Broward County in Florida broke its record for the most annual home sales in just 10 months, as total sales for October 2021 pushed the market to the bottom, according to new data from the Miami Association of Realtors. above the old standard.
Total Broward County home sales declined 8.5% year-over-year in October 2021, from 3,241 sales to 2,967, due to lack of inventory and Covid19 comps (the statistics are compared to last year’s major rebound demand). Single-family home transactions in Broward declined 16.3%, from 1,656 to 1,386. Existing condominium sales in Broward fell a small 0.3%, from 1,585 to 1,581.
Year-to-date, Broward has recorded 34,167 total sales of existing homes in 10 months, surpassing the previous annual record of 33,891 transactions for all of 2016.
âA historic year of selling homes for Broward County real estate and the total would be even higher if there were more inventory,â said Broward-MIAMI President Patrick Simm. âReal estate in Broward and Fort Lauderdale offers a low-tax, pro-government market with increased access to water, beaches, an incredible downtown, shopping and more. “
Broward luxury sales surge as buyers from northeast and west coasts move to mega-region
Luxury single-family housing transactions in Broward ($ 1 million and over) increased 20.3% year over year to reach 142 sales in October 2021. Existing luxury condo sales in Broward ( $ 1 million and more) jumped 65.4% year over year. -year to 43 transactions.
There is 3.6 month supply in luxury single family homes; 5.8 month supply of luxury condos. Luxury supply months continue to trend down for all property types, month-to-month and year-to-year.
Low interest rates; a solid S&P 500; the attractiveness of stable assets in a volatile economy; tax-paying homebuyers leaving the northeastern states to buy in Florida (no state income tax); and work-from-home and distance-learning policies have all combined to create a strong market for luxury single-family properties.
With the increase in global vaccinations and the instability of political situations around the world, South Florida is experiencing an increase in the number of foreign buyers. Global buyers come here for the vaccine and the purchase of a property.
Vaccinated foreigners have been allowed to resume travel to the United States from November 8, which will result in more international investment in South Florida – the No.1 destination for foreign buyers. Global buyers buy 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 $ 400,000 and $ 600,000 declined 6.2% year-on-year to 497 transactions in October 2021. Existing condo sales in Broward priced between 400 $ 000 and $ 600,000 increased 90.7% to 143 transactions.
Low supply / high demand market for Broward real estate
There is always a seasonal drop in inventory in the fall and winter. More inventory is expected to hit the market in 2022, as potential home sellers become more comfortable listing and showing their homes. The drop in the number of home forbearers will also lead to an increase in inventory.
New listings of single-family homes in Broward fell 18.5% to 1,619 from 1,986. New listings of condominiums fell 9.2%, from 2,207 to 2,003.
The single-family home inventory declined 32.9% year over year in October 2021, from 3,278 active listings last year to 2,198 last month. The condominium inventory decreased 54.6% year over year to 3,503 from 7,720 listings during the same period in 2020.
The monthly supply of inventory has been declining since July 2019 for single-family homes, reflecting strong demand. The monthly supply of single-family home inventory fell 44% to 1.4 months, indicating a sellers market. Existing condominium inventories fell 69.8% to 1.9 months, indicating a sellers market. A balanced market between buyers and sellers offers between six and nine months of supply.
Total active registrations at the end of October 2021 fell 48.2% year-on-year, from 10,998 to 5,701.
Nationally, the total building stock at the end of October stood at 1.25 million units, down 0.8% from September and 12.0% from a year ago year (1.42 million). The unsold inventory stands at a 2.4 month supply at current sales pace, equal to September supply, and down from 2.5 months in October 2020.
Broward owners’ home equity continues to rise as many pay lower mortgage payments
With interest rates still at record highs, many South Florida homeowners have refinanced their home loans. So not only are many homeowners paying lower mortgage payments today; they do this when their wealth (the equity in their home) has increased dramatically. Home equity can be used for renovations, college loans, and more.
Median single-family home prices in Broward County rose 17.8% year-on-year in October 2021, from $ 415,000 to $ 489,000. Median prices for existing condominiums increased 20.6% year over year, from $ 189,000 to $ 227,950.
The greater share of Broward’s luxury sales in 2021 compared to a year ago partly explains the sharp increase in median prices year-over-year.
Rising median prices are a trend nationwide, as record mortgage rates and the increased availability of distance work and education have accelerated housing demand. Low stock versus high demand causes prices to increase.
Lower mortgage rates make buying a home more affordable. According to Freddie Mac, the average commitment rate for a conventional 30-year fixed-rate mortgage was 3.07 in October, down from 2.90% in September. The average engagement rate for the whole of 2020 was 3.11%.
If mortgage rates resume their ascent, home price growth should slow down accordingly. As more sellers list properties in 2021 and 2022, increased inventory should facilitate growth in median prices.
Miami remains a good deal compared to other cities in the world. In Miami, $ 1 million can net homebuyers 85 square meters of top-notch property, according to Knight Frank’s The Wealth Report 2021. Monaco (15 square meters), Hong Kong (23), London (31), New York (34) and Geneva (35) and others offer much less prime land for $ 1 million.
Broward’s dollar volume totals $ 1.4 billion, showing the impact of housing on the local economy
While other industries have struggled over the past year, housing has boosted the economy nationally and locally. For every two homes sold in the United States, one job is created. Broward’s dollar volume shows the impact of housing on the local economy.
Broward’s total dollar volume was $ 1.4 billion in October 2021. Single-family home dollar volume declined 0.1% year-on-year from $ 913.4 million to $ 912 million. $ 4 million. Condominium dollar volume increased 21.7% year over year, from $ 385.3 million to $ 468.9 million.
Distressed Broward sales continue to decline, reflecting a healthy market
Only 0.9% of all closed residential sales in Broward were in trouble last month, including REO (bank properties) and short sales, up from 1.9% in October 2020.
Broward’s total distressed sales decreased 55.7% year-on-year in October 2021, from 61 to 27. Short sales and REOs were 0.4% and 0.5% year-on-year, respectively. Broward’s total sales in October 2021. Short sale transactions were down 47.8% year-on-year while REOs were down 60.5%.
Nationally, troubled sales represented less than 1% of sales in October, equal to the percentage seen a month before and equal to October 2020.
Broward Real Estate Attracting Multiple Offers, Buyers Over List Price
The median percentage of the initial list price received for single-family homes was 99.2% in October 2021, up 1.6% from 97.6% last year. The median percentage of the original list price received for existing condos was 97.5%, up 2.3% from 95.3% last year.
The median number of days from listing to contract dates for single-family home sales in Broward was 17 days, down 22.7% from 22 days last year. The median time to sell single-family homes was 59 days, down 13.2% from 68 days last year.
The median number of days between listing date and contract date for condominiums was 21 days, down 43.2% from 37 days. The median number of days to sell condos was 63 days, down 19.2% from 78 days.
Broward Cash Sales 62.9% above national figure in October 2021
Cash sales represented 39.1% of Broward’s closed sales in October 2021, up from 30.4% in October 2020. About 24% of US home sales are made in cash, according to the latest statistics from the NAR .
The high percentage of cash buyers reflects South Florida’s leading position as the predominant US real estate market for foreign buyers, who tend to buy with cash as well as some moving to larger US markets. dear ones who can buy more with their profits from the sale of real estate. .
Cash sales represented 52.9% of all existing condo sales in Broward and 23.3% of single-family home transactions.