TRENDS December 2021 Monthly Report - Today's Real Estate Market Along Florida's East Coast

Page 1

MARKET REPORT DECEMBER 2021

TRENDS

TODAY’S REAL ESTATE ALONG FLORIDA’S EAST COAST


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LOCAL EXPERTISE WITH A GLOBAL PERSPECTIVE I am thrilled to share our latest market report that ONE Sotheby’s International Realty has developed in partnership with Rosen Consulting Group, the leading independent real estate economics consulting firm with offices in Berkeley and New York. In our efforts to provide high-quality and accessible information to guide our clients with superior insights and a strategic perspective on real estate, we continue an unmatched collaboration with a trusted advisor to top public and private real estate organizations. Keeping a close eye on the market allows us better to advise our clients with timely and relevant knowledge. Rosen Consulting Group has succeeded at providing its analytical approach and global viewpoint, aligned with the local expertise of our real estate professionals. The market continues to evolve, and heads keep turning to Florida’s East Coast. Miami Art Week brought excitement to all of us as we saw real estate agents, entrepreneurs and investors coming together with a shared passion for art and culture. While Florida catches outstanding attention from all around the world, opportunities for immediate relocation, a lifestyle change, or long-term investment continue to surface and our global real estate advisors remain connected for our clients. With gratitude,

ABOUT TRENDS: Daniel de la Vega President ONE Sotheby’s International Realty

ONE Sotheby’s International Realty presents the only market report focused on Florida’s East Coast. From Miami to Cocoa Beach, data is presented from a macro perspective down to city level. Data is sourced from local Multiple Listing Service (MLS) organizations. Written analysis created in partnership with the Rosen Consulting Group, a nationally recognized consulting firm and trusted advisor to top public and private real estate operators and capital providers.


THE REAL ESTATE MARKET ALONG FLORIDA’S EAST COAST

D EC 202 1

The Florida East Coast housing market headed towards

The lack of homes remained the primary constraint

a strong finish to the year, with home prices continuing to

on the market, limiting sales activity despite the

increase. In part driving the price gains, housing demand

elevated buyer demand. In November, nearly 9,800

was bolstered by continued job creation and wage

homes and condos sold in the region, on par with the

growth. Migration into the region continued to rebound,

previous month. Notably, sales volume for both single

with younger households attracted by job opportunities

family homes and condos was stable from October.

and low unemployment rate as well as some households

This contrasts with recent months where the greater

relocating for affordability reasons. Strengthening

availability of condo inventory in many counties helped

economic conditions and still-low mortgage rates should

allow sales to accelerate. As excess condo supply is

expand housing demand despite strong price gains that

absorbed, sales activity should more closely align with

will curtail affordability.

the single family sector.

AVERAGE SALES PRICE BY COUNTY FLORIDA’S EAST COAST

NOV 2020

NOV 2021

SINGLE-FAMILY HOMES

NOV 2020

NOV 2021

CONDOMINIUMS


INVENTORY DOWN 50% SINCE JANUARY

BUYERS WILLING TO COMPROMISE

The total number of for-sale listings decreased by

In the last few months, the average days on market

nearly 7% in the last month, falling below the 20,000

increased slightly. While an increase often marks a slowing

home threshold for the first time in this cycle. Since

housing market, in this case the lack of supply is driving

the beginning of the year, inventory has fallen by more

more buyers to consider homes that have sat on the

than 50%, underscoring the degree to which buyer

market for longer than expected, which is leading to the

demand has outweighed new listings coming on the

increase in the average days on market. While newly listed

market. With such a large imbalance of demand and

homes are often put into escrow quickly, potential buyers

supply, it is not surprising that prices reached record

that find themselves outbid are increasingly turning to

levels in many neighborhoods.

available homes that, for various reasons, have not yet

With dwindling inventory and strong sales activity,

sold. This highlights that some buyers are increasingly

the months of supply continued to fall. At the current

compromising on location, amenities and other features

sales pace, condo inventory would be absorbed within

in order to gain entry to the ownership market. Roughly

roughly 2.5 months. In the more supply constrained

26% of sales closed at greater than the list price, slightly

single family home sector, inventory would be

down from the peak in July and August. Competition was

exhausted in less than 1.5 months if no additional

elevated in the single family segment relative to condos,

homes came on the market.

with approximately 33% of single family homes sold above asking price while 19% of condos sold for more than the list price. While the share of condos closing greater than the asking price was much lower than single family homes, since 2020 that share has tripled, highlighting the rapid recovery of the condo market in many neighborhoods.

