MIAMI — Martin County single-family $600K to $1M home sales surged year-over-year, according to May 2023 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Martin County single-family $600K to $1M home sales rose 42.1% year-over-year to 81 transactions. South Florida showing appointments, meanwhile, increased 1%, from 245,225 in May 2022 to 248,540 in May 2023, providing another example of the strong foot traffic and demand for local properties.
“Stuart and Martin County real estate provides an unparalleled quality of life for those seeing a small town with a big-city backing,” JTHS-MIAMI President Martha Gillespie-Beeman said.
Mortgage Rates Rise 1% vs. Last Year; Impacting Total Home Sales
Martin County total home sales decreased 8.2% year-over-year in May 2023, from 329 transactions in May 2022 to 302 in May 2023, because of elevated mortgage rates and lack of supply in certain price points.
Most of the homes purchased in May 2023 came to terms in April when mortgage rates averaged around 6.28%. Rates, in comparison, were at 5.27% on May 5, 2022.
Home sales are sensitive to mortgage rate changes. According to Freddie Mac, the 30-year fixed-rate mortgage 6.69% as of June 15. That’s down from 6.71% the previous week but up from 5.78% one year ago.
“With the Fed holding off on its rate increases briefly, I expect a busier summer market as interest rate-sensitive buyers take advantage of low mortgage rates– likely climbing down to the low 6% through September,” MIAMI REALTORS® Chief Economist Gay Cororaton said.
Martin single-family home sales decreased 4.2% year-over-year, from 216 in May 2022 to 207 in May 2023 because of its comparison to a historic month and the current market has lower inventory in specific price points and higher rates.
Martin existing condo sales decreased 15.9% year-over-year, from 113 in May 2022 to 95 in May 2023, due to lack of inventory and rising mortgage rates.
Martin County Home Prices, Household Income Rise with Wealth Migration
Martin County single-family home median prices increased 8.1% year-over-year in May 2023, increasing from $584,498 to $632,000. Existing condo median prices increased 5.2%, from $289,900 to $305,000.
In-migration boosted South Florida household income by $16 Billion in 2021, according to MIAMI REALTORS® analysis of the 2020-2021 migration data released by the Internal Revenue Service.
New households moving into Miami-Dade in 2021 had an average adjusted gross income of $229,300. New households moving into Broward County had an average adjusted gross income of $102,600. New households moving into Palm Beach County had an average adjusted gross income of $242,200.
About 45,430 people moved into Miami-Dade in 2021, up 15% from the level in 2020 (39,562) and up 20% from the level in 2019 (37,630). Top households that moved into Miami-Dade included Kings County, New York; Cook County, Illinois; Queens County, New York; and Harris County, Texas.
Home prices are determined by supply and demand. Lower supply and higher demand create higher prices. Inventory for Martin single-family homes (2.9 months) and condos (3.5 months) are low. Also, one of the supports for home prices is rents and rents are up.
Martin County Inventory, New Listings Near All-Time Lows
Total active listings at the end of May increased 58.9% year-over-year, from 479 to 761.
Inventory of single-family homes increased 35.8% year-over-year in May 2023 from 341 active listings last year to 463 last month. Condominium inventory increased 115.9% year-over-year to 298 from 138 listings during the same period in 2022.
New listings of Palm Beach single-family homes decreased 21.4% to 221 from 281 year-over-year. New listings of condominiums decreased 8.5%, from 129 to 118 year-over-year.
Months’ supply of inventory for single-family homes increased 70.6% to 2.9 months year-over-year, which indicates a seller’s market. Inventory for existing condominiums increased 169.2% to 3.5 months, which also indicates a seller’s market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Nationally, total housing inventory at the end of May was 1.08 million units, up 3.8% from April but down 6.1% from one year ago (1.15 million). Unsold inventory sits at a 3.0-month supply at the current sales pace, up from 2.9 months in April and 2.6 months in May 2022.
Martin Real Estate Posts $36.8 Million Local Economic Impact in May 2023
Every time a home is sold it impacts the economy: income generated from real estate industries (commissions, fees and moving expenses), expenditures related to home purchase (furniture and remodeling expenses), multiplier of housing related expenditures (income earned as a result of a home sale is re-circulated into the economy) and new construction (additional home sales induce added home production).
The total economic impact of a typical Florida home sale is $122,000, according to NAR. Martin sold 302 homes in May 2023 and had a local economic impact of $36.8 million.
Martin total dollar volume totaled $246 million in May 2023. Single-family home dollar volume decreased 1.19% year-over-year to $204 million. Condo dollar volume decreased 15.60% year-over-year to $40 million.
Martin Distressed Sales Remain Low, Reflecting Healthy Market
None of the closed residential sales in Palm Beach were distressed last month, including REO (bank-owned properties) and short sales, lower than 0.9% in May 2022.
Short sales and REOs accounted for 0% and 0% year-over-year, respectively, of total Martin sales in May 2023.
Martin’s percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented 2% of sales in May, virtually unchanged from last month and the prior year.
Martin Median Price Appreciation Outperforming Nation, State
In Florida, closed sales of single-family homes statewide totaled 26,396 in May 2023, down 8.5% year-over-year, while existing condo-townhouse sales totaled 11,392, down 14.1%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, total existing-home sales transactions rose 0.2% from April to a seasonally adjusted annual rate of 4.30 million in May. Year-over-year, sales dropped 20.4% (down from 5.40 million in May 2022).
The statewide median sales price for single-family existing homes was $419,900, down from 420,000 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 $325,000, up 0.9% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Nationally, the median existing-home price for housing types in May was $396,100, a decline of 3.1% from May 2022 ($408,600). Prices grew in the Northeast and Midwest but fell in the South and West.
Martin Real Estate Attracting Near List Price
The median percent of original list price received for single-family homes was 94.8% in May 2023, down from 100% last year. The median percent of original list price received for existing condominiums was 94.9%, down from 100% last year.
The median number of days between listing and contract dates for Martin single-family home sales was 31 days, up from 11 days last year. The median time to sale for single-family homes was 75 days, up from 51 days last year.
The median number of days between the listing date and contract date for condos was 26 days, up from 9 days. The median number of days to sale for condos was 67 days, down from 46 days.
Martin Cash Sales More than Double the National Figure
Cash sales represented 54.9% of Martin closed sales in May 2023, compared to 53.5% in May 2022. About 25% of U.S. home sales are made in cash, according to the latest NAR statistics.
Cash buyers are not deterred by rising rates. 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.
In May 2023, cash sales accounted for 65.3% of all Martin existing condo sales and 50.2% of single-family transactions.
To access May 2023 Martin 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 (MIAMI) was chartered by the National Association of Realtors in 1920 and is celebrating 103 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of six organizations: MIAMI RESIDENTIAL, MIAMI COMMERCIAL; BROWARD-MIAMI, a division of MIAMI Realtors; JTHS-MIAMI, a division of MIAMI Realtors in the Jupiter-Tequesta-Hobe Sound area; MIAMI YPN, our Young Professionals Network Council; and the award-winning MIAMI Global Council. MIAMI REALTORS represents nearly 60,000 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 256 international organizations worldwide. MIAMI’s official website is www.MiamiRealtors.com