Residential Real Estate News
Greater Fort Lauderdale Area Enjoys Record Setting Home Sales in 2021
According to the Miami Association of Realtors, Broward County Florida total home sales rose year-over-year in November 2021 as the market extended its historic 2021 sales streak that has already seen Broward establish an all-time total annual home sales record.
Broward County total home sales increased 0.9% year-over-year in November 2021, from 2,927 sales to 2,954. Broward single-family home transactions decreased 6.2%, from 1,447 to 1,358 because of lack of inventory and Covid19 comps (stats are in comparison to major rebound demand last year). Broward existing condo sales increased 7.8%, from 1,480 to 1,596.
"Broward County is seeing robust demand domestically and internationally and the sales volume would be even higher if there was more inventory," Broward-MIAMI President Patrick Simm said. "We expect inventory to rise by spring 2022 as the falling number of homeowners in mortgage forbearance bring about more inventory."
Broward County set a record for most annual home sales last month. Year-to-date, Broward has registered 37,121 existing total homes sales in 11 months. The previous annual record of 33,891 transactions was established in the entire year of 2016.
Broward Luxury Sales Jump as Northeast and West Coast Buyers Move to Mega Region
Broward single-family luxury ($1-million-and-up) transactions rose 52.7% year-over-year to 168 sales in November 2021. Broward existing condo luxury ($1-million-and-up) sales surged 38.5% year-over-year to 54 transactions.
There are 3.1 months of supply in luxury single-family homes; 5.1 months of supply in luxury condos. Luxury months of supply continue to trend downward for all property types, month-over-month, and year-over-year.
Low interest rates; a robust S&P 500; the appeal of stable assets in a volatile economy; homebuyers leaving tax-burdened Northeastern states to purchase in Florida (no state income tax); and work-from-home and remote-learning policies have all combined to create a robust market for luxury single-family properties.
With global vaccinations rising and unstable political situations around the world, South Florida is seeing an increase in foreign homebuyers. Global buyers are coming here for the vaccine and purchasing property.
Vaccinated foreigners were allowed to resume travel to the U.S. starting on Nov. 8 and that will lead to more international investment in South Florida - the No. 1 destination for foreign buyers. Global buyers purchase in Miami because Miami is a world-class global city with better real estate prices than other similar global cities. Foreign buyers feel at home with our incredible diversity and acceptance of all cultures.
Broward single-family homes priced between $400K to $600K increased 8.4% year-over-year to 497 transactions in November 2021. Broward existing condo sales priced between $400K to $600K increased 55.9% to 173 transactions.
New Listings for Single-Family Rise; Low-Supply/High-Demand Market for Broward
There is always a seasonal fade in inventory in the fall and winter. More inventory is expected to come to the market by spring 2022 as potential home sellers become more comfortable listing and showing their homes. The falling number of homeowners in mortgage forbearance will also bring about more inventory. Expectation that interest rates will rise should continue to drive demand in the first quarter of 2022.
New listings of Broward single-family homes increased 2.9% to 1,438 from 1,397. New listings of condominiums decreased 10.8%, from 1,967 to 1,755.
Inventory of single-family homes decreased 34.1% year-over-year in November 2021 from 3,086 active listings last year to 2,033 last month. Condominium inventory decreased 56.6% year-over-year to 3,307 from 7,628 listings during the same period in 2020.
Months' supply of inventory is down since July 2019 for single-family, reflecting strong demand. Months' supply of inventory for single-family homes decreased 45.8% to 1.3 months, which indicates a seller's market. Inventory for existing condominiums decreased 70.5% to 1.8 months, which indicates a seller's market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Total active listings at the end of November 2021 decreased 50.1% year-over-year, from 10,694 to 5,340.
Nationally, total housing inventory at the end of November amounted to 1.11 million units, down 9.8% from October and down 13.3% from one year ago (1.28 million). Unsold inventory sits at a 2.1-month supply at the current sales pace, a decline from both the prior month and from one year ago.
Broward Homeowners' Home Equity Continues Surging as Many Pay Lower Mortgage Payments
With interest rates still at record lows, many South Florida homeowners have refinanced their home loans. So not only are many homeowners paying lower mortgage payments today; they are doing so while their wealth (home equity) has significantly increased. Home equity can be tapped for renovations, college loans and more.
