The Miami Association of Realtors is reporting this week that Broward County (the greater Ft. Lauderdale area) total home sales and prices increased year-over-year in 1Q 2020.
Broward total home sales increased 3.4% year-over-year, from 6,797 to 7,025. Broward single-family home sales rose 4.6%, from 3,175 to 3,322. Broward existing condo sales increased 2.2%, from 3,622 to 3,703.
"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," Broward MIAMI President Sharon R. Lindblade said. "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 Broward Sales Volume Jump in 1Q 2020
Broward single-family home dollar volume rose 19.3%, from $1.4 billion to $1.7 billion. 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 REO (bank-owned properties) 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%.Mid-Market and Luxury Sales Fuel 1Q Transaction Growth
Broward single-family homes priced between $400K to $600K increased 18.9% year-over-year to 912 transactions in 1Q 2020. Broward condo sales priced between $300K to $400K rose 27.1% year-over-year to 371 transactions in 1Q 2020.
Broward single-family home luxury ($1 million and up) transactions increased 26.7% to 204sales in 1Q 2020. Broward condo luxury transactions decreased 1.6% to 61 sales in 1Q 2020.
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.)Broward Median Prices Rise
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. The median price for existing condominiums increased 6.6% year-over-year from $165,000 to $175,875.
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, 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 median is the midpoint; half the homes sold for more, half for less.
Nationwide, median single-family home prices increased year-over-year in 96% of measured markets in the first quarter, with 174 of 181 metropolitan statistical areas1 showing sales price gains. That is an increase from the 94% share seen in the fourth quarter of 2019. The national median existing single-family home price in the first quarter of 2020 was $274,600, up 7.7% from the first quarter of 2019 ($254,900).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 (at least 100 new pending sales) in 1Q 2020:Single-Family Homes
- Sunrise, a north Broward community north of Plantation, had 2.1 months supply
- Coral Springs, a north Broward community north of Tamarac, had 2.1 months supply
- Pembroke Pines, a south Broward community north of Miramar, had 2.2 months supply
- Coconut Creek, a north Broward community along the Palm Beach-Broward line, had 2.4 months supply
- Margate, a north Broward community north of North Lauderdale, had 2.4 months supply
State Home Sales in 1Q 2020
- Miramar, a south Broward community along the Broward-Miami-Dade line, had 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
- Oakland Park, an eastern Broward community north of Fort Lauderdale, had 3.4 months supply
Closed sales of single-family homes statewide totaled 65,602 in 1Q 2020, up 10.2% from the 1Q 2019 level. Looking at Florida's condo-townhouse market, statewide closed sales totaled 27,379 during 1Q 2020, up 9.3% compared to 1Q 2019. Closed sales typically occur 30 to 90 days after sales contracts are written.Buyer's Market for Single-Family Homes and Condos
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. The inventory for single-family homes decreased 18.6%, from 6,051 to 4,924. Broward existing condo inventory decreased 6.9%, from 8,793 to 8,190.Broward Homes Selling Close to List Price
The median percent of original list price received was 96% for single-family homes and 94.6% for condos in 1Q 2020.
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 contract for existing condos was 58 days, a 7.4% increase from 54 days in 1Q 2019.
The median time to sale for single-family homes decreased 6.1%, from 99 days to 93. The median time to sale for existing condos increased 3.1%, from 96 to 99Broward Cash Sales Almost Double National Figure
Cash sales represented 37.8% of Broward closed sales in 1Q 2020, compared to 39.8% in 1Q 2019.
About 20 percent of U.S. home properties are made in cash, according to the latest NAR statistics. The high percentage of cash buyers reflects Miami's top position as the preeminent American real estate market for foreign buyers, who tend to purchase with all cash.
Cash sales accounted for 53.8% of all Broward existing condo sales and 20.1% of single-family transactions.