“The 2018 metrics show a Broward County market on the rise"
MIAMI (PRWEB) February 13, 2019
Broward County total home sales, median sale price, total dollar volume and luxury sales all increased year-over-year in 2018, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Broward’s existing condo market led the charge, posting 17,165 transactions (up 5.2 percent from 2017). Broward’s existing single-family homes market had 15,638 sales, down 0.6 percent from 2017. Lack of supply in certain price ranges and neighborhoods and higher interest rates impacted sales. Decreasing rates are expected to boost sales in coming months.
“The 2018 metrics show a Broward County market on the rise,” said Broward-MIAMI Association of Realtors President Jonathan Keith, a Fort Lauderdale broker. “Not only did the Broward condo market top 17,000 annual transactions and nearly 1,000 more sales versus 2017, the entire market also recorded strong increases in luxury home sales, total dollar volume and median prices.”
Broward Existing Condo Sales Surge Over 17,000 for First Time in Years
Broward County total home sales increased 2.3 percent in 2018, from 32,050 to 32,803.
Broward’s condo market posted 17,165 sales in 2018, up 5.2 percent from 16,310 in 2017. Broward’s existing single-family homes market had 15,638 sales, down 0.6 percent from 2017.
Total Broward Luxury Sales Jump 19.5 Percent
Total Broward luxury ($1 million and up) sales surged 19.5 percent in 2018, from 848 to 1,013.
Broward condo luxury sales increased 48.6 percent in 2018, from 208 to 309. Broward single-family luxury sales increased 10 percent in 2018, from 640 to 704.
There is strong pent-up demand for Broward luxury single-family homes. Luxury sellers are becoming more realistic with their asking prices. Federal tax reform is having an impact as more Northeastern buyers are opting to purchase in Broward to escape the higher taxes they could face in states like New York and New Jersey.
Federal tax reform, which was signed into law Dec. 22, 2017, sets a deductions cap for income, sales and property taxes at $10,000. The new cap could lead more residents of states with high property values and state income tax to purchase properties in states such as Florida, which has no state income tax and a pro-business tax structure.
$10.9 Billion in Broward Home Sales in 2018
Sales volume for all Broward properties in 2018 totaled $10.9 billion, up from $9.9 billion in 2017.
Broward existing single-family homes finished 2018 with a median sales price of $353,500, up 4.6 percent from $338,000 the previous year. The Broward median price for existing condominiums in 2018 was $165,000, an increase of 6.5 percent from $154,900 in 2017.
Hottest Broward Neighborhoods at Year-End 2018
Months’ supply of inventory, which is an important indicator of consumer demand and market performance, reflects limited supply in many neighborhoods and price ranges. As a result, lack of supply is also impacting property sales, particularly for single-family homes.
Top Broward neighborhoods with the lowest months of supply of inventory with significant closed sales activity at year-end 2018:
1. North Lauderdale, a city located east of Tamarac, had 1.2 months supply
2. Pembroke Pines, a south Broward city located just north of Miramar, had 1.4 months supply
3. Coral Springs, a north Broward city located south of Parkland, had 1.6 months supply
4. Lauderdale Lakes, a city located east of Sunrise, had 1.8 months supply
5. Sunrise, a central Broward city located north of Plantation, had 1.9 months supply
1. Cooper City, a south Broward city located south of Davie, had 1.0 months supply
2. Davie, a city located east of Weston, had 1.5 months supply
3. Tamarac, a north Broward city located west of North Lauderdale, had 1.6 months supply
4. Miramar, a south Broward city located along the Miami-Dade line, had 1.7 months supply
5. Oakland Park, a north Broward city located north of downtown Fort Lauderdale, had 1.8 months supply
Broward Real Estate Selling Close to List Price
The average percent of original list price received for single-family homes in 2018 was 96.0 percent in 2018, an increase of 0.1 percent from a year earlier. The median number of days to contract for Broward single-family homes decreased 2.5 percent to 39 days in 2018 from 40 days in 2017.
The median number of days to contract for condominiums sold in 2018 was 49 days, down 12.5 percent from 56 days in 2017. The average percent of original list price received was 94.5 percent, a 0.4 percent year-over-year increase.
State Year-End Statistics
Statewide closed sales of existing single-family homes totaled 277,827 in 2018, up 2.2 percent compared to the 2017 figure, according to Florida Realtors. The statewide median sales price for single-family existing homes in 2018 was $254,505, up 7.2 percent from the previous year.
