TRENDS July 2021 - Today's Real Estate Market Along Florida's East Coast

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MARKET REPORT JULY 2021

TRENDS

TODAY’S REAL ESTATE ALONG FLORIDA’S EAST COAST

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TRENDS: TODAY’S REAL ESTATE ALONG FLORIDA’S EAST COAST ONE Sotheby’s International Realty is proud to present 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. Our goal is to provide high-quality and easy-to-use information to guide our clients with superior insights and a strategic perspective to real estate. By keeping a close eye on the market, we can better advise our clients with timely, important knowledge. 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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O N ESOTH E BYS R E ALT Y.CO M

4AVENTURA

BRICKELL BOCA RATON COCOA VILLAGE CORAL GABLES DELRAY BEACH FT LAUDERDALE JUPITER KEY BISCAYNE MELBOURNE BEACH MIAMI BEACH PALM BEACH GARDENS STUART SUNNY ISLES VERO BEACH WESTON


TABLE OF CONTENTS

INTRODUCTION: THE REAL ESTATE MARKET ALONG FLORIDA’S EAST COAST

MIAMI - DADE COUNTY SINGLE- FAMILY HOMES MIAMI - DADE COUNTY CONDOMINIUMS

BROWARD COUNTY SINGLE- FAMILY HOMES BROWARD COUNTY CONDOMINIUMS

PALM BEACH COUNTY SINGLE- FAMILY HOMES PALM BEACH COUNTY CONDOMINIUMS

MARTIN COUNTY SINGLE- FAMILY HOMES MARTIN COUNTY CONDOMINIUMS

INDIAN RIVER COUNTY SINGLE- FAMILY HOMES INDIAN RIVER COUNTY CONDOMINIUMS

BREVARD COUNTY SINGLE- FAMILY HOMES BREVARD COUNTY CONDOMINIUMS

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THE REAL ESTATE MARKET ALONG FLORIDA’S EAST COAST

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BOOMING DEMAND ACROSS ALL PRICE RANGES The Florida East Coast housing market accelerated

by domestic tourism, the leisure and hospitality sector

further, reaching record levels of sales activity and

added the bulk of jobs during the last few months.

average prices throughout the region. The combination

As international visitor volume recovers from the

of economic growth, recovery of migration and low

pandemic, travelers will add a boost to the regional

mortgage rates continued to drive outsized buyer

economy.

demand across all price ranges. The regional economy added nearly 115,000 jobs year-to-date through May,

Homebuyer demand remained strong, with elevated

highlighting the strong recovery of the region. Spurred

numbers of closings as well as homes entering escrow. However, even with the robust buyer demand, recent price increases hampered affordability and the stiff competition generated buyer fatigue among some

AVERAGE SALES PRICE BY COUNTY FLORIDA’S EAST COAST

JUN 2020

JUN 2021

SINGLE-FAMILY HOMES

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JUN 2020

JUN 2021

CONDOMINIUMS


prospective buyers. Despite this, sales volume remained

months ago, while the average price increased to

elevated, with nearly 13,400 homes and condos sold

nearly $810,000. The median condo price increased

throughout the region, the highest monthly total in

to $265,000, 2% higher than May and 6% higher than

several years. Closed sales in June increased by 11%

March. In the last year, the median single family home

compared with May and 58% higher than June 2020

price increased by 27% while the median condo price

when the housing market began to recover from the

increased by 23%. In some neighborhoods, prices have

initial wave of the pandemic.

increased by more than 50% in the last year. The record-shattering surge in values spurred more

SURGE IN VALUE ENTICES MORE HOMEOWNERS TO LIST SINGLE-FAMILY HOMES Across the country, the combination of pent-up demand and historically low mortgage rates produced recordbreaking average prices, and the Florida East Coast housing market was no different. The median single family home price reached $470,000, an increase of more than 4% from May and more than 9% from three

existing homeowners to list their homes for sale. The number of single family homes available for sale increased by nearly 10% even as a large number of homes closed escrow quickly. June was the second month that single family home listings increased in the region. On the other hand, for-sale condo inventory decreased by 7% in June, the eighth-consecutive monthly decrease, bringing the number of listings to its lowest point in several years.

