Broward County Luxury Home Sales on the Rise

It's no secret that the luxury real estate market is doing well across the United States. In South Florida, in particular, we're seeing a surge in luxury home sales, particularly in Broward County. If you're considering selling your luxury home in Broward County, now is definitely the time to do it! I can help you get the best price for your property and ensure a smooth transaction. Get in touch today to learn more.

According to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system, luxury $1 million and up single-family home sales, mid-market condo transactions, and single-family inventory all increased year over year in June 2022 in Broward County.

Since demand is still high, more transactions would occur in the market if Broward County and Fort Lauderdale real estate had more inventory, according to BROWARD-MIAMI President David Dweck. As single-family inventory increased year over year for the second consecutive month, "we are beginning to see indicators that Broward inventory is beginning to recover from all-time lows."

Luxury Single-Family Home Sales in Broward Rise

Due to the quick increase in mortgage rates from an average of 3 percent to 6 percent in just six months and low inventory, Broward's total house sales fell 22.9 percent from 4,121 to 3,178 on an annual basis.

While down from last year, Broward's house sales are still roughly in line with the 3,454 sales the county saw in June 2018 when the market had 5 percent mortgage rates.

Sales of single-family homes in Broward fell by 20.1%, from 1,803 to 1,440. Due to the quick increase in mortgage rates from an average of 3 percent to 6 percent in just six months and low inventory, Broward condo transactions fell by 25 percent, from 2,318 to 1,738, and overall house sales fell by 22.9 percent, from 4,121 to 3,178.

Although down from last year, Broward's home sales are still roughly on par.

Single-family luxury transactions in Broward rose by 0.4% to 245 in the category of luxury sales, which include properties selling for $1 million and above. To 74 transactions, Broward condo luxury sales declined by 1.3 percent.

Broward sales soared to a record high in June 2021 as a result of a pandemic-driven demand, increased supply (especially in condos), 3 percent mortgage rates, and higher supply overall.

When contracts were negotiated in April and May, increased rates of 5–6 percent and lesser inventory had an effect on Broward sales in June 2022.

Rising mortgage rates have an impact on housing. Mortgage interest rates last reached 5% in 2018. When the market last saw 5 percent mortgage rates in 2018, when there were 3,454 house sales in June in Broward, the results were roughly comparable.

Increase in Mid-Market $400k-$600k Condo Sales in June 2022

In June 2022, there were 280 transactions for existing condos in Broward priced between $400K and $600K, a 32.1 percent increase from the previous month. Due to a scarcity of inventory, Broward single-family home purchases between $400K and $600K declined by 20% year over year to 477 deals in June 2022.

Condo sales in the mid-market are rising because there is more inventory there. Condos priced between $400K and $600K have a supply of 2.5 months. That is the third-highest price bracket in the market, after $600,000 to $999,999 and $1 million over (4.5 months of supply) (4.1 months). The demand is so great that Broward would see an increase in sales if the supply were greater.

Major condo buyers also come from abroad. Foreign house buyers are becoming more prevalent in South Florida as a result of rising global immunization rates and insecure political environments worldwide.

Since November 2021, when foreigners who had received vaccinations were permitted to travel to the United States once more, South Florida, the country's most popular destination for foreign buyers, has seen an increase in foreign investment. Miami is a world-class global metropolis with superior real estate prices than other comparable global cities, which attracts international purchasers. With our extraordinary diversity, acceptance of all cultures, and amenities, foreign purchasers feel at home.

Miami and South Florida are still in high demand, as shown by the low number of available properties. This is good news for current residents and those thinking of buying a property here. If you have any questions about the market or want to know more about what it’s like to live in this area, contact me – I would be happy to chat with you!

View FULL report: CLICK