TRENDS February 2022 Monthly Report - Today's Real Estate Market Along Florida's East Coast

Page 1

MARKET REPORT FEBRUARY 2022

TRENDS

TODAY’S REAL ESTATE ALONG FLORIDA’S EAST COAST


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LOCAL EXPERTISE WITH A GLOBAL PERSPECTIVE I am excited to share the February edition of our market report offering strategic perspectives on real estate. The real estate market along Florida's East Coast continues to expand, and ONE Sotheby's International Realty is harnessing that momentum by enhancing its local presence. We are proud to announce that ONE Sotheby's International Realty has joined forces with First Coast Sotheby's International Realty. This partnership creates an unprecedented leader in luxury real estate along Florida's East Coast and makes us the leading brokerage covering markets from Amelia Island, Jacksonville, Palm Coast, Ponte Vedra and St. Augustine, all the way to Miami. 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 Rosen Consulting Group, a trusted advisor to top public and private real estate organizations. Our reports are your best resource to make smarter real estate decisions. Soon, we will be including insights from our new markets in Northeast Florida. As Florida's East Coast keeps catching attention as a primary residence destination, we'll continue to combine our partner's analytical approach and global viewpoint with the local expertise of our real estate professionals to advise our clients with timely and relevant knowledge. 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.


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THE REAL ESTATE MARKET ALONG FLORIDA’S EAST COAST

FE B RUA RY 202 2

After a record-breaking year, the Florida East Coast

Following a solid end to 2021, sales volume decreased

housing market strengthened. Limited availability of

substantially in January due to typical seasonal trends

homes for sale and decreasing affordability remain

and limited inventory constrained sales. In January,

the strongest headwinds to start the year. The Florida

sales activity slowed by 23%, closing the month with

economy continued to improve, helping to support

slightly more than 8,000 home sales. The single-family

even greater housing demand. Additionally, the

home market slowed to a greater degree than the

recovery in the local tourism industry and international

condo segment where inventory was slightly more

travel should increase foreign sales in the coming year,

available. In comparison with one year ago, sales

further bolstering buyer demand.

volume was slightly higher.

AVERAGE SALES PRICE BY COUNTY FLORIDA’S EAST COAST

JAN 2021

JAN 2022

SINGLE-FAMILY HOMES

JAN 2021

JAN 2022

CONDOMINIUMS


SUPPLY OF SINGLE-FAMILY LISTINGS WOULD BE ABSORBED WITHIN ONE AND A HALF MONTHS To begin the year, few homes came to market. Available

segment stabilized at slightly more than one month. As

inventory fell by 10% to roughly 15,500 homes.

condo purchase activity continued to accelerate, the

Compared with one year ago, for-sale inventory

share of units closed above the asking price reached

decreased by 60%. With few options for purchase,

20%. In the single-family home segment, where the

potential buyers remained on the sidelines in some

average list price increased by more than 6% in January

neighborhoods, leading to the drop in pending and closed

alone, the share of units closing at a premium stabilized

sales. As the sales pace slowed, the months of supply

in the low-30% range.

ticked up slightly. At the current sales rate throughout the region, condo inventory would be absorbed within

Throughout the Florida East Coast, pricing trends for

slightly more than two months while single-family listings

January were somewhat mixed. Overall, the median

would be absorbed within one and a half months.

single-family home price decreased slightly while the median condo price ticked higher. By county, the median

Available homes in prime neighborhoods or priced

single-family home price increased the most in Indian

below market perceptions continued to garner the

River County, while the median condo price increased

most significant buyer interest and sold comparatively

the most in Miami-Dade County. The median price per

quickly. The average time on market of condos

square foot for both segments increased, highlighting the

approached a cyclical low while the single-family home

value appreciation for most homes in the region.

MEDIAN SALES PRICE FLORIDA’S EAST COAST

$480,000 -1%


THE REAL ESTATE MARKET ALONG FLORIDA’S EAST COAST

FE B RUA RY 202 2

FOR HOMES UNDER A $1 MILLION, CLOSINGS ABOVE THE LIST PRICE MORE THAN DOUBLED

MULTIPLE BIDS AND NEW PRICING RECORDS

In line with year-end activity, sales and price

Following a positive start to 2022, the regional

appreciation of homes in the lower and middle levels

housing market is poised to accelerate and potentially

of the pricing spectrum accelerated. In particular,

set new pricing records. The coming year is likely to

sales volume in the $1 million to $3 million range

witness similar trends to the record-breaking 2021.

increased by 23% compared with one year ago while

While home values appreciated substantially during

transactions in the $3 million to $5 million range

the past two years, existing homeowners may remain

surged by 77%. For homes priced less than $1 million,

reluctant to sell properties. With little change to

the number of sales closed above the list price more

for-sale inventory on the horizon, the elevated buyer

than doubled.

demand will funnel into the few remaining listings, leading to multiple bid situations and rising home prices in many neighborhoods. Rising mortgage rates may keep some potential buyers on the sidelines but is unlikely to dampen much demand in the near term.

