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MIAMI - Median single-family home prices in Broward County increased year-over-year in May 2020, as home sales experienced expected declines due to the global COVID-19 situation, according to the MIAMI Association of Realtors ( MIAMI) and the Multiple Listing Service (MLS).
While the latest data shows lower levels of closed sales compared to a year ago, new pending sales in May recovered compared to April. New single-family home sales pending in Broward decreased 9.5%, an improvement over April's decrease of 54.7%. New pending condo sales decreased by 33% in May, an improvement over the decrease of 63.8% in April.
“The Broward County housing market is already experiencing a remarkable recovery, as evidenced by the increase in pending sales since mid-April despite the impact of COVID-19 on May sales,” said Sharon R. Lindblade, President by Broward MIAMI. "The strong fundamentals of the South Florida housing market, pent-up demand and low mortgage rates will lead to increased buying activity in the coming months."
Pending sales, which began to rise in mid-April and are stronger than they were before COVID-19 stay-at-home orders, are expected to drive an increase in closed sales in the coming months.
Mortgage applications are on the rise in South Florida and nationally and the Miami mega region continues to see additional interest in Northeast home purchases. Nationwide, mortgage applications to buy a home increased 4% last week from the previous week and were a notable 21% higher than a year ago, according to the seasonally adjusted index from the Mortgage Bankers Association published on 17 of June. and the highest volume in more than 11 years.
The COVID-19 situation has accelerated the trend for New York and other Northeast states homebuyers with tax burdens seeking and buying homes in South Florida.
Prior to the COVID-19 situation, Broward's real estate sector was in record delinquency, no subprime mortgage crisis, strong demand / low supply, low interest rates, strong population growth, demand from foreign buyers and refugees. states with tax burdens, high consumer confidence and a strong job market.
Increasing Median Single Family Home Prices in Broward
Strong demand coupled with limited supply continues to drive price appreciation in Broward.
Single-family home prices in Broward County increased 0.7% year-over-year in May 2020, increasing from $ 370,000 to $ 372,500. Existing condo prices decreased 2.8% year over year, from $ 180,000 to $ 175,000.
Decrease in Total Broward Home Sales
Total Broward home sales decreased 54.7% year-over-year in May 2020, from 3,376 to 1,529. Single-family home sales in Broward decreased by 51% year-over-year in May 2020, from 1,661 to 814. Existing condo transactions in Broward decreased 58.3% year-over-year in May 2020, from 1,715 to 715.
The volume of the dollar decreases
The dollar volume of single-family homes decreased by 50.8% year-over-year, from $ 774.9 million to $ 381.5 million. Condo dollar volume decreased 56% year-over-year, from $ 391.2 million to $ 172.2 million.
According to Freddie Mac, the average commitment rate for a conventional 30-year fixed-rate mortgage decreased to 3,23% in May, down from 3,31% in April. The average engagement rate for all of 2019 was 3,94%.
Lack of access to home loans continues to inhibit further growth of the existing condo market. Of the 9,307 condo buildings in Miami-Dade and Broward counties, only 13 are approved for loans from the Federal Housing Administration, down from 29 last year, according to the Florida Department of Business and Professional Regulation and the FHA. .
A new condo approval process is expected to boost sales. The new guidance, which went into effect in October 2019, 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 have been promoted by MIAMI and NAR, are expected to create greater homeownership opportunities.
Broward's distressed sales remain low, reflecting a healthy market
Only 4.6% of all closed residential sales in Broward County suffered problems last month, including REOs (bank owned) and short sales, compared to 3.4% in May 2020.
Total distressed Broward sales decreased 38.6%, from 114 to 70.
Short sales and REOs accounted for 1% and 3.5% YoY, respectively, of Broward's total sales in May 2020. Short sales transactions decreased 40.7% YoY while REOs decreased 37%. 9%.
Nationally, distressed sales accounted for 3% of sales in May, almost on par with April, but up from 2% in May 2019.
Broward Real Estate Selling Near List Price
The median percentage of the original list price received for single-family homes was 96.2% in May, 0.2% more than 96% last year. The median percentage of the original list price received for existing condos was 94.1%, 0.2% less than 94.3% last year.
The median number of days between listing and contract dates for the sale of single-family homes in Broward was 33 days, a decrease of 23.3% from 43 days last year. The median number of days between the listing date and the closing date of the condominiums was 49 days, a decrease of 16.9% compared to 59 days.
The median time to sell single-family homes was 76 days, a decrease of 9.5% from 84 days last year. The median number of days for condo sales was 92 days, a decrease of 7.1% compared to 99 days.
National and state statistics
Nationwide, total existing home sales transactions fell 9.7% from April to a seasonally adjusted annual rate of 3.91 million in May. Overall, sales fell year-over-year, 26.6% less than a year ago (5.33 million in May 2019).
Last month's closed sales of single-family homes statewide fell 36.2% year-over-year, totaling 19,622, while condo sales decreased 50.3%, for a total of 6,069. Closed sales can occur 30 to 90 days after sales contracts are written.
The national average price of existing homes for all types of homes in May was $ 284,600, 2.3% more than in May 2019 ($ 278,200), as prices increased in all regions. May's domestic price increase marks 99 consecutive months of year-over-year earnings.
In May, median sales prices statewide for single-family homes and condo properties increased year-over-year for 101 consecutive months. The state median sales price for existing single-family homes was $ 270,000, up 1.5% from the prior year, according to data from the Florida Department of Realtor Research in association with local real estate boards / associations. Last month's state median price for townhouse-condo units was $ 201,472, 3.3% higher than the prior year figure. The median is the midpoint; half of the houses sold for more, half for less.
Top National Broward Cash Buyers Numbers
Broward cash transactions accounted for 29.3% of total May 2020 closed sales, compared to 33.1% last year. The national number of cash buyers is 17%.
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 for cash.
Condos comprise a large portion of Broward's cash purchases, as 42.5% of condo closings were made in cash in May 2020 compared to 17.7% of single-family home sales.
Single Family Home Sellers Market, Balanced Condo Market
Single-family home inventory decreased 18.4% in May from 5,835 active listings last year to 4,762 last month. Condo inventory decreased 0.9% to 8,234 from 8,310 listings during the same period in 2019.
Monthly inventory supply for single-family homes decreased 11.4% to 3.9 months, indicating a seller's market. Inventory of existing condos increased 10.2% to 6.5 months, indicating a balanced market. A balanced market between buyers and sellers offers a supply of between six and nine months.
Total active listings at the end of May decreased by 8.1% year-over-year, from 14,145 to 12,996. Active listings remain approximately 60% below 2008 levels when sales bottomed out.
New listings for single-family homes in Broward decreased 15.7% to 1,755 from 2,081. New condo listings decreased by 5.7%, from 2,015 to 1,901.
At the national level, the total inventory of homes at the end of May was 1.55 million units, 6.2% more than in April and 18.8% less than a year ago (1.91 million). Unsold inventory is at 4.8 months supply at current sales pace, compared to 4.0 months in April and 4.3 months in May 2019.
To access Broward statistical reports for May 2020, visit http://www.SFMarketIntel.com
Note: The statistics in this press release may vary depending on the dates of the reports. MIAMI reports accurate statistics directly from its MLS system.
Buying the home of your dreams, from the comfort of your home.
