“Broward real estate is coming off a strong 2018 that saw the market post year-over-year gains in total home sales, median sale price, total dollar volume and luxury sales”
MIAMI March 22, 2019
Broward County mid-market home sales and median prices rose in February, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Uncertainty over mortgage interest rates and the stock market may have impacted Broward County total home sales in February.
“Broward real estate is coming off a strong 2018 that saw the market post year-over-year gains in total home sales, median sale price, total dollar volume and luxury sales,” said Broward-MIAMI President Jonathan Keith, a Fort Lauderdale broker. “Total home sales declined in February because of uncertainty over mortgage interest rates.”
Total Home Sales Decrease in February Due in Part to Higher Interest Rates
Total Broward County sales decreased 9.9 percent year-over-year in February 2019, from 2,278 to 2,051. The decrease is mostly due to higher interest rates and lack of inventory in lower price points.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 4.37 percent in February from 4.46 percent in January. Despite the monthly decline in average commitment rate for mortgages, many closings in February were impacted by the higher rates because of when the rates were locked in and how long it takes to close. The median number of days between the listing date and closing date for single-family homes was 97 days; 102 for condos.
Broward single-family home sales decreased 8.6 percent, from 1,026 to 938. Condo sales decreased 11.1 percent, from 1,252 to 1,113. Total sales volume decreased 9.3 percent to $657.9 million in February 2019. Single-family home dollar volume decreased 5.8 percent from $449.4 million to $423.4 million. Condo dollar volume decreased 15 percent from $275.8 million to $234.5 million.
Lack of access to mortgage loans continues to inhibit further growth of the existing condominium market. Of the 9,307 condominium buildings in Miami-Dade and Broward counties, only 12 are approved for Federal Housing Administration loans, down from 29 last year, according to Florida Department of Business and Professional Regulation and FHA.
Broward Mid-Market Home Sales Increase in February
Broward single-family home sales priced between $400K and $600K increased 8.4 percent to 219 sales in February 2019. Broward condo sales priced between $400K and $600K increased 31.1 percent year-over-year to 59 sales in February 2019.
Broward Median Prices Rise for Single-Family Homes, Condos
Broward County single-family home prices rose 4.5 percent year-over-year, from $335,000 to $350,000. Condo median sale prices increased 1.3 percent from $158,000 to $160,000. Growth in the middle of a real estate market is an indicator of a stable market.
Broward Distressed Sales Continue to Drop, Reflecting Healthy Market
Only 4.7 percent of all closed residential sales in Broward were distressed in February 2019, including REO (bank-owned properties) and short sales, compared 4.4 percent in February 2018.
Total Broward distressed sales decreased 4 percent year-over-year, from 100 to 96.
Short sales and REOs accounted for 1.1 and 3.2 percent, respectively, of total Broward sales in January 2019. Short sale transactions decreased 25.8 percent year-over-year while REOs increased 5.8 percent.
Nationally, distressed sales accounted for 4 percent of sales, equal to the percentage a year ago, according to NAR.
Broward Real Estate Selling Close to List Price
The median number of days between listing and contract dates for Broward single-family home sales was 56 days, a 27.3 percent increase from 44 days last year. The median number of days between the listing date and closing date for single-family homes was 97 days, a 14.1 percent increase from 85 days.
The median time to contract for condos was 62 days, an 8.8 increase from 57 days. The median number of days between the listing date and closing date for condos was 102 days, a 4.1 percent increase from 98 days.
The median percent of original list price received for single-family homes was 95.3 percent. The median percent of original list price received for existing condominiums was 93.8percent.
National and State Statistics
Nationally, total existing-home sales shot up 11.8 percent from January to a seasonally adjusted annual rate of 5.51 million in February. However, sales are down 1.8 percent from a year ago (5.61 million in February 2018).
Statewide closed sales of existing single-family homes totaled 18,966 last month, up 1.9 percent compared to February 2018, according to Florida Realtors. Looking at Florida’s condo-townhouse market in February, statewide closed sales totaled 7,981, down 5.7 percent compared to a year ago.
The national median existing-home price for all housing types in February was $249,500, up 3.6 percent from February 2018 ($240,800). February's price increase marks the 84th straight month of year-over-year gains.
In February, statewide median sales prices for both single-family homes and condo-townhouse properties increased year-over-year for the 86th consecutive month. The statewide median sales price for single-family existing homes was $250,000, up 1.3 percent from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $187,500, up 4.7 percent over the year-ago figure.
Broward Cash Buyers Represent Almost Double the National Figure
Broward cash transactions comprised 41.4 percent of February 2019 total closed sales, compared to 45.9 percent last year. Broward cash transactions are almost double the national figure (23 percent).
Condominiums comprise a large portion of Broward’s cash purchases as 56.2 percent of condo closings were made in cash in January compared to 23.9 percent of single-family home sales.
Seller’s Market for Broward Single-Family Homes, Balanced Market for Condos
Months supply of inventory for single-family homes increased 20 percent to 4.8 months, which indicates a seller’s market. Existing condominiums have a 6.4-month supply, which also indicates a seller’s market. A balanced market between buyers and sellers offers between six and nine months of supply.
Although still in a seller’s market, the increase is positive, as high demand and insufficient supply were resulting in a housing shortage and negatively impacting sales.
Total active listings at the end of February increased 11.5 percent year-over-year, from 13,601 to 15,164. Inventory of single-family homes increased 16.5 percent in February from 5,274 active listings last year to 6,145 in February 2019. Condominium inventory increased 8.3 percent to 9,019 from 8,327 listings during the same period in 2018.
New listings of Broward single-family homes decreased 5.9 percent to 1,898 from 2,016. New listings of condominiums decreased 6.6 percent, from 2,401 to 2,242.
Nationally, total housing inventory at the end of February increased to 1.63 million, up from 1.59 million existing homes available for sale in January, a 3.2 percent increase from 1.58 million a year ago. Unsold inventory is at a 3.5-month supply at the current sales pace, down from 3.9 months in January but up from 3.4 months in February 2018.
To access February 2019 Broward County Statistical Reports, visit http://www.SFMarketIntel.com
Note: Statistics in this news release may vary depending on reporting dates. MIAMI reports exact statistics directly from its MLS system.
About the MIAMI Association of Realtors
The MIAMI Association of Realtors was chartered by the National Association of Realtors in 1920 and is celebrating 99 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of six organizations, the Residential Association, the Realtors Commercial Alliance, the Broward-MIAMI Association of Realtors, the Jupiter Tequesta Hobe Sound (JTHS-MIAMI) Council, the Young Professionals Network (YPN) Council and the award-winning International Council, it represents 50,000 real estate professionals in all aspects of real estate sales, marketing, and brokerage. It is the largest local Realtor association in the U.S. and has official partnerships with 212 international organizations worldwide. MIAMI’s official website is http://www.MiamiRealtors.com
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