MIAMI (STL.News) – Broward County single-family home median prices and new pending sales increased year-over-year in June, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Total sales declined last month mainly due to lack of supply in certain price points, but they are expected to increase in the future because of declining mortgage rates, increased consumer confidence and demand from high earners in tax-burdened states.
“Broward’s unique live-work-and-play lifestyle and low mortgage rates continue attracting home buyers to our market,” said Broward-MIAMI President Jonathan Keith, a Fort Lauderdale broker.
Total Home Sales Decrease in June
Total Broward County sales decreased 14.5% year-over-year in June 2019, from 3,454 to 2,954. Coming off a robust May that pointed to growing demand, Broward home sales declined last month. Home sales also declined statewide and nationally. Year-to-date, however, Broward single-family home sales are down just 0.6%.
Broward single-family home sales declined 11.2%, from 1,648 to 1,464. Broward condo sales decreased 17.5%, from 1,806 to 1,490.
Broward single-family home median prices increased 0.7%, from $367,500 to $369,900. New pending single-family home sales rose 10%, from 1,571 to 1,728.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 3.80% in June, down from 4.07% in May. The average commitment rate across all of 2018 was 4.54%.
Total sales volume decreased from $1.24 billion in June 2018 to $1.02 billion in June 2019. Single-family home dollar volume decreased 10.3% from $761.8 million to $683.4 million. Condo dollar volume decreased 29.6% percent from $478.5 million to $337 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 Median Prices Rise for Single-Family Homes
Broward single-family home median prices increased 0.7%, from $367,500 to $369,900. Condo median sale prices decreased 5.7% from $185,000 to $174,500.
Broward Distressed Sales Continue to Drop, Reflecting Healthy Market
Only 2.9% of all closed residential sales in Broward were distressed in June 2019, including REO (bank-owned properties) and short sales, compared 4.2% in June 2018.
Total Broward distressed sales decreased 40.4% year-over-year, from 146 to 87.
Short sales and REOs accounted for 0.8% and 2.2%, respectively, of total Broward sales in June 2019. Short sale transactions decreased 42.5% year-over-year, from 40 to 23. REOs decreased 39.7%, from 106 to 64.
Nationally, distressed sales represented 2% of sales in June, unchanged from May but down from 3% in June 2018. Less than 1% of June 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 39 days, a 25.8% increase from 31 days last year. The median number of days between the listing date and closing date for single-family homes was 83 days, a 7.8% increase from 77 days.
The median time to contract for condos was 57 days, a 50% increase from 38 days. The median number of days between the listing date and closing date for condos was 96 days, a 17.1% increase from 82 days.
The median percent of original list price received for single-family homes was 96.3 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 dropped 1.7% from May to a seasonally adjusted annual rate of 5.27 million in June. Sales as a whole are down 2.2% from a year ago (5.39 million in June 2018).
Statewide closed sales of existing single-family homes totaled 27,283 last month, down 1.9% from June 2018, according to Florida Realtors. Florida’s condo-townhouse market had 10,094 sales, down 9.4% compared to a year ago.
The national median existing-home price for all housing types in June reached an all-time high of $285,700, up 4.3% from June 2018 ($273,800). June’s price increase marks the 88th straight month of year-over-year gains.
June’s statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year for 90 months in a row. The statewide median sales price for single-family existing homes was $270,000, up 3.8% 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 $194,900, up 2.6% over the year-ago figure.
Broward Cash Buyers Represent More than Double the National Figure
Broward cash transactions comprised 33.5% of June 2019 total closed sales, compared to 32.6% last year. Broward cash transactions are almost double the national figure (16%).
Condominiums comprise a large portion of Broward’s cash purchases as 50.5% of condo closings were made in cash in June compared to 16.2% of single-family home sales.
Seller’s Market for Broward Single-Family Homes
Months supply of inventory for single-family homes increased 2.4% to 4.3 months, which indicates a seller’s market. Existing condominiums have a 5.9-month supply, which indicates a seller’s 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 June increased 4.7% year-over-year, from 13,109 to 13,720. Inventory of single-family homes increased 4.5% in June from 5,411 active listings last year to 5,652 in June 2019. Condominium inventory increased 4.8% to 8,068 from 7,698 listings during the same period in 2018.
New listings of Broward single-family homes decreased 7.7% from 2,040 to 1,882. New listings of condominiums decreased 7.7%, from 2,092 to 1,931.
Nationally, total housing inventory at the end of June increased to 1.93 million, up from 1.91 million existing-homes available for sale in May, but unchanged from the level of one year ago. Unsold inventory is at a 4.4-month supply at the current sales pace, up from the 4.3 month supply recorded in both May and in June 2018.
To access June 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 214 international organizations worldwide. MIAMI’s official website is http://www.MiamiRealtors.com