Home Prices in Fort Lauderdale January 2014
Now that we're through all of the year end wrap up figures, let's get back to the monthly post about overall home prices in Fort Lauderdale. This will differ from the recent year end review posts because I will aggregate all property types and area's into a single post. This post is also significant as it will be the first where I incorporate data from zip code 33305! Zip code 33305 is going to cover Coral Ridge, Poinsettia Heights, Wilton Manors, and a segment of Fort Lauderdale Beach. This monthly posting keeps track of market data over the entire area I cover. It's meant to give you an overview and allow us to spot trends in the larger market area. Should you want to isolate data in specific neighborhoods of Fort Lauderdale then please contact me.
Real Estate market report provided by Casey Prindle of Esslinger Wooten and Maxwell. 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, 33316, and 33315. Data reviewed will be compiled by zip code and cover a 12 month period from December of 2012 through December of 2013. Data is taken from the South Florida MLS and provided by Trendgraphix.
Please keep in mind the per square foot data below is an aggregate. I've combine single family homes, townhomes, and condominiums together. I haven't filtered for waterfront, or non waterfront. This gives a nice baseline overview. The biggest takeaway, in my opinion, should be the pricing trends we see. May of 2013 prices seemed to have peaked. However, it looks like we've been running back up towards those highs recently. My opinion is that a lot of this is due to limited inventory, but we'll test that theory farther down this post.
I had to do this math a few times and it still seems unbelievable to me. If you look at the $260,000 median price, and then at the $370,000 median pricing you'd know there's been an enormous run up. Mathematically there was a 42% increase in pricing between those numbers. That's astonishing. Numbers like that are certainly not sustainable over the long term.
Often we see real estate prices run up when inventory is low. Pricing is always a function of supply and demand. As we see inventory begin to dip at the end of the year, we also saw prices rise a bit. Inventory levels are incredibly important to keep an eye on. Six months of supply is considered to favor neither buyers or sellers. While it's nice we're coming off 4 and 5 month supply levels that we saw during the summer, more inventory is needed to keep prices rationale. My biggest fear is a sharp run up in prices due to lack of supply. It could lead to a large pricing decline when inventory inevitably get's listed.
Days on market is something I like to keep an eye on, but the sales price versus original price data is more important. This graph really has to do with how well sellers are gauging the market. If you see long days on market, and significantly lower sales prices versus original prices, then sellers were pricing too high. The data shows that homes are selling at roughly 90% of their listing price, and have for the bulk of the year.
This is the first time I've added in zip code 33305. We've obviously added a lot more data into the monthly equation. It was logical to do so. The larger baseline should give us plenty of data to establish reliable averages. I continue to hope for more inventory, and a more gradual pricing run up. I've been noticing that the bidding wars are dying down. Buyers seem to be more patient now (especially my buyers!). This time last year I felt like buyers weren't buying what they really wanted, but what was available. If you're a buyer you can replace limited supply with increased patience. I'm also noticing that sellers are preparing their homes for sale more than over the last year. I saw an awful lot of homes priced at the top of the market in their respective price brackets, that were not prepared for sale. From a lack of curb appeal, to cluttered homes. The recent sprucing up of properties by sellers would indicate that sellers are beginning to feel a slight squeeze.
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, Poinsettia Heights, Coral Ridge, or Las Olas Isles, please feel free to contact me at (786)443-7203 or through my email firstname.lastname@example.org. I am a Realtor that works on Saturdays to accommodate those with busy schedules.
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Written By Casey Prindle