MIAMI — Broward County total pending sales rose again for the third consecutive month, according to March 2023 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
“Fort Lauderdale and Broward County real estate sales are at pre-pandemic levels as properties continue to appreciate in our high-demand, low supply market,” BROWARD-MIAMI President Alfredo Pujol said. “Total inventory is coming off all-time lows and trending up. More supply is needed to meet the heavy demand domestically and internationally.”
Pending Sales and Showing Appointments Rise for Third Consecutive Month
Total pending sales rose 9.9% month-over-month, from 2,850 in February 2023 to 3,133 in March 2023. Pending sales are an indicator of future sales, but it takes up to 40 days for pending transactions to close and not all pending sales end in deals.
Showing appointments in the Southeast Florida MLS, which is owned by MIAMI REALTORS®, increased 14% month over month to 270,143 showings in March.
Home sales are sensitive to mortgage rate changes and homebuyers are taking advantage of any rate declines. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.27% as of April 13. That’s down from 6.28% from the previous week but up from 5% one year ago.
Broward total home sales decreased 24% year-over-year in March 2023, from a historic 3,703 transactions in March 2022 to 2,813 in March 2023.
In comparison to pre-pandemic March 2019, Broward March 2023 total sales are down 0.6%, from 2,830 to 2,813. Comparisons to pre-pandemic are better comps as 2021 and 2022 sales surged to record highs due to pandemic-fueled homebuying, historic low 2% mortgage rates and other factors.
Single-family home sales decreased 17.5% year-over-year, from 1,541 in March 2022 to 1,271 in March 2023 because of its comparison to a historic March 2022 and the current market has lower inventory in specific price points and higher rates. In comparison to pre-pandemic March 2019, Broward March 2023 single-family sales are down 6.2%.
Broward March 2023 condo sales also increased vs. March 2019, but are down in comparison to last year. Broward existing condo sales decreased 28.7% year-over-year, from a historic 2,162 in March 2022 to 1,542 in March 2023, due to lack of inventory and rising mortgage rates. In comparison to pre-pandemic March 2019, however, March 2023 condo sales increased 4.5%, from 1,475 to 1,542.
Broward Home Prices, Household Income Rise with Wealth Migration
Broward County single-family home median prices increased 3.7% year-over-year in March 2023, increasing from $545,000 to $565,000. Existing condo median prices increased 13%, from $238,500 to $269,500.
Home prices are determined by supply and demand. Lower supply and higher demand create higher prices. Inventory for Broward single-family homes (2.7 months) and condos (3.2 months) are low. Also, one of the supports for home prices is rents and rents are up.
While local median prices have increased so have local household incomes. Florida ranked No. 1 in the U.S. in largest net gain of adjusted gross income (AGI) due to domestic migration, gaining $23.7 billion, according to most recent IRS-SOI migration data. South Florida’s out-of-state homebuyers with a mortgage earn nearly $100,000 in median household income.
Global FinTech powerhouses such as Citadel, Blackstone, Microsoft, etc. have opened offices/headquarters in South Florida.
“What’s been mainly driving South Florida’s housing market are the job growth and sustained in-migration into the area, particularly from higher-tax states like New York, New Jersey, and California, which has been experiencing a layoff of tech workers,” MIAMI REALTORS® Chief Economist Gay Cororaton said.
Broward Active Listings Still Near Historical Lows; More Supply Needed
Total active listings at the end of March 2023 increased 79.1% year-over-year, from 4,112 to 7,365.
Inventory of single-family homes increased 85.8% year-over-year in March 2023 from 1,608 active listings last year to 2,988 last month. Condominium inventory increased 74.8% year-over-year to 4,377 from 2,504 listings during the same period in 2022.
New listings of Broward single-family homes decreased 21.2% to 1,459 from 1,852 year-over-year. New listings of condominiums decreased 14.7%, from 2,307 to 1,968 year-over-year.
Months’ supply of inventory for single-family homes increased 145.5% to 2.7 months year-over-year, which indicates a seller’s market. Inventory for existing condominiums increased 128.6% to 3.2 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 March was 980,000 units, up 1.0% from February and 5.4% from one year ago (930,000). Unsold inventory sits at a 2.6-month supply at the current sales pace, unchanged from February but up from 2.0 months in March 2022.
Broward Real Estate Posts $316.5 Million Local Economic Impact in March 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 $112,500, according to NAR. Broward sold 2,813 homes in March 2023 and had a local economic impact of $316.5 million.
Broward total dollar volume totaled $1.5 billion in March 2023. Single-family home dollar volume decreased 20.6% year-over-year to $978.2 million. Condo dollar volume decreased 38.5% year-over-year to $539.7 million.
Broward Distressed Sales Remain Low, Reflecting Healthy Market
Only 1.1% of all closed residential sales in Broward were distressed last month, including REO (bank-owned properties) and short sales, compared to 1.2% in March 2022.
Short sales and REOs accounted for 0.2% and 0.8% year-over-year, respectively, of total Broward sales in March 2023.
Broward’s percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented approximately 1% of sales in March, nearly identical to last month and one year ago.
Broward Median Price Appreciation Outperforming Nation, State
In Florida, closed sales of single-family homes statewide totaled 26,161 in March 2023, down 15% year-over-year, while existing condo-townhouse sales totaled 11,188, down 23.5%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, total existing-home sales transactions fell 2.4% from February to a seasonally adjusted annual rate of 4.44 million in March. Year-over-year, sales waned 22.0% (down from 5.69 million in March 2022).
The statewide median sales price for single-family existing homes was $405,000, up 2.1% 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 $320,000, up 3.9% 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 March was $375,700, a decline of 0.9% from March 2022 ($379,300). Prices climbed slightly in three regions but dropped in the West.
Broward Real Estate Attracting Near List Price
The median percent of original list price received for single-family homes was 96.1% in March 2023, down from 100% last year. The median percent of original list price received for existing condominiums was 96.2%, down from 99.3% last year.
The median number of days between listing and contract dates for Broward single-family home sales was 33 days, up from 10 days last year. The median time to sale for single-family homes was 73 days, up from 50 days last year.
The median number of days between the listing date and contract date for condos was 27 days, up from 16 days. The median number of days to sale for condos was 67 days, up from 59 days.
Broward Cash Sales 50.7% More than National Figure
Cash sales represented 39.9% of Broward closed sales in March 2023, compared to 48% in March 2022. About 27% 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 54.1% of all Broward existing condo sales and 22.8% of single-family transactions.
To access March 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 246 international organizations worldwide. MIAMI has been selected to host the prestigious FIABCI World Congress on June 5-9, 2023. MIAMI’s official website is www.MiamiRealtors.com