Boom in Sales of Single-Family Homes of $1 Million or More in Broward
Discover the vibrant luxury real estate market in Broward, Miami, with a 14.3% increase in sales of single-family homes of $1 million or more. Explore current trends, from the increase in property showing appointments to new apartment construction in the region.
MIAMI — Sales of single-family homes in Broward County priced at $1 million or more experienced a double-digit increase compared to the previous year, according to August 2023 statistics released by the Miami Association of Realtors (MIAMI) and the Multiple Listing Service (MLS).
Sales of single-family homes in Broward priced at $1 million or more increased by 14.3% year-over-year in August 2023, rising from 168 to 192 transactions.
"The luxury real estate market in Fort Lauderdale offers a unique lifestyle that continues to attract international demand from buyers such as world soccer phenomenon Lionel Messi," said Alfredo Pujol, president of Broward-MIAMI.
Increase in Property Showings in South Florida for the Fourth Consecutive Month
Broward remains a high-demand, low-supply market, with an increase in property showings and a decrease in new listings.
Property showings in South Florida increased for the fourth consecutive month, with a 2% year-over-year rise, from 215,662 in August 2022 to 219,484 in August 2023.
Total home sales in Broward decreased by 10.7% year-over-year in August 2023, from 2,700 transactions in August 2022 to 2,410 in August 2023, due to elevated mortgage rates and lack of supply in certain price ranges.
Sales of single-family homes in Broward decreased by 2% year-over-year, from 1,202 in August 2022 to 1,178 in August 2023. Sales of existing condominiums in Broward decreased by 17.8% year-over-year, from 1,498 in August 2022 to 1,232 in August 2023.
Home sales are influenced by changes in mortgage rates. According to Freddie Mac, the 30-year fixed mortgage rate averaged 7.18% as of September 14. This is an increase from 7.12% the previous week and 6.02% a year ago.
"Buyers seem to realize that home prices are not going to decrease and are more mentally prepared to make an offer on a home that fits their financial situation and needs," said MIAMI REALTORS® Chief Economist Gay Cororaton.
The Miami Region Leads in New Apartments Under Construction
With existing inventory near historic lows, the Miami region would have more total sales if it had more supply, and the market could start to realize this as soon as next year.
According to LoopNet, Miami leads the nation in new apartments under construction as a percentage of total inventory. Most of the new units are expected to open in 2024, primarily located in downtown Miami, where many fintech companies newly arrived to the market have established themselves. The new apartments will be in new 4- and 5-star buildings.
The historical monthly average for existing inventory in Broward (excluding new construction) is 15,411, and the current inventory is 7,528. Total inventory has decreased by 42.4% since before the pandemic (August 2019), from 13,080 to 7,528.
The total number of active listings at the end of August increased by 6.4% year-over-year, from 7,035 to 7,528.
Single-family home inventory decreased by 16.3% year-over-year in August 2023, from 3,458 active listings last year to 2,893 last month. Condominium inventory increased by 29.6% year-over-year, from 4,635 to 3,577 listings during the same period in 2022.
New listings of single-family homes in Broward decreased by 9.8% to 1,498, compared to 1,661 year-over-year. New condominium listings decreased by 1.3%, from 1,931 to 1,906 year-over-year.
The inventory supply for single-family homes is 2.8 months, indicating a seller's market. The inventory of existing condominiums is 3.8 months, also indicating a seller's market. A balanced market between buyers and sellers offers between six and nine months of supply.
Nationally, the total housing inventory recorded at the end of August was 1.1 million units, a 0.9% decrease from July and a 14.1% decrease from a year ago (1.28 million). The unsold inventory is at a 3.3-month supply at the current sales pace, identical to July and higher than the 3.2 months in August 2022.
Increase in Home Prices and Household Incomes in Broward with Wealth Migration
The median prices of single-family homes in Broward County increased by 6.7% year-over-year in August 2023, rising from $562,500 to $600,000. The median prices of existing condominiums increased by 3.8% year-over-year, from $265,000 to $275,000.
Historically, a market with less than 6 months of supply will have appreciated prices. Single-family homes and existing condominiums in Broward have 2.8 and 3.8 months, respectively.
Local home prices have increased with the wealth migration to South Florida.