South Florida Housing September 2020 Sales Surge over September 2019

September 2020 Homes Sales Surge over September 2019 Statistics

in South Florida and Florida Overall

 

Florida Realtors®’ data: Sales, median prices, new pending sales and new listings rose year-over-year. Single-family sales up 22%; condo sales up 25.3% – and in a milestone, 2020 single-family sales over last 9 months beat the same timeframe in 2019, says Chief Economist O’Connor.

 

In September 2020, Florida’s housing market reported more closed sales, more new pending sales, rising median prices and more new listings compared to a year ago despite the ongoing pandemic, according to Florida Realtors® latest housing data. Single-family existing home sales rose 22% compared to September 2019.

“Florida’s housing sector continues to be a bright spot for the state’s economy amid the ongoing pandemic,” says 2020 Florida Realtors President Barry Grooms, a Realtor and co-owner of Florida Suncoast Real Estate Inc. in Bradenton. “September’s market data shows that there are motivated buyers, but the lack of for-sale inventory is affecting their search for their Florida dream home. Statewide inventory for single-family existing homes last month was at the record low of a 2.2-months’ supply. That imbalance of supply and demand could impact the market in the long-term as housing shortages continue to put pressure on prices and affordability.”

Watch the Video of Florida Realtor’s Chief Economist Dr. Brad O’Connor summarize Florida overall statistics:  (See South Florida Sales below)

 

 

Last month’s closed sales of single-family homes statewide rose 22% year-over-year, totaling 28,675, while existing condo-townhouse sales increased 25.3% over September 2019 and totaled 11,290. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

The statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year in September for 105 consecutive months. The statewide median sales price for single-family existing homes was $300,000, up 13.2% 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 $217,500, up 12.7% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

According to Florida Realtors Chief Economist Dr. Brad O’Connor, the September data reported a significant milestone for 2020: The year-to-date total of closed existing single-family home sales now exceeds the total from the first nine months of 2019.

“Given all that’s occurred this year, it’s hard to believe we’re already in positive territory again, but here we are,” he says. “And all indications are that we will continue to see strong sales this fall as mortgage interest rates will almost certainly remain at or near record lows. New pending sales of single-family homes were very strong in September, rising by 31.4% year-over-year, while new pending sales of condos and townhouses were up a dramatic 43%.”

Builder Confidence and Inventory

The national inventory shortage is the biggest constraint to the housing market right now, O’Connor says.

“Builder confidence, as measured by the National Association of Home Builders/Wells Fargo Housing Market Index, hit an all-time high in September,” he says. “However, the construction industry continues to face challenges such as low labor productivity and skilled labor shortages, high prices on materials, land constraints and the usual mix of regulatory impediments that can make it difficult to produce the types of homes that are in greatest demand – particularly single-family starter homes. In the short- to medium-term, we’re really going to have to rely on new listings of existing homes for more inventory – but even then, since sellers are usually buyers, too, this can only help so much.”

Statewide, new listings rose year-over-year in both property type categories in September, up by 12.1% for single-family existing homes and 21.1% for condo and townhouse units.

On the supply side of the market, inventory (active listings) continues to be tight, especially for single-family existing homes, which were at a 2.2-months’ supply in September. Condo-townhouse inventory was at a 5.1-months’ supply.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 2.89% in September 2020, down from the 3.61% averaged during the same month a year earlier.

 

South Florida Sales Market Trends for September 2020

 

* Palm Beach County, St Lucie and Martin Counties, and Broward and Miami-Dade Counties

 

 

September was another busy month for the South Florida real estate market with closed sales skyrocketing with double-digit increases.  The COVID-19 pandemic hasn’t deterred buyers from purchasing homes.

Closed Sales are one of the simplest—yet most important—indicators for the residential real estate market. Closed Sales (and many other market metrics) are affected by seasonal cycles, so actual trends are more accurately represented by year-over-year changes (i.e. comparing a month’s sales to the amount of sales in the same month in the previous year), rather than changes from one month to the next.

Low levels of inventory and historically low interest rates have played a huge role in the continued growth of South Florida area prices.

 

Palm Beach County  – Median sales price hits 400,000 for Palm Beach County

• 1,744 closed sales in Palm Beach County, a massive 28.6 percent increase year-over-year.
• Median sale price increased 12.7 percent, hitting $400,000. For Listings DOM,  the Median time on market is 27 days, which makes it a good time for you to capitalize on the high demand.
• Months of inventory is 2.9 for single family and 5.1 for townhomes / condos.

St Lucie County  – Demand drives double – digit increases.

• 601 closed sales in St. Lucie County, a massive 20 percent increase year-over-year.
• Median sale price increased 8.6 percent, hitting $258,680.  Median time on market is 18 days
• Months of Inventory is 1.9 for single family and 4.0 for townhomes/condos.

Martin County – Closed sales Skyrocket in Martin County

• 252 closed sales in Martin County, a massive 27.9 percent increase year-over-year.
• Median sale price increased 4.9 percent, reaching $405,444.   Median time on market is 25 days.
• Months of Inventory is 2.9 for single family and 3.3 for townhomes/condos.

Broward County – Broward Home Sales and Prices Up, Days on market down. 

• 1,535 closed sales in Broward County, a massive 24.9 percent increase year-over-year.
• Median sale price increased 15.6 percent, hitting $425,000.  Median time on market is 21 days.
• Months of inventory is 2.6 for single family and 6.5 for townhomes/condos.

 

National Market Update – Housing Market’s V-shaped Recovery

Existing Home Sales shot up 9.4% in September with gains in all major regions for both single-family homes and condos/coops. The 6.54 million annual rate puts them 13.5% above their pre-pandemic level, forming a V-shaped recovery.

Single-family Housing Starts bounded ahead in September for the fifth month in a row, and are now 7.2% above their pre-pandemic high, also indicating a full V-shaped recovery. Permits for future work are up five months straight.

Increased builder activity should help relieve the tight supply of existing homes, and builders are super optimistic. The National Association of Home Builders Housing Market Index put builder confidence at the highest read ever recorded!

 

This Week’s Forecast

NEW AND PENDING HOME SALES UP, ECONOMY GROWS AGAIN… More evidence of the housing market’s V-shaped recovery is forecast, with increases for both New Home Sales and the Pending Home Sales index of signed contracts on existing homes. The GDP-Advance read is expected to post the best ever annual gain in Q3 following the worst ever annual drop in Q2. That would signal the start of a V-shaped recovery for the entire economy.