Fort Lauderdale Real Estate Market Update July 2019
Number of homes for sale and sold in Fort Lauderdale July 2019
All right everybody hope we had a good month as always. For those of you that have been with me for a while, if you'll remember this time last year, there were all the pre-construction sales loaded in on this month and it skewed the data. It made this month look really funky for
the whole year, and here we are a year later with that same funky slide. So what
I'm going to show you is just like last year, it’s going to be very brief. I think I'll just answer some questions that I've gotten this month instead of doing too much on these slides, because the
year-over-year data is shot. So let's pull it up and take a look at what I mean. If you'll remember Auberge and the Gale, and I believe there was another project that was also mixed into it, loaded a bunch of pre-construction sales this month into last year. So we see that 572 sale number but 151 of those units were pre-construction that had been sold over a few year period, so take those out. The real number there should have been 421. So now if you look year-over-year there would have been 421 sales in June 2018, down to 329 sales in June 2019. So we're really down 92 sales, or off by 22%, which as you know, is a pretty big number to be off year-over-year. But as I said the slides going to be really deceiving. I do think if we look up and we see the amount of listings for sale we've gone from 2,778 down to where we are now 2,391 and I’m definitely happy to see that. You know the lower we can get the amount of stuff out there for sale, I think the better we're going to be for sellers all the way around. Of course the inverse is, if you're a
buyer right now there's a lot out there and you know you have a good amount to choose from. So that's the flip side of the coin here. As I said let's take this slide with a little bit of a grain of salt, and kind of take it in stride. It's not really going to be good for much year-over-year. Like I said I do think it's important when you strip out those pre-construction sales to know that the true number, we are down 22% year-over-year. It's not as drastic as this slide makes it look, but we're still down here.
Average price per square foot of home sales in Fort Lauderdale July 2019
If we go over to price per square foot, you know look that 361 number it's kind of impressive right? Pretty good. If you’ve been with me for a while you know, don't put a whole lot of stock in this. That is likely coming from what we've been saying for the last five six months on these videos right? The lower dollar sales are really moving. Lower dollar sales tend to have a smaller area, the price per square foot gets pushed a bit higher. So I think that's a main driver behind it. The other thing is we had some healthy waterfront sales, and those high dollar waterfront sales will push that average price per square foot up.
Median Home sale prices in Fort Lauderdale July 2019
If you look over at median sales price here. Again, knock out that 449, that's not real, but look at that, 360! Again what we've been saying, we're kind of right in the range, right where we've been all year. So again, something to look at, but we're going to breeze right through it.
Average number of days it takes to sell a home in Fort Lauderdale July 2019
Days on market. Sale price versus original list price. So again, kind of interesting right? That 61 number was fake because there were a lot of pre-construction units that got loaded in with zero days on market so that got dragged way down to where it shouldn't be. But we do see 109 days which is pushing up. Not really the direction that we want to go, especially if you're a seller. What you do want to see if you're a buyer, that 84 percent of sale price to original listing price. What that likely means is that people had properties overpriced when they threw them on the market, they did price reductions down to where they should be, and somebody sold a couple of percentage points off of the reduced asking price. So it's not a likely scenario that somebody listed their property, somebody offered them 16% discount to market, and the seller was so excited that they just took it. It was probably that they just ticked down over time and they probably got close to where they should have been priced originally. So again, the importance of just pricing correctly from the start and things are a lot better off for you.
Months of Fort Lauderdale housing inventory July 2019
Last thing we're going to look at, months of inventory. There we are creeping up to 7.3. Of course that's just because we had a slower sales month. We’ve been kind of trending down, but my gut feeling is, look things aren't exactly on fire around here right now unless you're in a lower dollar price point. If you are in a lower dollar price point, great time if you're a buyer, really get competitive. If you're a seller, really get aggressive on your pricing there and deals are happening.
So let's just skip over to a couple of questions that I got this month. The first, a number of you asked me. Do I think it's a better ideato buy a single-family home for investment or a condo for investment? My thought is, look if you get a single-family house and you're in South Florida, you're redoing that roof pretty often. Or a lot more often than a lot of other places around the country. So know that if you buy a single-family home, and you're purchasing it with a roof that's twelve years old or so, you're going to have to replace that in the near future and it's likely to run you in excess of ten grand pretty quickly. So you got a budget that in. On a condo the worst you may get is some kind of an assessment that gets thrown at you, but you really don't have a lot to do right? You may need to change an AC carrier at some point, do appliances at some point, but that's really the the extent of what you're going to have to do. A single-family home you may have to do a lot more repair. So it's not weather I think one is better than the other, it's just if you don't have the money set aside for expenses, just look at a condo. It's going to be much easier. It's going to be more predictable. Single-family homes there's a lot of up charging you can do. For example, if you have a single-family home and you want to rent to a family with a large dog, there's not a whole lot of places families with large dogs can go. It's really hard to find a landlord that wants to take in a large dog, so you can up charge for that. You can charge cleaning fees up front. You don't have to play by HOA rules if you get your own house.
Another question people ask me is where do I find value? Where do I see prices running up right now. Look we live in Riverland Village. We sold our house out east and moved over here. This market you see houses flying off the shelf around here. So I think it's good for a lot of reasons, it's good for first-time home buyers starter homes, to some extent it's still good for investors. So if you haven't looked into Riverland, take a look. I think I'll put a link in the this month's newsletter, you know the email that you get, and give you a link to some of the properties in Riverland. Especially if you're looking for waterfront property in Fort Lauderdale, the least expensive waterfront property you can find is in Lauderdale Isles on the south end of Riverland.
Last thing people are asking me, is it still a cash market? Do I still need to buy with cash? Should I leverage? At this point I almost think it's criminal if you're not leveraging. The interest rates are so
low that you’ve got to take advantage of it. That being said, if you're in a really competitive deal, you may have to buy the property for cash, and then circle around and do a cash out refi. It’s especially true in multi families right now.
Just kind of some some thoughts, some questions that I had. If you guys have any please email me.