MIAMI — Broward County mid-market condominium sales and total South Florida showing appointments increased year-over-year, according to July 2023 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Broward mid-market condominium sales, priced in the $400,000 to $600,000 range, rose 10.3% year-over-year in July 2023 to 215 transactions. South Florida showing appointments, meanwhile, increased for the third consecutive month, jumping 8% year-over-year, from 208,359 in July 2022 to 224,187 in July 2023.
“Whether its luxury homes or mid-market condos, Fort Lauderdale real estate and the Broward market is blessed with a diversified housing stock and unending demand from all types of homebuyers,” BROWARD-MIAMI President Alfredo Pujol said.
Broward Mid-Market Condo Sales Rise Double Digits
It’s difficult to compare today’s home transactions to the roaring 2021-22 era, when mortgage rates hit an all-time low of 2.65%, a worldwide pandemic led to the expansion of remote work and a pandemic-fueled housing boom registered historic sales.
Broward total home sales decreased 13.1% year-over-year in July 2023, from a historic 2,575 transactions in July 2022 to 2,238 in July 2023, because of elevated mortgage rates and lack of supply in certain price points.
Most of the homes purchased in July 2023 came to terms in June when mortgage rates peaked at 6.71%. Rates, in comparison, were 5.09% on June 2, 2022.
Home sales are sensitive to mortgage rate changes. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 7.09% as of August 17. That’s up from 6.96% the prior week and 5.13% one year ago.
Broward single-family home sales decreased 13.3% year-over-year, from 1,213 in July 2022 to 1,052 in July 2023 because of its comparison to a historic month and the current market has lower inventory in specific price points and higher rates.
Broward existing condo sales decreased 12.9% year-over-year, from a historic 1,362 in July 2022 to 1,186 in July 2023, due to lack of inventory and rising mortgage rates.
Broward Home Prices, Household Income Rise with Wealth Migration
Broward County single-family home median prices stayed even year-over-year in July 2023 at $600,000. Existing condo median prices increased 5.7% year-over-year to $280,000 from $265,000.
Historically, a market with less than 6 months of supply will have appreciating prices. Broward single-family homes and existing condos are at 2.8 and 3.5 months, respectively.
“South Florida’s price appreciation continues to outpace the national trend. With more new contracts signed for every new fresh listing, this area is still a seller’s market, especially for single-family homes priced below $600,000, which typically get snapped up in two weeks,” MIAMI REALTORS® Chief Economist Gay Cororaton said.
Local home prices have risen with South Florida’s wealth migration. In-migration boosted South Florida household income by $16 Billion in 2021, according to MIAMI REALTORS® analysis of the 2020-2021 migration data released by the Internal Revenue Service.
New households moving into Miami-Dade in 2021 had an average adjusted gross income of $229,300. New households moving into Broward County had an average adjusted gross income of $102,600. New households moving into Palm Beach County had an average adjusted gross income of $242,200.
Broward Inventory, New Listings Still Near All-Time Lows
The monthly historical average for Broward inventory is 15,411 and current inventory is at 7,311.
Total active listings at the end of July increased 8.7% year-over-year, from 6,726 to 7,311.
Inventory of single-family homes decreased 13.4% year-over-year in July 2023 from 3,313 active listings last year to 2,869 last month. Condominium inventory increased 30.1% year-over-year to 4,442 from 3,413 listings during the same period in 2022.
New listings of Broward single-family homes decreased 25% to 1,451 from 1,935 year-over-year. New listings of condominiums decreased 15%, from 1,975 to 1,678 year-over-year.
Months’ supply of inventory for single-family homes increased 16.7% to 2.8 months year-over-year, which indicates a seller’s market. Inventory for existing condominiums increased 75% to 3.5 months, which also indicates a seller’s market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Nationally, total housing inventory at the end of July was 1.11 million units, up 3.7% from June but down 14.6% from one year ago (1.3 million). Unsold inventory sits at a 3.3-month supply at the current sales pace, up from 3.1 months in June and 3.2 months in July 2022.
Broward Real Estate Posts $273 Million Local Economic Impact in July 2023
Every time a home is sold it impacts the economy: income generated from real estate industries (commissions, fees and moving expenses), expenditures related to home purchase (furniture and remodeling expenses), multiplier of housing related expenditures (income earned as a result of a home sale is re-circulated into the economy) and new construction (additional home sales induce added home production).
The total economic impact of a typical Florida home sale is $122,000, according to NAR. Broward sold 2,238 homes in July 2023 and had a local economic impact of $273 million.
Broward total dollar volume totaled $1.2 billion in July 2023. Single-family home dollar volume decreased 12.27% year-over-year to $836 million. Condo dollar volume decreased 18.57% year-over-year to $399 million.
Broward Distressed Sales Remain Low, Reflecting Healthy Market
Only 0.6% of all closed residential sales in Broward were distressed last month, including REO (bank-owned properties) and short sales, lower than 1.3% in July 2022.
Short sales and REOs accounted for 0% and 0.6% year-over-year, respectively, of total Broward sales in July 2023.
Broward’s percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented 1% of sales in July 2023, virtually unchanged from last month and the prior year.
Broward Median Price Appreciation Outperforming Nation, State
In Florida, closed sales of single-family homes statewide totaled 22,198 in July 2023, down 6.4% year-over-year, while existing condo-townhouse sales totaled 8,463, down 9.4%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, total existing-home sales transactions waned 2.2% from June to a seasonally adjusted annual rate of 4.07 million in July. Year-over-year, sales slumped 16.6% (down from 4.88 million in July 2022).
The statewide median sales price for single-family existing homes was $415,000, up 0.7% 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 $319,000, up 4.6% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Nationally, the median existing-home price for housing types in July was $406,700, an increase of 1.9% from July 2022 ($399,000). Prices rose in the Northeast, Midwest and South but were unchanged in the West.
Broward Real Estate Attracting Near List Price
The median percent of original list price received for single-family homes was 97.8% in July 2023, down from 100% last year. The median percent of original list price received for existing condominiums was 96.8%, down from 100% last year.
The median number of days between listing and contract dates for Broward single-family home sales was 20 days, up from 13 days last year. The median time to sale for single-family homes was 61 days, up from 51 days last year.
The median number of days between the listing date and contract date for condos was 26 days, up from 14 days. The median number of days to sale for condos was 66 days, down from 56 days.
Broward Cash Sales 46% More than National Figure
Cash sales represented 38% of Broward closed sales in July 2023, compared to 35.3% in July 2022. About 26% of U.S. home sales are made in cash, according to the latest NAR statistics.
Cash buyers are not deterred by rising rates. 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 49.1% of all Broward existing condo sales and 25.6% of single-family transactions.
To access July 2023 Broward 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 (MIAMI) was chartered by the National Association of Realtors in 1920 and is celebrating 103 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of six organizations: MIAMI RESIDENTIAL, MIAMI COMMERCIAL; BROWARD-MIAMI, a division of MIAMI Realtors; JTHS-MIAMI, a division of MIAMI Realtors in the Jupiter-Tequesta-Hobe Sound area; MIAMI YPN, our Young Professionals Network Council; and the award-winning MIAMI Global Council. MIAMI REALTORS represents nearly 60,000 total 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 256 international organizations worldwide. MIAMI’s official website is www.MiamiRealtors.com
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