Brokers in South Florida and the country are excited with strong July closings. August has been strong with new contracts driven by the pent-up demand from April and May. That demand moved forward to June and July with record numbers in sales. However, for the first seven months sales are off 10% and closing the gap. August year-over-year is also ahead of 2019.
The results are driven by tight inventory and low interest rates which mean hot sales. Digital advertising allows a consistent reach to feeder markets, locally and outside of South Florida. In August, Liede and I worked with buyers from Minneapolis, New Jersey, and Detroit, all three brought here for new professional employment. It must be said that digital is very nice, but, not as nice as seeing it in person. What a beautiful piece of earth we live on!
The luxury sales are the shining star in this new market. The wealthy are moving to Florida where they can continue to produce remotely. In 2020 through July, there was a 7% increase for home sales priced between $1-3m. The uber luxury market, $3m and higher, is up 31% through that same period. Luxury is dramatically up with the strongest market in over 50 years. In Pinecrest last year, there were 59 homes sold under $1mm whereas this year there are less than 25 through July. Overall, there are 125,000 sales in South Florida per year on average. 95% of the units are under $1mm representing 70% of the volume. The 5% of the units over $1m represent 30% of the volume.
We note that the market is settling back down, we are getting more inventory, thank you. Believe it or not there are approximately 12 weeks until Thanksgiving! By then we will know who the president is, and we will be back to normal. The worst of this tumultuous year behind us and the best in front of us. What a ride! What a country!
This year has given us millennials as home buyers. 37% of all home buyers are millennials that are worried about space, inside and outside the home. People looking to move up to a single-family home with a pool, home office and more. More compartmentalized living space allows for homework room, office(s) and separate living areas. More compartmentalized to allow for homework room, office(s), separate living areas. The walls are coming back!
Reportedly, millennials like technology and do not like to talk to people, they like to be behind their phones and never going to use realtors. Actually, millennials use realtors more than any other generation before them and see the need for the consultant to talk with. They may start with technology but end up using the personal support. Overall including all generations, 93% of home sales are with realtors. Sellers and buyers need someone trustworthy that they can count on.
The Keyes Company, Realtors is a local broker with 55 offices, 3,500 agents and a culture of care, personal touch and cultivation of relationships. This helps us help you when you are ready for a real estate consultation. Reach out to us and let us provide the information you will use to decide on what’s right for you. If the time is right for you, with The Keyes Company, you will get top notch marketing no matter what – best marketing there is.
Summer is over. School is starting. If you work, inspiration will come, if you wait, inspiration will too.