By Fernando de Nuñez y Lugones, Executive Vice President, ONE Sotheby’s International Realty
In the wake of COVID-19, ONE Sotheby’s International Realty increased its commitment to service and to operate at the highest industry level. Critically looking at past performance of Q1 2020, ONE Sotheby’s has significantly invested in new marketing and technology assets to assist in serving our valued clients and thereby helping achieve their goals in an ever-shifting market landscape.
Below please find a summary report of our market performance from our communities across Florida’s East Coast during Q1 of 2020. During these unprecedented times, each area showed varying levels of demand January through March.
In a snapshot the total number of sales increased in Q1 2020 year-over-year (YoY) from Q1 2019. The growth rates ranged from 2% to 57%.
In Miami-Dade, the single-family homes (SFH) market increased by 27%, while condos saw an increase of 5%.
In Broward County, SFH was up 22% and condos, 20%. In Palm Beach County, the same markets grew by 24% and 36%, respectively, while Martin County saw gains of 2% and 57%.
A particular piece of data that should be highlighted illustrates that condominium sales prices increased as we geographically move north, while the SFH market behaved in the opposite direction.
The data demonstrates that Miami-Dade saw the highest jump in Single Family Homes in Q1 2020, while Martin County saw a smaller scale growth margin.
In spite of the significant gains made across all markets, in Miami-Dade and Martin County, we saw a decrease in the average sold price and average price per square foot. This trend line presented an opportunity for clients and investors to acquire property at an attractive value.
The overall market performance in Q1 2020 numbers reflect a decrease in sales driven primarily by the measures taken in March due to the COVID-19 social distancing and travel restrictions.
Q2 2020 is likely to show a significant decrease in activity, with an expected pent-up demand in Q3 and Q4 of 2020. We are closely monitoring the market for a possible reduction in inventory if sellers become reluctant to put their homes on the market during this period. However, we are bullish on the prospects for our region, and expect an increase in demand from domestic markets—especially from the Northeast due to Florida’s tax advantages and a strong shift in consumer preferences after the COVID-19 crisis.
As families reassess their lifestyle, value more space and amenities in their homes, and appreciate weather that allows for activities outside year-round, we expect the Single-Family Market in Florida’s East Coast to increase in upcoming months to reflect the consumer sentiment that is leading to higher aspirations for family time and active living.