MEDIAN SALES PRICE FLORIDA’S EAST COAST $470,000 +4%

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THE REAL ESTATE MARKET ALONG FLORIDA’S EAST COAST

MULTIPLE OFFERS AND CASH BUYERS Despite more homes listed in the last month, buyer demand

In the single family home market, the average time

continued to exceed supply in most cities. Particularly in

on market decreased to 35 days, nearly 15% fewer

desirable neighborhoods, as buyers competed for homes,

than May. Also underscoring the intense competition

the share of listings receiving multiple offers, as well as the

for homes, following the high water mark set in

number of cash offers, increased. Throughout the region,

May, the share of homes sold at greater than list

reductions in time on market highlighted that demand still

price increased to nearly 27%. In some counties,

outpaces for-sale supply. The average time on market for

competition was even greater, with more than 40%

condos fell to 80 days, a decrease of 6% from last month.

of single family homes sold in Brevard and Broward counties purchased for more than the asking price.

AVAILABLE INVENTORY FLORIDA’S EAST COAST

↓3%

SINGLE- FAMILY HOMES AND CONDOMINIUMS

Apr 2021

May 2021

Jun 2021

↓3% ↓3%

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30% 4%

↓3%


J UL 202 1

for a limited number of homes for sale, expect time

LOW MORTGAGE RATES, OUT-OF-STATE AND FOREIGN BUYERS WILL KEEP THE MARKET STRONG

on market to decrease and bids over asking price to increase. As migration trends return to historical norms, including the inflow of retirees to South Florida, and households capitalize on investment

Buyer demand should remain strong through the summer

gains, demand should remain strong while the share

even as prices continue to rise to new records. While

of cash offers may rise. The ability of real estate to

affordability is a constraint for some potential buyers,

act as a hedge against rising inflation should attract

the low mortgage rate environment may convince some

additional out-of-state and foreign buyers to the

households to stretch financially rather than risk higher

Florida East Coast, adding another layer of buyer

mortgage rates in the future. With continued competition

demand to an already strong housing market.

SOLD ABOVE LISTED PRICE FLORIDA’S EAST COAST

JUN 2020

SINGLE-FAMILY HOMES

JUN 2021

ABOVE LISTING PRICE

JUN 2020

AT LISTING PRICE OR LOWER

JUN 2021

CONDOMINIUMS

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LISTING/SALES BY COUNTY FLORIDA’S EAST COAST FOR SALE

MEDIAN SALES PRICE

AVG SALES PRICE

PRICE PER SF

CLOSED TRANSACTIONS

HIGHEST SALES

-

This report was prepared with data from public and private sources, and we believe the data to be reliable but make no representation or warranty as to its completeness or accuracy. The information contained in this report is dynamic and may change over time. Housing data is sourced from local Multiple Listing Services (MLS), including Beaches MLS, Brevard County MLS, Broward County MLS, Miami-Dade County MLS, RAIRC MLS, and RAMC MLS, and is provided on an “as is” basis. RCG and One Sotheby’s International Realty assume no responsibility for errors or omissions.

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SINGL E-FAM ILY H O M ES

MIAMI-DADE COUNTY

JUNE SALES VOLUME REBOUNDS Closed sales accelerated by 13% in June, driven by a surge of sales in the $1 million range. Recent price gains have pulled more homes onto the market as inventory increased for the second consecutive month.

