seen a month prior and equal to September 2020.
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 September 2021, up 3% from 97.1% last year. The median percent of original list price received for existing condominiums was 97.8%, up 2.7% from 95.2% last year.
The median number of days between listing and contract dates for Broward single-family home sales was 13 days, a 38.1% decrease from 21 days last year. The median time to sale for single-family homes was 56 days, a 16.4% decrease from 67 days last year.
The median number of days between the listing date and contract date for condos was 19 days, down 55.8% from 43 days. The median number of days to sale for condos was 64 days, a 25.6% decrease from 86 days.
Broward Cash Sales 69.1% Higher than National Average in September 2021
Cash sales represented 38.9% of Broward closed sales in September 2021, compared to 28.8% in September 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 53.5% of all Broward existing condo sales and 22.7% of single-family transactions.