MIAMI — Broward County single-family home mid-market sales continue trending upward, according to May 2023 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Broward single-family $400,000 to $600,000 home sales stayed even year-over-year in May 2023 at 471 transactions. South Florida showing appointments, meanwhile, increased 1%, from 245,225 in May 2022 to 248,540 in May 2023, providing another example of the strong foot traffic and demand for local properties.
“Fort Lauderdale real estate and Broward County real estate remains in a high-demand, low-supply environment as we begin to see the market normalize,” BROWARD-MIAMI President Alfredo Pujol said.
Mortgage Rates Rise 1% vs. Last Year; Impacting Total Home Sales
Broward total home sales decreased 13.9% year-over-year in May 2023, from a historic 3,222 transactions in May 2022 to 2,772 in May 2023, because of elevated mortgage rates and lack of supply in certain price points.
Most of the homes purchased in May 2023 came to terms in April when mortgage rates averaged around 6.28%. Rates, in comparison, were at 5.27% on May 5, 2022.
Home sales are sensitive to mortgage rate changes. According to Freddie Mac, the 30-year fixed-rate mortgage 6.69% as of June 15. That’s down from 6.71% the previous week but up from 5.78% one year ago.
“With the Fed holding off on its rate increases briefly, I expect a busier summer market as interest rate-sensitive buyers take advantage of low mortgage rates– likely climbing down to the low 6% through September,” MIAMI REALTORS® Chief Economist Gay Cororaton said.
Broward single-family home sales decreased 12.5% year-over-year, from 1,431 in May 2022 to 1,252 in May 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 15.1% year-over-year, from a historic 1,791 in May 2022 to 1,520 in May 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 declined negligibly 0.2% year-over-year in May 2023, increasing from $586,000 to $585,000. Existing condo median prices increased 6.5%, from $253,500 to $270,000.
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.
About 45,430 people moved into Miami-Dade in 2021, up 15% from the level in 2020 (39,562) and up 20% from the level in 2019 (37,630). Top households that moved into Miami-Dade included Kings County, New York; Cook County, Illinois; Queens County, New York; and Harris County, Texas.
Home prices are determined by supply and demand. Lower supply and higher demand create higher prices. Inventory for Broward single-family homes (2.6 months) and condos (3.4 months) are low. Also, one of the supports for home prices is rents and rents are up.
Broward Inventory, New Listings Near All-Time Lows
While inventory is rising, Broward inventory is still near all-time lows. The monthly historical average for Broward inventory is 15,411 and current inventory is at 7,126. Total inventory is down 49.9% from pre-pandemic (May 2019), from 14,223 to 7,126.
Total active listings at the end of May increased 48.1% year-over-year, from 4,810 to 7,126.
Inventory of single-family homes increased 23.1% year-over-year in May 2023 from 2,215 active listings last year to 2,727 last month. Condominium inventory increased 69.5% year-over-year to 4,399 from 2,595 listings during the same period in 2022.
New listings of Broward single-family homes decreased 23.6% to 1,545 from 2,023 year-over-year. New listings of condominiums decreased 12%, from 2,105 to 1,853 year-over-year.
Months’ supply of inventory for single-family homes increased 73.3% to 2.6 months year-over-year, which indicates a seller’s market. Inventory for existing condominiums increased 142.9% to 3.4 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 May was 1.08 million units, up 3.8% from April but down 6.1% from one year ago (1.15 million). Unsold inventory sits at a 3.0-month supply at the current sales pace, up from 2.9 months in April and 2.6 months in May 2022.
Broward Real Estate Posts $338 Million Local Economic Impact in May 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 2,772 homes in May 2023 and had a local economic impact of $338 million.
Broward total dollar volume totaled $1.5 billion in May 2023. Single-family home dollar volume decreased 17.71% year-over-year to $976 million. Condo dollar volume decreased 17.96% year-over-year to $558 million.
Broward Distressed Sales Remain Low, Reflecting Healthy Market
Only 1% of all closed residential sales in Broward were distressed last month, including REO (bank-owned properties) and short sales, lower than 0.9% in May 2022.
Short sales and REOs accounted for 0.3% and 0.8% year-over-year, respectively, of total Broward sales in May 2023.
Broward’s percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented 2% of sales in May, 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 26,396 in May 2023, down 8.5% year-over-year, while existing condo-townhouse sales totaled 11,392, down 14.1%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, total existing-home sales transactions rose 0.2% from April to a seasonally adjusted annual rate of 4.30 million in May. Year-over-year, sales dropped 20.4% (down from 5.40 million in May 2022).
The statewide median sales price for single-family existing homes was $419,900, down from 420,000 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 $325,000, up 0.9% 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 May was $396,100, a decline of 3.1% from May 2022 ($408,600). Prices grew in the Northeast and Midwest but fell in the South and West.
Broward Real Estate Attracting Near List Price
The median percent of original list price received for single-family homes was 97.3% in May 2023, down from 100% last year. The median percent of original list price received for existing condominiums was 96.4%, down from 100% last year.
The median number of days between listing and contract dates for Broward single-family home sales was 25 days, up from 11 days last year. The median time to sale for single-family homes was 65 days, up from 50 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 67 days, down from 56 days.
Broward Cash Sales 62.4% More than National Figure
Cash sales represented 40.6% of Broward closed sales in May 2023, compared to 45.9% in May 2022. About 25% 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.
In May 2023, cash sales accounted for 54.9% of all Broward existing condo sales and 23.2% of single-family transactions.
To access May 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