Looking at Florida’s year-to-year comparison for sales of townhouse-condos, a total of 116,706 units sold statewide in 2018, up 4.9 percent from 2017. The statewide median price for townhouse-condo properties in 2018 was $185,000, up 7.2 percent over the previous year.
The interest rate for a 30-year fixed-rate mortgage averaged 4.54 percent for 2018, up significantly from the previous year’s average of 3.99 percent, according to Freddie Mac.
Broward Cash Buyers Represent Nearly Double the National Figure
In 2018, cash deals represented 37.9 percent of Broward’s total closed sales, which is a decrease from 40.4 percent in 2017. About 20 percent of all U.S. housing sales are made in cash, according to NAR. Broward’s high percentage of cash sales reflects South Florida’s ability to attract a diverse number of international home buyers, who tend to purchase properties in all cash.
Condominiums comprise a large portion Broward’s cash purchases as 53.6 percent of condo closings were made in cash in 2018 compared to 20.6 percent of single-family home sales.
Distressed Property Transactions Continue to Decline in Broward
About 4.5 percent of all closed residential sales in Broward were distressed in 2018, including REO (bank-owned properties) and short sales, compared to 7.4 percent in 2015.
Short sales and REOs accounted for 1.2 and 3.4 percent, respectively, of Broward sales in 2018. Short sale transactions dropped 39.6 percent year-over-year while REOs decreased 36.5 percent. A decline in short sales points to more homeowners with increased equity, which should result in increased market activity.
Seller’s Market for Broward Single-Family Homes, Condos
Inventory of single-family homes increased 21.5 percent in 2018 from 4,740 active listings in 2017 to 5,757 in 2018. Condominium inventory increased 6.7 percent to 8,128 in 2018 from 7,620 listings in 2017. Despite a condo countywide inventory increase, there are inventory shortages in certain price ranges and market segments.
At the end of 2018, inventory for Broward single-family homes stood at a 4.4-month supply, a 22.2 percent increase from 3.6 months in the previous year. Inventory for Broward existing condominiums at the end of 2018 stood at 5.7 months, up 1.8 percent from 5.6 in 2017. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
Total active listings at the end of 2018 increased 12.3 percent year-over-year, from 12,360 to 13,885. Active listings remain about 60 percent below 2008 levels when sales bottomed.
New listings of Broward single-family homes at year-end 2018 increased 5.7 percent from 21,927 to 23,166. New listings of condominiums increased 4.7 percent, from 24,719 to 25,880.
4Q 2017: Broward Single-Family Home, Condo Sales Rise
Broward closed sales of existing single-family homes totaled 3,618 in the fourth quarter of 2018, up 0.3 percent compared to the previous year. Broward existing condo sales totaled 3,998 in 4Q 2018, up 4.9 percent year-over-year.
Statewide closed sales of existing single-family homes totaled 63,483 in the fourth quarter of 2018, up 0.1 percent compared to the year-ago figure, according to Florida Realtors. Looking at Florida’s year-to-year comparison for sales of condos-townhouses, a total of 26,069 units sold statewide in 4Q 2018, up 1.9 percent compared to the same period a year earlier.
Nationally, Total existing-home sales, including single family homes and condos, decreased 1.8 percent to a seasonally adjusted annual rate of 5.180 million in the fourth quarter, down from 5.273 million in the third quarter, according to NAR. That number is 7.4 percent lower than the 5.593 million-pace during the fourth quarter of 2017.
Median sale prices for Miami single-family homes increased 6.6 percent, from $332,925 to $355,000, in 4Q 2018. Condo median prices increased 1.7 percent from $230,000 to $234,000.
The statewide median sales price for existing single-family homes for the quarter was $255,000, up 6.3 percent from 4Q 2017. The statewide median price for condo-townhouse properties in 4Q 2018 was $184,000, up 5.1 percent over the previous year.
The national median existing single-family home price in the quarter was $257,600, up 4.0 percent from the fourth quarter of 2017 ($247,800).
New listings of Broward single-family homes for sale in 4Q 2018 increased 5.8 percent compared to the same quarter the previous year, from 4,636 to 4,904. New listings for existing condos in 4Q 2018 increased 0.8 percent from 5,883 to 5,929.
To access Year-end 2018, 4Q 2018 and Local Residential Market Metrics Year-end 2018 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 204 international organizations worldwide. MIAMI’s official website is http://www.MiamiRealtors.com