AVERAGE SALES PRICE

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DAYS ON MARKET


SALES BY NEIGHBORHOOD AVG SALES PRICE

PRICE PER SF

CLOSED TRANSACTIONS

DAYS ON MARKET

-

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

JUN 2020

ABOVE LISTING PRICE

PRICE PER SF

CLOSED TRANSACTIONS

DAYS ON MARKET

AVAILABLE LISTINGS

JUN 2021

PRICE RANGE

6%

AT LISTING PRICE OR LOWER

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COND OM IN IU M S

MIAMI-DADE COUNTY

CONDOS PRICED LESS THAN $1 MILLION SELL QUICKLY Monthly closed sales increased by 16%, a strong recovery from the dip in May. The pace of sales absorbed available units, reducing for-sale inventory by 5%. Demand for lower priced condos surged, with buyers paying more than the list price for 12% of units, the highest share in several years.

AVERAGE SALES PRICE

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DAYS ON MARKET


SALES BY NEIGHBORHOOD AVG SALES PRICE

PRICE PER SF

CLOSED TRANSACTIONS

DAYS ON MARKET

-

PRICE RANGE

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

JUN 2020

PRICE PER SF

CLOSED TRANSACTIONS

DAYS ON MARKET

AVAILABLE LISTINGS

JUN 2021 ↓6%

ABOVE LISTING PRICE

AT LISTING PRICE OR LOWER

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SINGL E-FAM ILY H O M ES

BROWARD COUNTY

BUYER COMPETITION ACCELERATES Underscoring the heightened competition, the average days on market plummeted by 9% in June and the share of homes sold above the asking price was the highest in the region. Gains in home equity prompted more owners to list homes for sale, which will provide some relief to the pent-up demand in the coming months.

AVERAGE SALES PRICE

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DAYS ON MARKET


SALES BY NEIGHBORHOOD AVG SALES PRICE

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

JUN 2020

ABOVE LISTING PRICE

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

JUN 2021

PRICE RANGE

PRICE PER SF

10%

AT LISTING PRICE OR LOWER

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COND OM IN IU M S

BROWARD COUNTY

PURCHASE ACTIVITY REBOUNDS IN JUNE Sales volume surged by 12% in June following a modest slowdown in May, and for-sale inventory fell by nearly 10%. With demand outpacing supply, median price growth returned to the county.

AVERAGE SALES PRICE

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DAYS ON MARKET


SALES BY NEIGHBORHOOD AVG SALES PRICE

PRICE RANGE

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

JUN 2020

ABOVE LISTING PRICE

PRICE PER SF

CLOSED TRANSACTIONS

PRICE PER SF

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

JUN 2021

↓5%

AT LISTING PRICE OR LOWER

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SINGL E-FAM ILY H O M ES

PALM BEACH COUNTY

BUYER DEMAND REMAINS HIGH Sales volume accelerated by 10% from the previous month. Buyer competition, including many all-cash offers, drove pricing higher. More than one-third of homes sold closed for more than the asking price.

AVERAGE SALES PRICE

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DAYS ON MARKET


SALES BY NEIGHBORHOOD AVG SALES PRICE

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

JUN 2020

ABOVE LISTING PRICE

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

JUN 2021

PRICE RANGE

PRICE PER SF

7%

AT LISTING PRICE OR LOWER

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COND OM IN IU M S

PALM BEACH COUNTY

STRONG SALES PACE CONTINUES June sales remained elevated even as fewer condo units came on the market. At the current pace of sales, it would take less than 35 days to absorb the available inventory. The average days on market fell to its lowest point this cycle.

AVERAGE SALES PRICE

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DAYS ON MARKET


SALES BY NEIGHBORHOOD AVG SALES PRICE

PRICE RANGE

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

JUN 2020

PRICE PER SF

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

JUN 2021 ↓10%

ABOVE LISTING PRICE

AT LISTING PRICE OR LOWER

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SINGL E-FAM ILY H O M ES

MARTIN COUNTY

BUYER DEMAND SPILLING INTO THE $1 MILLION RANGE Sales activity was elevated in the less than $1 million range for the second consecutive month. The strong demand spilled into the $1 million to $3 million range, where sales increased by 39% in June. The bulk of the increase in sales were homes priced close to $1 million.

