Broward County Real Estate Total Home Sales Surge in July 2019
MIAMI (PRWEB) August 21, 2019 -- Broward County total home sales jumped nearly double digits as median price, dollar volume and luxury transactions rose for all properties, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Broward total home sales increased 9.7% year-over-year, from 2,900 to 3,181. Broward single-family home sales rose 11.9%, from 1,460 to 1,634. Broward condos increased 7.4%, from 1,440 to 1,547.
“High earners from tax-burdened states continue choosing Broward County,” said Broward-MIAMI President Jonathan Keith, a Fort Lauderdale broker. “Uncomfortable with high taxes and regulation in places like New York, New Jersey and Connecticut, more northern home buyers are moving to South Florida, where there is no state income tax and it’s cheaper to buy and maintain a home.”
Total Home Sales Jump 9.7% in July
Broward total home sales increased 9.7% year-over-year, from 2,900 to 3,181. Broward single-family home sales rose 11.9%, from 1,460 to 1,634. Broward condos increased 7.4%, from 1,440 to 1,547.
Broward single-family home luxury sales ($1-million-and-up) increased 39.3% year-over-year to 85 transactions. Broward condo luxury sales rose 15.8% to 22 transactions.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 3.77% in July, down from 3.80% in June. The average commitment rate across all of 2018 was 4.54%.
Single-family home dollar volume increased 20.3% from $644.7 million to $775.8 million. Condo dollar volume increased 13.8% percent from $302.3 million to $344.1 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.
The aforementioned could change as a result of a new condo approval process. The new guidance extends certifications from two years to three, allows for single-unit mortgage approvals, provides more flexibility with owner/occupancy ratios, and increases the allowable number of FHA loans in a single project. The changes, many of which MIAMI and NAR has championed, should yield thousands of new homeownership opportunities. The rule will go into effect in mid-October.
Broward Median Prices Rise for Single-Family Homes
Broward single-family home median prices increased 5.6%, from $360,000 to $380,000. Condo median sale prices increased 4.5% from $165,000 to $172,500.
Broward Distressed Sales Continue to Drop, Reflecting Healthy Market
Only 3.3% of all closed residential sales in Broward were distressed in July 2019, including REO (bank-owned properties) and short sales, compared 5.3% in July 2018.
Total Broward distressed sales decreased 32.3% year-over-year, from 155 to 105.
Short sales and REOs accounted for 0.7% and 2.6%, respectively, of total Broward sales in July 2019. Short sale transactions decreased 42.1% year-over-year, from 38 to 22. REOs decreased 29.1%, from 117 to 83.
Nationally, distressed sales represented 2% of sales in July, unchanged from June but down from 3% in July 2018. Less than 1% of July 2019 sales were short sales.
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 43 days, a 13.2% increase from 38 days last year. The median number of days between the listing date and closing date for single-family homes was 85 days, a 7.6% increase from 79 days.
The median time to contract for condos was 53 days, a 1.9% increase from 52 days. The median number of days between the listing date and closing date for condos was 96 days, a 2.1% increase from 94 days.
The median percent of original list price received for single-family homes was 96.0 percent. The median percent of original list price received for existing condominiums was 94.4 percent.
National and State Statistics
Nationally, total existing-home sales rose 2.5% from June to a seasonally adjusted annual rate of 5.42 million in July. Overall sales are up 0.6% from a year ago (5.39 million in July 2018).
Statewide closed sales of existing single-family homes totaled 28,142 last month, up 10.4% from July 2018., according to Florida Realtors. Florida’s condo-townhouse market totaled 10,470, up 4.3% compared to a year ago.
The national median existing-home price for all housing types in July was $280,800, up 4.3% from July 2018 ($269,300). July’s price increase marks the 89th straight month of year-over-year gains.
In July, statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year for 91 consecutive months. The statewide median sales price for single-family existing homes was $268,000, up 5.1% 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 $188,000, up 4.4% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Broward Cash Buyers Represent Almost Double the National Figure
Broward cash transactions comprised 33.3% of July 2019 total closed sales, compared to 35.1% last year. Broward cash transactions are almost double the national figure (19%).
Condominiums comprise a large portion of Broward’s cash purchases as 50.0% of condo closings were made in cash in June compared to 17.4% of single-family home sales.
Seller’s Market for Broward Real Estate
Months supply of inventory for single-family homes stayed even at 4.2 months, which indicates a seller’s market. Existing condominiums have a 5.6-month supply, which also indicates a seller’s market. A balanced market between buyers and sellers offers between six and nine months of supply.
Total active listings at the end of July increased 2.3% year-over-year, from 13,095 to 13,394. Inventory of single-family homes increased 1.7% in July from 5,467 active listings last year to 5,562 in July 2019. Condominium inventory increased 2.7% to 7,832 from 7,628 listings during the same period in 2018.
New listings of Broward single-family homes decreased 5.5% from 1,994 to 1,884. New listings of condominiums decreased 2.3%, from 1,972 to 1,926.
Nationally, total housing inventory at the end of July decreased to 1.89 million, down from 1.92 million existing-homes available for sale in June, and a 1.6% decrease from 1.92 million one year ago. Unsold inventory is at a 4.2-month supply at the current sales pace, down from the 4.4 month-supply recorded in June and down from the 4.3-month supply recorded in July of 2018.
To access July 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 47,000 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 215 international organizations worldwide. MIAMI’s official website is http://www.MiamiRealtors.com
Lynda Fernandez, MIAMI Association of Realtors, http://www.MiamiRealtors.com, 3054687040, [email protected]
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