Broward County single-family median prices increased 14.1% year-over-year in November 2021, increasing from $425,000 to $485,000. Existing condo median prices increased 14% year-over-year, from $204,000 to $232,500.
The greater share of Broward luxury sales in 2021 compared to a year ago is part of the reason for the large year-over-year increase in median prices.
Rising median prices is a trend nationwide as record-low mortgages rates and the increased availability of remote work and education has accelerated the demand for housing. Low inventory relative to high demand leads to prices rising.
Lower mortgage rates are making home purchases more affordable. According to Freddie Mac, the average commitment rate a 30-year, conventional, fixed-rate mortgage was 3.07 in November, equal to October's rate. The average commitment rate across all of 2020 was 3.11%.
NAR Chief Economist Lawrence Yun expects the 30-year fixed mortgage rate to increase to 3.7% by the end of 2022. It would be still lower than the pre-pandemic rate of 4%.
Should mortgage rates resume their upward climb, home price growth is likely to slow in response. As more sellers list properties in 2021 and 2022, the increased inventory should ease the growth of median prices.
Miami remains a bargain compared to other global cities. In Miami, $1 million can net homebuyers 85 square meters of prime property, according to Knight Frank's 2021 The Wealth Report. Monaco (15 square meters), Hong Kong (23), London (31), New York (34) and Geneva (35) and others offer significantly less prime land for $1 million.
Broward Dollar Volume Totals $1.4 Billion, Showcasing Impact Housing Plays in Local Economy
While other industries struggled over the past year, housing lifted the economy nationally and locally. For every two homes sold in the U.S., one job is created. Broward dollar volume showcases the impact housing plays in the local economy.
Broward total dollar volume totaled $1.4 billion in November 2021. Single-family home dollar volume increased 18.2% year-over-year, from $808 million to $955 million. Condo dollar volume increased 16.2% year-over-year, from $418 million to $486 million.
Broward Distressed Sales Keep Dropping, Reflecting Healthy Market
Only 0.7% of all closed residential sales in Broward were distressed last month, including REO (bank-owned properties) and short sales, compared to 1.8% in November 2020.
Total Broward distressed sales decreased 60.4% year-over-year in November 2021, from 53 to 21. Short sales and REOs accounted for 0.5% and 0.7% year-over-year, respectively, of total Broward sales in November 2021. Short sale transactions increased 7.1% year-over-year while REOs decreased 43.6%.
Nationally, distressed sales represented less than 1% of sales in November 2021, equal to the percentage in November 2020.
National, State Housing Demand Robust as More Inventory Expected to Arrive
Nationally, total existing-home sales transactions completed transactions that include single-family homes, townhomes, condominiums and co-ops, grew 1.9% from October to a seasonally adjusted annual rate of 6.46 million in November. Sales fell 2.0% from a year ago (6.59 million in November 2020).
Statewide, sales of single-family homes statewide last month totaled 27,541, up 4.3% year-over-year, while existing condo-townhouse sales totaled 11,598, down 5.4% from November 2020. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, the median existing-home price for all housing types in November was $353,900, up 13.9% from November 2020 ($310,800), as prices increased in each region, with the highest pace of appreciation in the South region. This marks 117 straight months of year-over-year increases, the longest-running streak on record.
The statewide median sales price for single-family existing homes in November was $364,900, up 19.6% 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 $273,270, up 19.9% over November 2020. The median is the midpoint; half the homes sold for more, half for less.
Broward Real Estate Attracting Multiple Bids, Buyers Going Over-List Price
The median percent of original list price received for single-family homes was 100% in November 2021, up 2.4% from 97.7% last year. The median percent of original list price received for existing condominiums was 98.2%, up 2.9% from 95.4% last year.
The median number of days between listing and contract dates for Broward single-family home sales was 15 days, a 25% decrease from 20 days last year. The median time to sale for single-family homes was 58 days, a 10.8% decrease from 65 days last year.
The median number of days between the listing date and contract date for condos was 21 days, down 51.2% from 43 days. The median number of days to sale for condos was 63 days, a 25.9% decrease from 85 days.
Broward Cash Sales More than Double National Figure in November 2021
Cash sales represented 55% of Broward closed sales in November 2021, compared to 31.4% in November 2020. About 24% of U.S. home sales 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 as well as some moving from more expensive U.S. markets who can buy more with their profits from real estate sales.
Cash sales accounted for 52.9% of all Broward existing condo sales and 23.7% of single-family transactions.
