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MIAMI : Median single-family home prices in Broward County year-over-year in June 2020, as home sales continued to trend up despite the global COVID-19 situation, according to the Association of Realtors MIAMI (MIAMI) and Multiple Listing Service (MLS) system.
New home sales pending in June have increased year over year. Pending sales are a future indicator of closings for one to two months. New pending sales of Broward single-family homes increased by 21.2% year-over-year to 2,095. New pending condo sales increased 1.6% in June to 1,708.
"The Broward County housing market continues its remarkable recovery, as evidenced by increased pending sales and increased market activity," said Broward MIAMI President Sharon R. Lindblade. "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 started increasing in mid-April and are stronger than before COVID-19 orders to stay at home. Home sales, however, are taking longer to close. Time to hire single-family homes in Broward increased 12.8% year-over-year in June, from 39 days to 44 days. Social distancing and shelter-in-place orders are in some cases delaying the home buying process, including home inspections, appraisals and walk-ins.
Mortgage applications, another indicator of future sales, are increasing in South Florida and nationally as the Miami mega region continues to see additional interest in Northeast home purchases. The Mortgage Bankers Association (MBA) reported that mortgage applications increased by 5.1% week-over-week for the week ending July 10.
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 real estate 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 5.4% year-over-year in June 2020, increasing from $ 369,900 to $ 390,000. Existing condo prices increased 13.8% year-over-year, from $ 174,500 to $ 198,500.
Decrease in Total Broward Home Sales
Total Broward home sales decreased by 21% year-over-year in June 2020, from 2,954 to 2,333. Single-family home sales in Broward decreased by 10.3% year-over-year in June 2020, from 1,464 to 1,313. Existing condo transactions in Broward decreased by 31.5% year-over-year in June 2020, from 1,490 to 1,020.
The volume of the dollar decreases
Single-family home dollar volume decreased 4.3% year-over-year, from $ 683.4 million to $ 654.1 million. The dollar volume of condominiums decreased by 28.4% year-over-year, from $ 337 million to $ 241.3 million.
According to Freddie Mac, the average commitment rate for a conventional 30-year fixed-rate mortgage decreased to 3,16% in June, compared to 3,23% in May. The average engagement rate in 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 3.8% of all closed residential sales in Broward County suffered problems last month, including REOs (bank owned) and short sales, compared to 2.9% in June 2020.
Total distressed Broward sales decreased 2.3%, from 87 to 89.
Short sales and REOs accounted for 0.6% and 3.3% YoY, respectively, of Broward's total sales in June 2020. Short sales transactions decreased 43.5% YoY, while REOs increased a 18.8%.
Nationwide, distressed sales accounted for 3% of sales in June, almost on par with May, but up from 2% in June 2019.
Broward Real Estate Selling Near List Price
The median percentage of the original list price received for single-family homes was 96.5% in June, 0.2% more than 96.3% last year. The median percentage of the original list price received for existing condos was 94.6%, 0.2% more than 94.4% last year.
The median number of days between listing and contract dates for the sale of single-family homes in Broward was 44 days, an increase of 12.8% from 39 days last year. The median number of days between the listing date and the closing date of the condominiums was 67 days, an increase of 17.5% of 57 days.
Median sales time for single-family homes was 89 days, an increase of 7.2% from 83 days last year. Median days for condo sales was 111 days, an increase of 15.6% compared to 96 days.
Home sales are taking longer to close. Shelter-in-place and social distancing orders are delaying every step of the home closing, including home inspections, appraisals and walk-ins.
National and state statistics
Nationwide, total existing home sales transactions increased 20.7% from May to a seasonally adjusted annual rate of 4.72 million in June. However, overall sales fell year-over-year, 11.3% less than a year ago (5.32 million in June 2019).
Statewide, closed sales of single-family homes statewide last month increased 1.3% year-over-year, totaling 27,650, while single-family home sales decreased 10.9%, for a total of 8,996. 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 June was $ 295,300, 3.5% more than in June 2019 ($ 285,400), as prices increased in all regions. June's domestic price increase marks 100 consecutive months of year-over-year earnings.
In June, median sales prices statewide for single-family homes and condo properties increased year-over-year for 102 consecutive months. The state median sales price for existing single-family homes was $ 282,000, up 4.4% 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 $ 210,000, 7.7% more than the previous year. 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 27.3% of total June 2020 closed sales, compared to 33.5% last year. The national number of cash buyers is 16%.
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 41.9% of condo closings were for cash in June 2020 compared to 15.9% of single-family home sales.
Single Family Home Sellers Market, Balanced Condo Market
Single-family home inventory decreased 27.7% in June from 5,652 active listings last year to 4,089 last month. Condo inventory decreased 0.8% to 8,002 from 8,062 listings during the same period in 2019.
Monthly inventory supply for single-family homes decreased 20.9% to 3.4 months, indicating a seller's market. Existing condo inventory increased 11.9% to 6.6 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 June decreased 11.9% year-over-year, from 13,720 to 12,091. Active listings remain approximately 60% below 2008 levels when sales bottomed out.
Broward's new single-family home listings decreased 5.8% to 1,772 from 1,882. New condo listings increased by 4.5%, from 1,931 to 2,018.
At the national level, the total inventory of homes at the end of June amounted to 1.57 million units, 1.3% more than in May, but 18.2% less than a year ago (1.92 million). Unsold inventory is in 4.0-month supply at current sales pace, down from 4.8 months in May and 4.3 months in June 2019.
To access Broward statistical reports for June 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.