AVERAGE SALES PRICE

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DAYS ON MARKET


SALES BY NEIGHBORHOOD AVG SALES PRICE

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

JUN 2020

ABOVE LISTING PRICE

CLOSED TRANSACTIONS

DAYS ON MARKET

PRICE PER SF

CLOSED TRANSACTIONS

DAYS ON MARKET

AVAILABLE LISTINGS

JUN 2021

PRICE RANGE

PRICE PER SF

19%

AT LISTING PRICE OR LOWER

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COND OM IN IU M S

MARTIN COUNTY

LACK OF INVENTORY SLOWS SALES Following three strong months, the pace of sales slowed by 15% in June. With little for-sale inventory, prospective buyers had few options and some may have elected to wait for the right unit

AVERAGE SALES PRICE

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DAYS ON MARKET


SALES BY NEIGHBORHOOD AVG SALES PRICE

PRICE RANGE

PRICE PER SF

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

JUN 2020

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

JUN 2021 ↓34%

ABOVE LISTING PRICE

AT LISTING PRICE OR LOWER

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SINGL E-FAM ILY H O M ES

INDIAN RIVER COUNTY

INVENTORY ON THE RISE For-sale inventory increased by 13% in June as some homeowners sought to capitalize on recent home equity gains. The bulk of homes newly listed were in the lower half of the pricing spectrum, which may not alleviate the pressure of heightened demand at the upper pricing tiers.

AVERAGE SALES PRICE

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DAYS ON MARKET


SALES BY NEIGHBORHOOD AVG SALES PRICE

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

JUN 2020

ABOVE LISTING PRICE

PRICE PER SF

CLOSED TRANSACTIONS

DAYS ON MARKET

CLOSED TRANSACTIONS

DAYS ON MARKET

AVAILABLE LISTINGS

JUN 2021

PRICE RANGE

PRICE PER SF

13%

AT LISTING PRICE OR LOWER

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COND OM IN IU M S

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INDIAN RIVER COUNTY

ACTIVITY CONCENTRATED IN LESS THAN $1 MILLION RANGE The recent price growth trend moderated in June, particularly in the upper pricing tiers. For condos priced less than $1 million, demand remained elevated and the average price increased by 4% from May.

AVERAGE SALES PRICE

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DAYS ON MARKET


SALES BY NEIGHBORHOOD AVG SALES PRICE

PRICE RANGE

AVG SALES PRICE

PRICE PER SF

SOLD ABOVE LISTED PRICE

JUN 2020

ABOVE LISTING PRICE

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

JUN 2021

↓13%

AT LISTING PRICE OR LOWER

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SINGL E-FAM ILY H O M ES

BREVARD COUNTY

MEDIAN PRICE SURGED IN JUNE Strong buyer demand pushed the median price higher by more than 8% in June. Available inventory remained somewhat limited, and competition among prospective buyers drove the share of homes sold above list price to 42%.

AVERAGE SALES PRICE

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DAYS ON MARKET


SALES BY NEIGHBORHOOD AVG SALES PRICE

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

JUN 2020

ABOVE LISTING PRICE

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

JUN 2021

PRICE RANGE

PRICE PER SF

28%

AT LISTING PRICE OR LOWER

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COND OM IN IU M S

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BREVARD COUNTY

COMPETITION DROVE BUYERS TO BID OVER ASKING Buyer competition also resulted in a large number of condos sold for more than the asking in price. In fact, Brevard County produced the highest share of units sold above asking, nearly double the regional average.

AVERAGE SALES PRICE

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DAYS ON MARKET


SALES BY NEIGHBORHOOD AVG SALES PRICE

AVG SALES PRICE

SOLD ABOVE LISTED PRICE

JUN 2020

ABOVE LISTING PRICE

PRICE PER SF

CLOSED TRANSACTIONS

CLOSED TRANSACTIONS

DAYS ON MARKET

DAYS ON MARKET

AVAILABLE LISTINGS

JUN 2021

PRICE RANGE

PRICE PER SF

37%

AT LISTING PRICE OR LOWER

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