MIAMI, May 21, 2021 /PRNewswire-PRWeb/ -- Martin
County real estate posted another robust month of total home sales
in April 2021 as pent-up demand and
record-low mortgage rates fueled transactions, according to the
MIAMI Association of Realtors
(MIAMI) and the Multiple Listing
Service (MLS) system.
Martin County total home sales
surged 68.3% year-over-year, from 268 to 451. Martin County single-family home transactions
rose 58.9%, from 180 to 286. Martin existing condo sales increased 87.5%,
from 88 to 165.
"Martin County home sales are
up even if you compare them to two years ago," JTHS-MIAMI President Bill
Mate said. "Homebuyers love Stuart and Martin
County's small-town atmosphere and proximity to the ocean.
Martin County home sales would
have been larger had there been more inventory, especially in
single-family homes."
Lack of inventory in certain price points is impacting sales,
particularly for single-family homes. Increased housing starts and
more sellers listing properties in 2021 should help alleviate the
lack of supply. More inventory is expected to come to the market
later this year as potential home sellers become more comfortable
listing and showing their homes. The falling number of homeowners
in mortgage forbearance will also bring about more inventory.
Martin County Luxury Sales Jump as Tax-Burdened High-Net-Worth
Buyers Relocate
Martin County single-family luxury
($1-million-and-up) transactions
jumped 360% year-over-year to 46 sales in April 2021. Martin
County existing condo luxury ($1-million-and-up) sales increased 100%
year-over-year to 10 transactions.
Luxury months of supply continues to trend downward for all
property types, month-over-month, and year-over-year.
Low interest rates; a robust S&P 500; the appeal of stable
assets in a volatile economy; homebuyers leaving tax-burdened
Northeastern states to purchase in Florida (no state income tax); and
work-from-home and remote-learning policies have all combined to
create a robust market for luxury single-family properties.
Martin single-family homes
priced between $400K to $600K surged 79.5% year-over-year to 70
transactions in April 2021.
Martin existing condo sales priced
between $400K to $600K increased 550% to 13 transactions.
Martin Homeowners' Home Equity Surges as Many Pay Lower Mortgage
Payments
With interest rates still at record lows, many South Florida homeowners have refinanced their
home loans. So not only are many homeowners paying lower mortgage
payments today; they are doing so while their wealth (home equity)
has significantly increased. Home equity can be tapped for
renovations, college loans and more.
Martin County single-family
home median prices increased 39.2% year-over-year in April 2021, increasing from $352,000 to $490,000. Existing condo median prices increased
16.5% year-over-year, from $176,000
to $205,000.
Rising median prices is a trend nationwide as record-low
mortgages rates and the increased availability of remote work and
education has accelerated the demand for housing. Low inventory
relative to high demand leads to prices rising.
Lower mortgage rates are making home purchases more affordable.
According to Freddie Mac, the average commitment rate for a
30-year, conventional, fixed-rate mortgage was 3.06% in April, down
from 3.08% in March. The average commitment rate across all of 2020
was 3.11%. NAR Chief Economist Lawrence
Yun expects the 30-year fixed-rate mortgage to remain below
3.5% in 2021.
Should mortgage rates resume their upward climb, home price
growth is likely to slow in response. Also, as more sellers list
properties in 2021, the increased inventory should ease the growth
of median prices.
Martin Dollar Volume Totals $352
Million, Showcasing Impact Housing Plays in Economy
While other industries struggled over the past year, housing lifted
the economy nationally and locally. For every two homes sold in the
U.S., one job is created. Dollar volume showcases the impact
housing plays in the local economy.
Single-family home dollar volume increased 219% year-over-year,
from $92.8 million to $296.1 million. Condo dollar volume increased
154.9% year-over-year, from $22.1
million to $56.3 million.
Martin County Distressed Sales Stay Low, Reflecting Healthy
Market
Only 0.4% of all closed residential sales in Martin County were distressed last month,
including REO (bank-owned properties) and short sales, compared to
1.1% in April 2020.
Total Martin distressed sales
decreased 33.3%, from 3 to 2.
Short sales and REOs accounted for 0% and 0.4% year-over-year,
respectively, of total Martin
County sales in April 2021.