MEDIAN SALES PRICE FLORIDA’S EAST COAST

$470,000 2%


THE REAL ESTATE MARKET ALONG FLORIDA’S EAST COAST

D EC 202 1

MEDIAN PRICE CONTINUES TO INCREASE Driven by strong demand, the median price continued to

will continue to hold leverage over buyers. The elevated

increase throughout the Florida East Coast. The median

demand should spur further price increases even

price of condos increased by more than 6% in November

as mortgage rates may increase next year. Housing

to reach a record-high of $282,000. The single family

affordability will increasingly become an issue for some

home median price increased by more than 2% from

households, particularly potential buyers of starter

the previous month. While the increase in pricing strains

homes and smaller condo units, though the surge

affordability, buyers continued to compete for quality

in apartment rents may complicate the own/rent

homes. In November, roughly 26% of sales closed at

decision. The overall trajectory of the economy, as well

greater than the list price. Tighter conditions in the single

as prospects for a full recovery of tourism activity, will

family home segment magnified this trend, with nearly

remain influenced by the pandemic. Despite potential

33% of sales closing above the asking price.

headwinds, the Florida East Coast housing market should end this year on a positive note with strong prospects for

With few prospects for inventory to increase substantially

continued growth into 2022.

in the coming months, sellers in most neighborhoods

AVAILABLE INVENTORY FLORIDA’S EAST COAST SINGLE- FAMILY HOMES AND CONDOMINIUMS ↓6%

Sep 2021

Oct 2021

Nov 2021 ↓7% ↓8%

↓ 9%

↓ 10%

↓14%


SOLD ABOVE LISTED PRICE FLORIDA’S EAST COAST

NOV 2020

NOV 2021

NOV 2020

ABOVE LISTING PRICE

SINGLE-FAMILY HOMES

FOR SALE

MEDIAN SALES PRICE

NOV 2021

AT LISTING PRICE OR LOWER

AVG SALES PRICE

PRICE PER SF

CONDOMINIUMS

CLOSED TRANSACTIONS

HIGHEST SALES


SINGLE-FAMILY HOMES

Miami-Dade County BUYER DEMAND REMAINS STRONG While overall sales volume was stable in November, transactions priced between $1 million and $3 million accelerated by 20%. Even as the county has the greatest months of supply, roughly 29% of homes sold above the asking price.

AVERAGE SALES PRICE

DAYS ON MARKET


SINGLE-FAMILY HOMES

Miami-Dade County SALES BY NEIGHBORHOOD AVG SALES PRICE

PRICE RANGE

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

NOV 2020

ABOVE LISTING PRICE

PRICE PER SF

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

NOV 2021

AT LISTING PRICE OR LOWER

↓ 4%


CONDOMINIUMS

Miami-Dade County LARGE INVENTORY PRESENTS OPPORTUNITIES FOR BUYERS In the last month, inventory decreased by nearly 7% as the pace of sales accelerated. Despite this improvement, the share of units sold above list price was the lowest in the region.

AVERAGE SALES PRICE

DAYS ON MARKET


CONDOMINIUMS

Miami-Dade County SALES BY NEIGHBORHOOD AVG SALES PRICE

PRICE PER SF

CLOSED TRANSACTIONS

DAYS ON MARKET

-

PRICE RANGE

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

NOV 2020

ABOVE LISTING PRICE

PRICE PER SF

CLOSED TRANSACTIONS

DAYS ON MARKET

AVAILABLE LISTINGS

NOV 2021

AT LISTING PRICE OR LOWER

↓6%


SINGLE-FAMILY HOMES

Broward County HEIGHTENED COMPETITION LEADS TO PRICE GAINS The county maintained the greatest share of homes sold over the list price in the region at 37%. This competition helped drive the average price paid per square foot to a new high in November.

AVERAGE SALES PRICE

DAYS ON MARKET


SINGLE-FAMILY HOMES

Broward County SALES BY NEIGHBORHOOD AVG SALES PRICE

PRICE RANGE

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

NOV 2020

ABOVE LISTING PRICE

PRICE PER SF

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

NOV 2021

AT LISTING PRICE OR LOWER

↓ 9%


CONDOMINIUMS

Broward County INVENTORY FALLS, PRICES RISE Since June, listing inventory fell by more than 16%, bringing the number of available units below the 3,000 unit threshold for the first time. The strong sales activity led to a more than 4% rise from last month in the average price.

AVERAGE SALES PRICE

DAYS ON MARKET


CONDOMINIUMS

Broward County SALES BY NEIGHBORHOOD AVG SALES PRICE

PRICE RANGE

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

NOV 2020

PRICE PER SF

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

NOV 2021 ↓5%

ABOVE LISTING PRICE

AT LISTING PRICE OR LOWER


SINGLE-FAMILY HOMES

Palm Beach County SALES ABSORB INVENTORY AT ACCELERATING PACE In November, for-sale listings fell by more than 11%. The bulk of the increase in sales occurred in the $1 million to $3 million range. In contrast, the growth in sales in October was driven by the under $1 million category.

