Single-family homes are hot. That means few options — and a median price over $400,000
South Florida’s residential sales are on an upswing. For the first time since the pandemic swept the region, year-over-year home sales surpassed 2019 closings.
Total home sales increased over 6% from August 2019 to August 2020 in Miami-Dade and Broward, according to the Miami Association of Realtors August reports. The prior sales reports — April, May, June, and July — all suffered a year-over-year decrease in total sales. The report measures sales of existing homes.
Sales of single-family homes in both counties skyrocketed while condo sales slipped as buyers continue to seek greater space and lower density. With tight inventory, the median price for a single-family home jumped over the $400,000 mark in both counties.
“Pent-up demand, historically low mortgage rates and the robust fundamentals of the South Florida housing market is leading to increased buying activity,” wrote Jorge Guerra Jr., chairperson for the Miami Association of Realtors, in the report. “South Florida real estate activity is now stronger than it was before the impact of the pandemic. We expect this trend to continue as a result of strong demand for housing and very low interest rates.”
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Miami-Dade
The total number of home sales grew by 6.4%, from 2,374 in August 2019 to 2,527 in August 2020. The number of single-family transactions rose by 16.6% year-over-year; condo sales decreased by 3.3%.
Inventory decreased by 34.8% for single-family homes — from 6,385 in August 2019 to 4,164 in August 2020 — and by 6.4% for condos — from 15,202 to 14,226. The market has four months of inventory left for single-family homes, proving favorable to sellers, and 14 months for condos, potentially benefiting buyers. A balanced market consists of six-to-nine-months of inventory.
The median single-family home price jumped 12.4%, from $370,000 to $416,000. The median condo price climbed from $241,635 to $265,000.
Single-family homes closed at 96% of the listing price, up from 95.8% in August 2019. Condos sold at 94.7% of the listing price, a year-over-year dip from 93.8%.
Cash buyers comprised about 27% of total sales in August 2020, down from approximately 32% in August 2019. Still, that exceeds the national average of 18%.
Broward
The total number of residential transactions climbed by 6.7%, from 2,895 in August 2019 to 3,089 in August 2020. Single-family home sales rose by 16.4%, but condo sales dipped by 2.9%.
Inventory sank by 35.8% for single-family homes — from 5,436 in August 2019 to 3,492 in August 2020 — and increased by 3.1% for condos — from 7,563 to 7,799. The market has only 2.8 months of supply for single-family homes and 6.5 months for condos, conditions that favor sellers.
The median single-family home price grew by 12.5%, from $369,750 to $416,000 in August 2020. The median condo price rose by 13.2%, from $176,540 to $199,900.
Single-family homes closed at 97.1% of the listing price, up from 96% in August 2019. Condos sold at 95% of the listing price, a slight uptick from 94.9% last year.
Cash buyers comprised about 27.2% of total sales in August 2020, a decrease from 31.9% last year. Still, that exceeds the national average of 18%.