Short sale transactions decreased 100% year-over-year while REOs
stayed even.
Nationally, distressed sales represented less than 1% of sales
in April 2021, down from 3% in
April 2020.
National, State Housing Demand Robust as More Inventory Expected
to Arrive
Nationally, total existing-home sales transactions completed
transactions that include single-family homes, townhomes,
condominiums and co-ops, slipped 2.7% from March to a
seasonally-adjusted annual rate of 5.85 million in April. Sales
overall jumped year-over-year, up 33.9% from a year ago (4.37
million in April 2020).
Statewide, Closed sales of single-family homes in April totaled
33,264, up 55.4% year-over-year, while existing condo-townhouse
sales totaled 17,330, up 130.9% over April
2020. Closed sales may occur from 30- to 90-plus days after
sales contracts are written.
Nationally, the median existing-home price for all housing types
in April was $341,600, up 19.1% from
April 2020 ($286,800), as every region recorded price
increases. This is a record high and marks
110 straight months of year-over-year gains.
The statewide median sales price for single-family existing
homes was $336,525, up 22.4% 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
$250,000, up 19.6% over the year-ago
figure. The median is the midpoint; half the homes sold for more,
half for less.
Seller's Market for Martin Real Estate
Inventory of single-family homes decreased 64.8% in April 2021 from 965 active listings last year to
340 last month. Condominium inventory decreased 51.2% to 204 from
418 listings during the same period in 2020.
Months supply of inventory for single-family homes decreased
70.8% to 1.4 months, which indicates a seller's market. Inventory
for existing condominiums decreased 58.7% to 1.9 months, which
indicates a seller's market. A balanced market between buyers and
sellers offers between six- and nine-months supply.
Months supply of inventory is down since July 2019 for single-family, reflecting strong
demand.
Total active listings at the end of April
2021 decreased 60.7% year-over-year, from 1,383 to 544.
New listings of Palm Beach
single-family homes increased 64.1% to 315 from 192. New listings
of condominiums increased 85.5%, from 83 to 154.
Nationally, total housing inventory at the end of April amounted
to 1.16 million units, up 10.5% from March's inventory and down
20.5% from one year ago (1.46 million). Unsold inventory sits at a
2.4-month supply at the current sales pace, slightly up from
March's 2.1-month supply and down from the 4.0-month supply
recorded in April 2020. These numbers
continue to represent near-record lows. NAR first began tracking
the single-family home supply in 1982.
Martin Real Estate Attracting Multiple Bids, Buyers Going
Over-List Price
The median percent of original list price received for
single-family homes was 98.9% in April
2021, up 3.9% from 95.2% last year. The median percent of
original list price received for existing condominiums was 97.5%,
up 3% from 94.7% last year.
The median number of days between listing and contract dates for
Martin single-family home sales
was 12 days, a 67.6% decrease from 37 days last year. The median
number of days between the listing date and closing date for condos
was 16 days, down 44.8% from 29 days.
The median time to sale for single-family homes was 56 days, a
33.3% decrease from 84 days last year. The median number of days to
sale for condos was 62 days, a 10.1% decrease from 69 days.
Martin Cash Sales Nearly Double National Figure
Cash sales represented 48.3% of Martin closed sales in April 2021, compared to 38.1% in April 2020. About 25 percent of U.S. home sales
are made in cash, according to the latest NAR statistics.
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 56.9% of all Martin existing condo sales and 43.4% of
single-family transactions.
To access April 2021 Martin County
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
was chartered by the National Association of Realtors in 1920 and
is celebrating 101 years of service to Realtors, the buying and
selling public, and the communities in South Florida. Comprised of six organizations,
the Residential Association, the Realtors Commercial Alliance, the
Broward-MIAMI Association of
Realtors, the Jupiter Tequesta Hobe Sound (JTHS-MIAMI) Council, the Young Professionals
Network (YPN) Council and the award-winning International Council,
it represents 52,000 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 223 international organizations worldwide. MIAMI's official website is
http://www.MiamiRealtors.com
###
Media Contact
Chris Umpierre, MIAMI Association of Realtors, 3054687047,
chris@miamire.com
Twitter
SOURCE MIAMI Association of
Realtors