AVERAGE SALES PRICE

DAYS ON MARKET


SINGLE-FAMILY HOMES

Palm Beach County SALES BY NEIGHBORHOOD AVG SALES PRICE

PRICE RANGE

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

NOV 2020

ABOVE LISTING PRICE

PRICE PER SF

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

NOV 2021

AT LISTING PRICE OR LOWER

↓ 11%


CONDOMINIUMS

Palm Beach County INVENTORY FALLS AS UNITS SELL QUICKLY Inventory fell by 5% and the average list price increased to more than $765,000. Counter to the regional trend, the average number of days on the market decreased. The average price per square foot reached a new high in November.

AVERAGE SALES PRICE

DAYS ON MARKET


CONDOMINIUMS

Palm Beach County SALES BY NEIGHBORHOOD AVG SALES PRICE

PRICE RANGE

AVG SALES PRICE

PRICE PER SF

CLOSED TRANSACTIONS

DAYS ON MARKET

CLOSED TRANSACTIONS

DAYS ON MARKET

AVAILABLE LISTINGS

SOLD ABOVE LISTED PRICE

NOV 2020

PRICE PER SF

NOV 2021 ↓5%

ABOVE LISTING PRICE

AT LISTING PRICE OR LOWER


SINGLE-FAMILY HOMES

Martin County SALES ACTIVITY REBOUNDS Sales activity increased for the first time in five months as tight inventory had hampered volume in recent months. The recovery in sales was driven by the less than $1 million price range.

AVERAGE SALES PRICE

DAYS ON MARKET


SINGLE-FAMILY HOMES

Martin County SALES BY NEIGHBORHOOD AVG SALES PRICE

PRICE RANGE

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

NOV 2020

ABOVE LISTING PRICE

PRICE PER SF

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

NOV 2021

AT LISTING PRICE OR LOWER

↓ 23%


CONDOMINIUMS

Martin County PRICE GAINS REDUCING COMPETITION Pricing surged in recent months, and the upward shift in seller expectations helped to reduce the number of units sold above list price. The condo market tightened in November and at the current sales pace inventory would last one month.

AVERAGE SALES PRICE

DAYS ON MARKET


CONDOMINIUMS

Martin County SALES BY NEIGHBORHOOD AVG SALES PRICE

PRICE RANGE

PRICE PER SF

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

NOV 2020

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

NOV 2021 ↓

ABOVE LISTING PRICE

AT LISTING PRICE OR LOWER

15%


SINGLE-FAMILY HOMES

Indian River County LOWER PRICED HOMES OUTPERFORMING MARKET In November, inventory fell by more than 11% as buyers absorbed homes at a faster pace. As the bulk of homes sold were priced less than $1 million, the growing number of higher priced homes listed on the market increased the median list price by more than 9%.

AVERAGE SALES PRICE

DAYS ON MARKET


SINGLE-FAMILY HOMES

Indian River County SALES BY NEIGHBORHOOD AVG SALES PRICE

PRICE RANGE

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

NOV 2020

ABOVE LISTING PRICE

PRICE PER SF

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

NOV 2021

AT LISTING PRICE OR LOWER

↓ 11%


CONDOMINIUMS

Indian River County MOST COMPETITIVE CONDO MARKET The condo market produced the greatest share of units sold above list price in the region. Increased competition led to an 8.5% increase in the average price paid per square foot.

AVERAGE SALES PRICE

DAYS ON MARKET


CONDOMINIUMS

Indian River County SALES BY NEIGHBORHOOD AVG SALES PRICE

PRICE RANGE

AVG SALES PRICE

PRICE PER SF

SOLD ABOVE LISTED PRICE

NOV 2020

ABOVE LISTING PRICE

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

NOV 2021

AT LISTING PRICE OR LOWER

↓ 7%


SINGLE-FAMILY HOMES

Brevard County TIGHT MARKET PUSHES PRICING TO NEW HIGHS Brevard County is the tightest single family market in the region, with approximately three weeks of supply at the current sales pace. The average price per square foot reached a new high in November.

AVERAGE SALES PRICE

DAYS ON MARKET


SINGLE-FAMILY HOMES

Brevard County SALES BY NEIGHBORHOOD AVG SALES PRICE

PRICE RANGE

AVG SALES PRICE

ABOVE LISTING PRICE

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

SOLD ABOVE LISTED PRICE

NOV 2020

PRICE PER SF

NOV 2021

AT LISTING PRICE OR LOWER

↓ 10%


CONDOMINIUMS

Brevard County CONDO MARKET TIGHTENS The number of listings fell by nearly 7% in November, reaching the lowest point since early in the year. The average price of listed properties increased by 6% to $323 per square foot, the highest figure on record.

AVERAGE SALES PRICE

DAYS ON MARKET


CONDOMINIUMS

Brevard County SALES BY NEIGHBORHOOD AVG SALES PRICE

PRICE RANGE

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

NOV 2020

ABOVE LISTING PRICE

PRICE PER SF

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

N0V 2021

AT LISTING PRICE OR LOWER

↓ 1%


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