Market: State of the residential real estate market in Southeast Florida, homes over $1 million still in severe inventory shortage.
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Homes priced over $1 million are driving sales amid a "severe shortage" of inventory.
The total number of residential sales in South Florida increased again in April, with the condominium market particularly strong, according to the latest data from Florida Realtors.
Sales of "single-family homes" increased 76.1 percent to 5,355 in the tri-county area compared to the same month last year. The median sales price increased 28 percent to $480,000.
In the South Florida condominium and townhouse market, sales jumped 159.3 percent to 6,617, while the median sales price rose 22.5 percent to $262,000.
Sales and prices were stronger in Southeast Florida than in the rest of the state
Statewide, sales of single-family homes increased by 55.4 percent, while the median sales price increased by 22.4 percent to $336,525. Florida-wide, sales of condos and townhouses increased 130.9 percent, while the median sales price increased 19.6 percent to $250,000.
Florida real estate agents noted that the April 2020 comparison month is when closings began during the Covid-19 pandemic. However, there is still a "severe shortage" of homes for sale compared to historical levels. This is the primary reason for the price increase.
Brad O'Connor, chief economist for Florida Realtors, expects a gradual slowdown in the pace of sales due to the potential rise in interest rates.
Miami-Dade County
In Miami-Dade County, the number of "single-family home" sales jumped 83.1 percent to 1,584, while the median sales price climbed 34.8 percent to $515,000. Sales of homes priced over $1 million grew explosively, with a 541 percent increase. Active listings dropped 55%, so the supply of inventory at the current sales pace fell to 2.2 months. This is a seller's market with a shortage of inventory for buyers.
Sales of condos and townhouses in Miami-Dade increased 234.2 percent to 2,376, while the median sales price increased 22.6 percent to $325,000. Nearly 47 percent of the transactions were for cash. Sales of units priced at $1 million or more increased 541 percent as the luxury market heated up. Active listings dropped 33%, so the inventory supply at the current sales pace is 7.1 months. It's a fairly balanced market between buyers and sellers. A year ago it was a buyer's market with a glut of inventory, but that is no longer the case.
Broward County
Sales of "single-family homes" in Broward County jumped 80.9 percent to 1,782, while the median price rose 21.5 percent to $464,000, according to the Broward, Palm Beaches & St. Lucie Realtors. Transactions for homes priced at $1 million or more jumped 331 percent. Active listings fell 58 percent, so the supply of inventory at the current sales pace fell to just 1.4 months. This is a seller's market.
For Broward condos/townhouses, sales increased 126.9 percent to 2,224, while the median sales price increased 19.9 percent to $220,000. Just over half of these sales were for cash. Sales of units over $1 million jumped 473 percent. Active listings dropped 38%, so the supply of inventory at the current sales pace has dropped to 3.4 months. This is a seller's market.
"Broward sellers are averaging 99.5 percent of the asking price," said Karen Johnson, president of the Broward, Palm Beaches & St. Lucie Realtor Association. "The sales to listing ratio is something to watch as it continues to approach the 100 percent mark."
Palm Beach County
In Palm Beach County, sales of "single-family homes" rose 67 percent to 1,989, while the median sales price rose 27.7 percent to $466,000, according to Broward, Palm Beaches & St. Lucie Realtors. For homes priced over $1 million, sales jumped 265 percent. Active listings are down 53%, so the supply of inventory at the current sales pace has fallen to 1.8 months. This is a seller's market.
Sales of condos and townhouses in Palm Beach County increased 134.3 percent to 2,017, while the median sales price increased 23.2 percent to $240,250. Approximately 60 percent of these sales were for cash. Sales of units priced at $1 million or more jumped 265 percent. Active listings fell 43%, so the supply of inventory at the current sales pace fell to 2.8 months. This is a seller's market.
Source: South Florida Business Journal.
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