Broward County total luxury home sales surged year-over-year in March as single-family home sales rose, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Broward luxury home sales jumped 33.3 percent year-over-year in March, from 78 to 104. Broward single-family home sales rose 1.3 percent, from 1,338 to 1,355.
“Broward luxury condo sales, which increased 48.6 percent in 2018, continued rising in March,” said Broward-MIAMI President Jonathan Keith, a Fort Lauderdale broker. “There is strong pent-up demand for Broward luxury condos and for Broward real estate.”
Total Home Sales Decrease 1.2 Percent in March
Total Broward County sales decreased 1.2 percent year-over-year in March 2019, from 2,863 to 2,830. 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 4.27 percent in March from 4.37 percent in February. The average commitment rate across all of 2018 was 4.54 percent.
Broward single-family home sales increased 1.3 percent, from 1,338 to 1,355. Condo sales decreased 3.3 percent, from 1,525 to 1,475.
Total sales volume increased from $911.6 million in March 2018 to $944.1 million in March 2019. Single-family home dollar volume increased 4.3 percent from $578 million to $603 million. Condo dollar volume increased 2.3 percent from $333.6 million to $341.1 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.
Broward Luxury Home Sales Jump 33.3 Percent in March
Broward luxury ($1-million-and-up) home sales jumped 33.3 percent year-over-year in March, from 78 to 104.
Broward condo luxury home sales increased 57.1 percent year-over-year, from 21 to 33. Broward single-family luxury home sales increased 24.6 percent, from 57 to 71.
Broward Median Prices Rise for Single-Family Homes, Condos
Broward County single-family home prices rose 4.1 percent year-over-year, from $350,500 to $365,000. Condo median sale prices increased 4.3 percent from $162,500 to $169,525.
Broward Distressed Sales Continue to Drop, Reflecting Healthy Market
Only 4.1 percent of all closed residential sales in Broward were distressed in March 2019, including REO (bank-owned properties) and short sales, compared 4.2 percent in March 2018.
Total Broward distressed sales decreased 4.2 percent year-over-year, from 120 to 115.
Short sales and REOs accounted for 0.9 and 3.1 percent, respectively, of total Broward sales in March 2019. Short sale transactions decreased 10.3 percent year-over-year, from 29 to 26. REOs decreased 2.2 percent, from 91 to 89.
Nationally, distressed sales represented 3 percent of sales in March, down from 4 percent last month and down from 4 percent in March 2018. One percent of March 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 55 days, a 34.1 percent increase from 41 days last year. The median number of days between the listing date and closing date for single-family homes was 95 days, a 14.5 percent increase from 83 days.
The median time to contract for condos was 49days, a 5.8 percent decrease from 52 days. The median number of days between the listing date and closing date for condos was 90 days, a 4.3 percent decrease from 94 days.
The median percent of original list price received for single-family homes was 95.5 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 fell 4.9 percent from February to a seasonally adjusted annual rate of 5.21 million in March. Sales are down 5.4 percent from a year ago (5.51 million in March 2018).
Statewide closed sales of existing single-family homes totaled 25,013 last month, about the same level as March 2018, according to Florida Realtors. Looking at Florida’s condo-townhouse market in March, statewide closed sales totaled 10,340, down 6.1 percent compared to a year ago.
The national median existing-home price for all housing types in March was $259,400, up 3.8 percent from March 2018 ($249,800). March’s price increase marks the 85th straight month of year-over-year gains.
In March, statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year for the 87th month-in-a-row. The statewide median sales price for single-family existing homes was $256,000, up 2 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 $189,500, up 3.6 percent 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 37.8 percent of March 2019 total closed sales, compared to 41.6 percent last year. Broward cash transactions are almost double the national figure (21 percent).
Condominiums comprise a large portion of Broward’s cash purchases as 54.6 percent of condo closings were made in cash in March compared to 19.4 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 14.6 percent to 4.7 months, which indicates a seller’s market. Existing condominiums have a 6.3-month supply, which indicates a balanced market. A balanced market between buyers and sellers offers between six and nine months of supply.
Although still in a seller’s market for single-family homes, 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 March increased 8.7 percent year-over-year, from 13,661 to 14,844. Inventory of single-family homes increased 13.7 percent in March from 5,320 active listings last year to 6,051 in March 2019. Condominium inventory increased 5.4 percent to 8,793 from 8,341 listings during the same period in 2018.
New listings of Broward single-family homes decreased 1.6 percent to 2,091 from 2,126. New listings of condominiums decreased 8.2 percent, from 2,425 to 2,227.
Nationally, total housing inventory at the end of March increased to 1.68 million, up from 1.63 million existing homes available for sale in February and a 2.4% increase from 1.64 million a year ago. Unsold inventory is at a 3.9-month supply at the current sales pace, up from 3.6 months in February and up from 3.6 months in March 2018.
To access March 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.