Single-family saves the day. Q3 resi sales up in South Florida

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October 16, 2020
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As reported in The Real Deal.

As out of towners continued flocking to South Florida, residential sales surged in the third quarter.

Single-family home sales did especially well, rising in the double digits, year-over-year, across the tri-county region.

“In most of the markets we’re covering … sales have generally risen from 50 percent to 100 percent as a release of the pent-up demand,” said Jonathan Miller of Miller Samuel Inc., who authored the reports.

Miller said the pandemic accelerated the trend of buyers from the Northeast moving to markets such as South Florida, especially as a result of the 2017 federal tax overhaul, known as the SALT tax.

“For those on the fence, [Covid] was one more reason to make the move,” he said.

Here’s a look at some of the submarkets included in the reports:

Miami mainland

On the coastal Miami mainland, which includes Aventura, Brickell, Coconut Grove, Palmetto Bay, Pinecrest and South Miami, residential sales rose 6 percent, year-over-year, to 4,286 closings. The median sale price rose 13.5 percent to $374,450. Year to date, closings are still down 11 percent, totaling 10,301.

Single-family outperformed condo sales, rising nearly 11 percent in the third quarter, for a total of 2,298 closings. The median sale price was $465,000, up 16.5 percent. The inventory of homes dwindled, tumbling by more than 38 percent to 2,163 listings and only 2.8 months of supply.

Condo sales increased slightly, rising 0.9 percent, year-over-year, to 1,988 closings. The median sale price rose 8.4 percent to $272,000. The only submarket where condo sales fell was downtown Miami, which had 11.2 months of supply.

Miami Beach and the barrier islands

In Miami Beach and the barrier islands, including Bal Harbour, Bay Harbor Islands, Fisher Island, Golden Beach, Indian Creek, Key Biscayne, North Bay Village, Sunny Isles Beach and Surfside, residential sales grew by 9.9 percent to 934 closings in the third quarter.

The median price for a residential property was $516,500, up 26 percent compared to the same period last year. Year to date, sales were down nearly 15 percent to 2,204, after an abysmal second quarter.

Again, single-family home sales surged in the third quarter, rising 71 percent to 171 closings. The median sales price was $1.78 million, up more than 27 percent. Inventory totaled nearly 11 months, an annual 49 percent decrease.

Condo sales budged upward, increasing by 1.7 percent to 763 closings. The median price grew by 7.4 percent to $375,000, with 22.6 months of supply.

Fort Lauderdale

Condo sales rose nearly 12 percent in Fort Lauderdale, to 547 closings. Single-family home sales increased 18.2 percent, to nearly 600 closings. Fort Lauderdale had 3.8 months of supply of houses, down nearly 30 percent, year-over-year.

The median sale price for condos was $335,000, up 6.3 percent. The median price of houses was $500,000, a 37 percent increase compared to the third quarter of last year.

Palm Beach

Supply plummeted in Palm Beach, where only 4.7 months of single-family housing supply remains (a 79 percent drop), and 10 months of condo supply (an 18 percent decline).

Sales of single-family homes grew by 200 percent in the third quarter, year-over-year, to 54 closings. Condo sales increased 33 percent to 81 closings. The median sale price for houses was $5.9 million, a 0.3 percent decline, and the median price of condos was $875,000, up 64 percent.

West Palm Beach

In West Palm Beach, condo sales increased more than 7 percent to 710 closings, and 613 single-family home sales closed, marking a nearly 23 percent jump.

The median sale price of condos rose 12.5 percent to $157,500; and the median sale price of single-family homes grew by 16 percent, to $348,000.