AVAILABLE INVENTORY FLORIDA’S EAST COAST SINGLE- FAMILY HOMES AND CONDOMINIUMS ↓10%

Nov 2021

Dec 2021

Jan 2022 ↓10% ↓11%

↓ 16%

↓ 13%

↓12%


SOLD ABOVE LISTED PRICE FLORIDA’S EAST COAST

JAN 2021

JAN 2022

JAN 2020

ABOVE LISTING PRICE

SINGLE-FAMILY HOMES

FOR SALE

MEDIAN SALES PRICE

JAN 2021

AT LISTING PRICE OR LOWER

AVG SALES PRICE

PRICE PER SF

CONDOMINIUMS

CLOSED TRANSACTIONS

HIGHEST SALES


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ONE Sotheby's INTERNATIONAL REALTY

© 2021 ONE Solheby's International Realty. All rights reserved. Sotheby's International Realty®and the Sotheby's International Realty Logo are service marks licensed to Sotheby's International Realty Affiliates LLC and used with permission. ONE Sotheby's International Realty fully supports the principles of the Fair Housing Act and the Equal Opportunity Act Each franchise is independently owned and operated.Any services or products provided by independently owned and operated franchisees are not provided by, affiliated with or related to Solheby's International Realty Affiliates LLC nor any of its affiliated companies. The information contained herein is deemed accurate but not guaranteed. Oral representations cannot be relied upon as correctly staling the representations of the developer. For correct representations, reference should be made to the documents required by section 718.503, Florida Statutes, to be furnished by a developer to a buyer or lessee. Pricing subject to change wtthout notice.


SINGLE-FAMILY HOMES

Miami-Dade County INCREASED ACTIVITY IN ENTRY LEVEL MARKET Tight supply continued to constrain sales, yet buyer demand accelerated. In particular, bidding activity for homes priced less than $1 million accelerated with nearly 47% of homes in this range closed at greater than 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

JAN 2021

PRICE PER SF

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

JAN 2022 ↓ 8%

ABOVE LISTING PRICE

AT LISTING PRICE OR LOWER


CONDOMINIUMS

Miami-Dade County MEDIAN PRICE AT HISTORIC HIGH The median price reached a new high, increasing by nearly 3% in the last month. Even as buyer demand increased, the share of sales over the asking price was the lowest in the region at 13%.

AVERAGE SALES PRICE

DAYS ON MARKET


CONDOMINIUMS

Miami-Dade County SALES BY NEIGHBORHOOD AVG SALES PRICE

PRICE RANGE

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

JAN 2020

ABOVE LISTING PRICE

PRICE PER SF

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

JAN 2022

AT LISTING PRICE OR LOWER

↓11%


SINGLE-FAMILY HOMES

Broward County MEDIAN PRICE REACHES RECORD HIGH The median price reached a record level in January. In the last year, the median price increased by more than 20% and more than 38% of homes closed above the asking price, the highest level in the region. Luxury home sales accelerated, with 22 homes sold at more than $3 million, more than double last January.

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

JAN 2021

ABOVE LISTING PRICE

PRICE PER SF

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

JAN 2022

AT LISTING PRICE OR LOWER

↓ 10%


CONDOMINIUMS

Broward County CONDO MARKET ALSO REACHES RECORD LEVEL The median condo price also broke the county record after increasing by 2% in the last month. Intense bidding on many properties brought the share of units sold for more than the list price to 22%, the highest share in county history.

AVERAGE SALES PRICE

DAYS ON MARKET


CONDOMINIUMS

Broward County SALES BY NEIGHBORHOOD AVG SALES PRICE

PRICE RANGE

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

JAN 2021

ABOVE LISTING PRICE

PRICE PER SF

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

JAN 2022

AT LISTING PRICE OR LOWER

↓10%


SINGLE-FAMILY HOMES

Palm Beach County COMPETITION FOR LOWER PRICED HOMES SURGED The median price increased by nearly 24% in the last year, remaining near the record set in December. Homes priced below $1 million sold much faster than last year and more than 30% of these sold at a premium above the asking price.

