Broward County Home Prices Rise in 2Q Due to Strong Demand and Limited Supply
Broward County home prices increased year-over-year in 2Q 2020, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
MIAMI, Aug. 12, 2020 /PRNewswire-PRWeb/ -- Broward County home prices increased year-over-year in 2Q 2020, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Broward single-family home prices increased 5.5% year-over-year, from $365,000 to $385,000. Broward existing condo prices rose 5.7%, from $175,000 to $185,000.
"We are seeing pending contracts and listings again trend upwards and expect there will be pent-up demand later in the year," Broward MIAMI President Sharon R. Lindblade said. "Demand and insufficient supply, particularly in certain price ranges and neighborhoods, will continue to generate price appreciation."
Pending sales began surging in mid-April and are stronger than they were before the COVID-19 stay home orders. New pending sales for Broward single-family homes decreased 15.4% year-over-year, from 5,433 to 4,595. New pending sales for Broward condos decreased 32.9% year-over-year, from 5,384 to 3,610.
Mortgage applications, another indicator of future sales, are on the rise in South Florida and nationally, as the Miami mega region continues to see additional homebuying interest from the Northeast. The Mortgage Bankers Association (MBA) reported that mortgage applications rose by 6.8% this week.
The COVID-19 situation has accelerated the trend of homebuyers from New York and cold weather and tax-burdened Northeastern states searching and purchasing homes in South Florida.
Before the COVID-19 situation, the Broward market was strong. Broward real estate had record low delinquencies, no subprime mortgage crisis, strong demand/low supply, low interest rates, strong population growth, demand from foreign buyers and tax refugees from tax burdened states, high consumer confidence and a strong job market.
Total Broward Sales Declined in 2Q 2020
Broward total home sales decreased 38.5% year-over-year, from 9,471 to 5,827. Broward single-family home sales fell 33.3%, from 4,666 to 3,112. Broward condo sales declined 43.5%, from 4,805 to 2,715.
Broward single-family home dollar volume declined 30.5%, from $2.2 billion to $1.5 billion. Broward condo dollar volume decreased 41.1% to $644.7 million.
Non-distressed sales comprised about 96.5% of all closed residential sales in 2Q 2020 vs. 96.5% in 2Q 2019. Only 3.5% of all closed residential sales in Broward were distressed in 2Q 2020,
including REO (bank-owned properties) and short sales, compared to 3.5% in 2Q 2019.
Short sales and REOs accounted for 0.7% and 2.8%, respectively, of total Broward sales in 2Q 2020. Short sale transactions decreased 50.6% year-over-year while REOs fell 33.2%.
Lower mortgage rates made home purchases more affordable in 2020. The effective 30-year fixed mortgage rate averaged 3.29% in the second quarter of 2020, down from one year ago (4.08%) and from the first quarter of 2020 (3.57%).
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 County neighborhoods with the lowest months of supply of inventory (at least 100 new pending sales) in 2Q 2020:
Single-Family Homes
1. Pembroke Pines, a south Broward city north of Miramar, had 1.5 months supply
2. Coral Springs, a north Broward city north of Tamarac, had 1.6 months supply
3. Sunrise, a north Broward city north of Plantation, had 1.8 months supply
4. Coconut Creek, a north Broward city along the Palm Beach-Broward line, had 2.0 months supply
5. Lauderhill, a central Broward city west of Fort Lauderdale, had 2.8 months supply
Condominiums
1. Miramar, a south Broward city along the Broward-Miami-Dade line, had 3 months supply
2. Coral Springs a north Broward city north of Tamarac, had 3.4 months supply
3. Davie, a south Broward town south of Plantation, had 3.5 months supply
4. Tamarac, a west Broward city north of Sunrise, had 3.6 months supply
5. Margate, a north Broward city north of North Lauderdale, had 4.1 months supply
State and National Stats in 2Q 2020
Closed sales of single-family homes statewide totaled 68,675 in 2Q 2020, down 19.2% from the 2Q 2019 level; closed sales of condo-townhouse properties totaled 22,571, down 33.9% compared to 2Q 2019. Closed sales typically occur 30 to 90 days after sales contracts are written.
The statewide median sales price for single-family existing homes in 2Q 2020 was $277,500, up 4.7% from the same time a year ago, according to data from Florida Realtors Research department in partnership with local Realtor boards/associations. The statewide median price for condo-townhouse properties during the quarter was $207,000, up 6.2% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
The national median existing single-family home price in the second quarter of 2020 was $291,300. On a year-over-year basis, this is a 4.2% climb, however, it is still a slower pace of appreciation compared to the pre-pandemic rate of 7.7% in the first quarter.
Buyer's Market for Single-Family Homes, Balanced Market for Condos
At the current sales pace, the number of active listings represents 3.4 months of inventory for single-family homes and 6.6 for condominiums. A balanced market between buyers and sellers offers between six and nine months of supply inventory.
Broward real estate had 12,091 active listings in 2Q 2020, a 11.9% decrease from the 13,720 listings at the same time last year. The inventory for single-family homes decreased 27.7%, from 5,652 to 4,089. Broward existing condo inventory decreased 0.8%, from 8,068 to 8,002.
Broward Homes Selling Close to List Price
The median percent of original list price received was 96.5% for single-family homes and 94.5% for condos in 2Q 2020.
The median time to contract for single-family home listings was 41 days, a 4.7% decrease from 43 days in 2Q 2019. The median time to contract for existing condos was 56 days, the same number from 2Q 2019.
The median time to sale for single-family homes stayed the same at 84 days. The median time to sale for existing condos increased 3.1%, from 96 to 99
Broward Cash Sales Higher than National Figure
Cash sales represented 28% of Broward closed sales in 2Q 2020, compared to 34.6% in 2Q 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 South Florida's top position as the preeminent American real estate market for foreign buyers, who tend to purchase with all cash.
Cash sales accounted for 43.1% of all Broward existing condo sales and 14.8% of single-family transactions.
2Q 2020 Broward County Statistical Reports — visit 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 100 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 52,000 total 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 223 international organizations worldwide. MIAMI's official website is http://www.MiamiRealtors.com
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SOURCE MIAMI Association of Realtors
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