Fort Lauderdale Home Prices September 2016
If you're on the sell side of the market, you may finally be seeing a little reprieve coming your way! It looks like things are leveling out in terms of inventory and listings which should help sellers a bit. Of course I have some good news for buyers also! Let's take a look at the data.
Those that read this blog regularly know that sellers have been plagued by a complete and total over supply of inventory for sale. The supply seemed never ending 5 months ago when we saw more than 400 new listings come to market in a single month. The writing was on the wall for sellers who were priced over the market, you weren't going to sell, there's just too much supply. I have seen a large number of withdrawn and cancelled listings coming through the MLS. That signals that sellers listed their properties at inflated prices, had very little volume in terms of showings, likely zero offers, and decided to pull their home off the market. Look if you're a seller you're not out of the woods yet. Year over year there's been in increase of 17.1% of new listings coming to market (from 1,154 up to 1,351). We still have too many listings on the market to favor a seller, but here's why I see some hope for you. We're coming off the highs we saw a few months ago in terms of total listings, and new listings coming to market monthly. Take note of the red line, pending sales. It's moving upwards which is a leading indicator that we're looking good for a higher total number of closings next month. The obvious downside here is that the total number of sales, which is really what counts, is down 15.1% year over year (from 159 down to 135).
There isn't much bad to see for buyers or sellers in the average price per square foot slides. I've said time and again the market seems to be comfortable around the $350 a foot range, and I'm sticking to that. For those buyers looking for single family waterfront, the number spikes to $507 a square foot in the covered zip codes. Waterfront condo's came in at $402 a foot.
Median home pricing I'm not going to spend a ton of time on here. A basic recap would be that a large number of million dollar plus sales can swing median pricing way up. There were only 16 sales in the million dollar plus range across all property types in the zip codes I cover. We've been in the mid to high 20's in terms of million dollar plus sales monthly. The reason I bring this up is because it shows me that in the absence of a large volume of high dollar sales, the uptick in price can be attributed to more purchases in the mid tiered range and fewer on the low side. Just some food for thought there.
Are the months of available inventory leveling off? If you match this slide up with the first one, I believe you can conclude that our inventory levels should be relatively flat going into next month. If you're on the buy side you need to take note of the first slide, this one, and the one that follows. I do see your window to purchase at the most competitive terms could be closing. We have the number of available listings declining month over month. Flat sales month over month. Less new listings coming to market month over month. Months of inventory flat over the last two months. If you're a buyer you're still in the drivers seat without a doubt, however, it won't stay that way forever and this month could be signaling the turning point. In other words, get off the sidelines if you're waiting for the best time to jump into the market!
Now isn't this fascinating. Average days on market has increased from 89 last year, to 101. That's an increase of 13.5% year over year. This time last year properties were selling for 92% of their original asking price, they're now selling for 84% of their original asking price. That's an 8.7% swing year over year and absolutely something to take note of! I was showing a listing yesterday and an agent walked in with a client, asked how long the property has been on the market, I said "21 days". The agent responds "Oh wow why so long?" Don't be that agent (I know a lot of your read this blog I can tell by your subscribed email addresses!), and don't be that buyer, be smarter than that. Understand days on market. The average number of days on market right now in the zip codes I cover is 101. For those unfamiliar with that this means I'll quickly explain. This is the time a listing stays active on the MLS, it does not include the number of days it takes to close (this can be 45 days or more on financed deals). This is why I keep setting expectations with sellers during listing appointments, it's likely that you won't close on the sale of your home until 6 months from the day you list it. That's our market right now, I understand you're reading about inventory shortages all over the country, but that's not what's happening here right now.
The 84% of original list price is also something to discuss. When I see 101 days on market and 84% of listing price I see this scenario happening often. Agent takes a listing at an inflated price and tells the seller if the property does not sell in 30 days they can do a price reduction. This allows the agent to lock in the client and set them up in the future for the price they believe the property will actually sell for. Here's the problem, the first 3 weeks a property is on the market is when you get most of the action in terms of showings. You want to be priced well out of the gate, not 90 days down the line when buyers will feel embolden to submit offers below market. I'm seeing this relatively often right now. Just a caution to sellers.
I represent a number of owners in Nu River, Waverly, Watergarden, Las Olas River House, Las Olas Grand, 350 Las Olas, and Symphony, who are all currently wrestling with the same issue, vacancy! Before all the buildings were built Downtown you were likely to see 2 or 3 listings for lease at a time in the buildings I just mentioned. Then The Edge, The Manor, Elan 16Forty, Amaray, New River Yacht Club, and the soon to be finished Icon all came into the picture. This does not even count all the other buildings which are proposed or ready to break ground that will provide rentals. The outcome is this, there are now 19 active rental listings in Nu River. There are 19 active rental listings in Symphony. There are 15 active rental listings in the Waverly. There are 12 active rental listings in the WaterGarden. There are 10 listed for rent in the River House! Here's my point. A lot of people bought for investment during the downturn. This was done prior to all of the new construction rental supply coming to market. As the supply has gone up, it's put downward pressure on rental rates in a number of buildings close to Downtown, and greatly increased vacancy time. If you did buy for investment during the downturn, it may be time to consider taking the profit off the table now. Rental supply is only going to increase going forwards. The flip side to all of this, there's also no new construction condo building going on in Downtown.
Thinking of buying of selling? Now's a good time to talk to me!
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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