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

JAN 2021

ABOVE LISTING PRICE

PRICE PER SF

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

JAN 2022

AT LISTING PRICE OR LOWER

↓ 9%


CONDOMINIUMS

Palm Beach County LIMITED INVENTORY CONCENTRATES BUYER ACTIVITY Available inventory fell by more than 74% in the last year, with concentrated buyer competition helping to boost the median price by roughly 18% during that period. At the current pace of sales, for-sale inventory would be absorbed in a little more than five weeks.

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

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

SOLD ABOVE LISTED PRICE

JAN 2021

PRICE PER SF

JAN 2022 ↓13%

ABOVE LISTING PRICE

AT LISTING PRICE OR LOWER


SINGLE-FAMILY HOMES

Martin County LACK OF INVENTORY LEADS TO FEW SALES Sales volume fell once again, reaching roughly half of the December total. Though the median price also fell by 16% from the previous month, roughly one-third of homes sold for more than the list price. For-sale inventory reached its lowest level on record.

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

JAN 2021

PRICE PER SF

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

JAN 2022 ↓ 23%

ABOVE LISTING PRICE

AT LISTING PRICE OR LOWER


CONDOMINIUMS

Martin County HIGHER COMPETITION FOR MORE AFFORDABLE CONDOS Buyer competition accelerated for condos priced less than $1 million. Almost 40% of units were sold above the listing price, compared to only 10.3% of similarly priced units last year.

AVERAGE SALES PRICE

DAYS ON MARKET


CONDOMINIUMS

Martin County SALES BY NEIGHBORHOOD AVG SALES PRICE

PRICE RANGE

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

JAN 2021

PRICE PER SF

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

JAN 2022 ↓

ABOVE LISTING PRICE

AT LISTING PRICE OR LOWER

20%


SINGLE-FAMILY HOMES

Indian River County MEDIAN PRICE SURGED IN JANUARY The median price increased by 7% in January, driving the median price to a new record high. For-sale listings fell by 10% in January and the limited supply helped to drive the average days on market to nearly its lowest point.

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

JAN 2020

ABOVE LISTING PRICE

PRICE PER SF

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

JAN 2021

AT LISTING PRICE OR LOWER

↓ 10%


CONDOMINIUMS

Indian River County LIMITED INVENTORY CONSTRAINS SALES Limited supply remains the primary constraint on the market and sales volume fell to a low level. The increased competition did not translate into strong bidding activity, with only 17% of units closed at great than the list price.

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

JAN 2021

ABOVE LISTING PRICE

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

JAN 2022

AT LISTING PRICE OR LOWER

↓ 23%


SINGLE-FAMILY HOMES

Brevard County INVENTORY DECREASED WHILE PRICES INCREASED Inventory fell by 16% to begin the year and homes that came available for sale generally did so at higher prices. The average price per square foot for available homes increased by 5% from December.

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

JAN 2021

PRICE PER SF

JAN 2022

AT LISTING PRICE OR LOWER

↓ 16%


CONDOMINIUMS

Brevard County YEAR BEGINS AS A SELLER’S MARKET Condominium Inventory remained tight, with active listings decreasing below the 200 unit threshold for the first time since mid-2021. Limited inventory reduced sales activity in January even as the average days on market remained low.

AVERAGE SALES PRICE

DAYS ON MARKET


CONDOMINIUMS

Brevard County SALES BY NEIGHBORHOOD AVG SALES PRICE

PRICE RANGE

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

JAN 2021

ABOVE LISTING PRICE

PRICE PER SF

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

JAN 2022

AT LISTING PRICE OR LOWER

↓ 15%


For unmatched real estate expertise

© 2022 ONE Sotheby’s International Realty. All rights reserved. Sotheby’s International Realty® and the Sotheby’s International Realty Logo are service marks licensed to Sotheby’s International Realty Affiliates LLC and used with permission. ONE Sotheby’s International Realty fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Each franchise is independently owned and operated. Any services or products provided by independently owned and operated franchisees are not provided by, affiliated with or related to Sotheby’s International Realty Affiliates LLC nor any of its affiliated companies. The information contained herein is deemed accurate but not guaranteed.


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