Fort Lauderdale Home Prices March 2016
We have a pretty good amount to talk about this month. What I really want to take a look at are the number of listings for sale, and the number of sold transactions last month. Sales velocity, or the lack thereof, is still a major cause for concern. On the bright side, pending sales and closed transactions are up month over month! Let's take a dive in and look closer at all of this.
I'll begin with month over month data. December into January numbers were absolutely brutal. I mean unheard of brutal. It wasn't going to take much velocity to bounce off the lows of January, thankfully we managed to pull that off! Month over month home sales rose 40.8%. Pending sales rose 28.4%. In other words for the very near term things looked pretty good. However, you all know we have to look at the bigger picture, not just the rosy month over month figure. First take a look at the number of active listings, 1410. This is the most number of active listings that have been on the market over the last year. New listings have come off of last months peak, but the sheer volume of properties both on the market, and coming to the market, is going to keep our inventory levels high. Year over year we've added 12.8% more listings for sale, from 1250 to 1410. We have an increased number of active listings, and sales velocity that's at best flat, at worst slowing. Year over year closed sales dipped from 144 to 138, a 4.2% dip. That's a bit scary.
If you just looked at average price per square foot you would really think our market is on fire! Month over month per square foot pricing rose by 19.7%. Year over year it rose an astonishing 35.3%. I can attribute increased per square foot pricing to a number of things, from what I see you can boil it down to a few pinpoints. First, I'm seeing more and more turn key buyers, and fewer that want to buy as low as possible and renovate. A good amount of the investor mentality has dissipated from segments of the market. Properties in the best condition are going to command a higher price per square foot. Second, I'm seeing a decent number of sales of smaller units. One bedroom condo's are going to sell at a higher price per square foot versus larger units. I'm not going to dig too deeply here because I do believe we'll see pricing fall back towards that $350 per square foot level, more than I believe pricing will hold the line above $400.
Now we get into the reason I didn't want to put too much weight into the per square foot pricing, take a look at the median sale price! Brutal dip on both a month over month and year over year chart. Month over month median home sale prices in Fort Lauderdale dipped 26.1%. Year over year pricing was off by 22.2%.
Inventory levels are very interesting. If we look at the first chart on this post you see a large number of listings, slow sales velocity, and a high number of new listings. Granted, we also see a decent number of pending sales. The question is how many of those 199 pending sales will close? If they all close we'll see inventory continue to trend down. If half of them close our inventory levels are going to sky rocket again. No matter which way you look at it, 10.2 months of inventory is good news for buyers, and bad news for sellers.
The number for days on market and sale price versus original list price seems to be 90. Listings are going to sit on the market for an average of 90 days before a sales contract is executed, and the property is likely going to sell for 90% of the list price. Both great pieces of data for buyer and sellers.
I'm kind of giving you guys the broad once over on this months post. Candace and I got married, and went to Turks and Caicos for a week. For those curious, of course we spent a day looking at real estate and investments in Turks and Caicos. Shockingly the returns are the same here in Fort Lauderdale that they are in those islands. I was hopeful that I'd find a developing country starving for capital which exhibited fantastic net returns, I was completely let down! Anyways, you'll hear from me again in a couple of weeks when I have March numbers.
As always, the disclaimer. Real Estate market report provided by Casey Prindle of Keller Williams Realty. This market report will cover the neighborhoods of: Rio Vista, Victoria Park, Downtown Fort Lauderdale, Fort Lauderdale Beach, Harbor Beach, Lauderdale Harbors, Sailboat Bend, Tarpon River, Croissant Park, Collee Hammock, Las Olas Isles, Lake Ridge, Wilton Manors, Coral Ridge, and Poinsettia Heights. Zip codes covered in this report will include 33301, 33304, 33305, 33315, and 33316. Data reviewed will be compiled by zip code and cover a 12 month period from April of 2014 through April of 2015. Data is taken from the South Florida MLS and provided by Trendgraphix. Property types include single family, condominiums, and townhouses.
I work as a Realtor in Southeast Fort Lauderdale. If you’re interested in buying or selling a home, condominium, or townhouse (townhome) in: Rio Vista, Victoria Park, Downtown Fort Lauderdale, Fort Lauderdale Beach, Sailboat Bend, Tarpon River, Croissant Park, Collee Hammock, Wilton Manors, Oakland Park, Poinsettia Heights, Coral Ridge, or Las Olas Isles, please feel free to contact me at (786)443-7203 or through my email email@example.com. I am a Realtor that works on Saturdays in order to accommodate those with busy schedules.
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