New signed resi contracts rose in August in South Florida

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September 6, 2020
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As reported in The Real Deal.

Newly signed contracts for both single-family homes and condos rose on an annual basis in August, according to a newly released report from Douglas Elliman.

Fewer owners of condos decided to list their units in South Florida last month, while single-family home listings rose, the report shows. 

Not all signed contracts will close.

Coronavirus’s toll on the market was clear in the second quarter’s closed home sales, with double-digit declines in Miami-Dade, Broward and Palm Beach counties, according to a recent report from the Miami Association of Realtors.

New signed contract activity for single-family homes grew year over year in August but showed signs of peaking, according to the report. Single-family home contracts grew 19 percent to 1,479 contracts.

Most of the year-over-year gains came in the mid- to high-end of the market, with contracts for single-family homes priced between $600,000 and $799,000 increasing by 92 percent annually to 161 contracts.

New listings of single-family homes in August rose 12 percent year over year to 1,055 listings. Most of the growth was at the high-end of the market with an 85 percent annual jump of $1 million-plus listings, up to 273 listings. The lower end of the market saw notable decreases, with listings under $200,000 falling by 73 percent year over year to just six listings.

New signed condo contracts stayed relatively flat year over year, rising 2 percent to 1,337 contracts. Though the lower and mid-market experienced a bump in activity, there were fewer condos priced over $800,000 that went into contract in August.

New listings of condos were almost cut in half in August, down to 2,010 listings, compared to the previous year.

Palm Beach
New signed contracts for single-family homes rose 84 percent year over year to 547 contracts.

New listings of single-family homes rose 7 percent year over year to 939. The higher end saw a bump in new listings, while fewer houses hit the market in the lower end.

Condo contracts rose 26 percent year over year to 345.

New listings of condos stayed relatively flat, rising 1.3 percent annually to 1,139 listings, in part due to no listings of condos priced at more than $1 million in August. The county saw 55 new $1 million-plus listings hit the market in August 2019.

Big ticket sales in Palm Beach County in August include two members of the billionaire New York real estate Elghanayan family selling their home in Palm Beach for almost $9 million.

New signed contracts of single-family homes in Broward more than doubled year over year to 787 contracts. Most of the growth was at the higher end, with 65 new contracts of houses asking more than $1 million.

Newly added inventory declined by 10 percent annually to 1,010 listings. Most of the decrease was at the lower end, with the number of new listings under $200,000 dropping by 62 percent year over year to 13 listings.

New signed contracts of condos in Broward County tripled year over year to 872 contracts in August. Again, most of the growth was in the higher end, with contracts of units priced at more than $800,000 increasing from just one in August 2019 to 15 in August 2020.

There were 1,276 condo listings added in August, a year-over-year drop of 16 percent. Million-dollar-plus listings doubled year over year to 71.