Home Prices in Fort Lauderdale January 2015
The total number of sales spiked last month! That spike made an enormous dent in available inventory. This month I'd like to look a little deeper into the numbers behind the numbers. As always, there were some surprises, some not so surprises, and some what in the world, numbers this month.
December of 2013 there were 173 sales for the month. December of 2014 there were 181 sales for the month. A somewhat paltry increase of 4.6%. The real story is the move from 118 sales in November of 2013, to 181 sales in December of 2014, that's an astonishing 53.4% month over month increase. I was busy all through December, it looks like other Realtors were as well. That's a very encouraging sign.
I truly believe we've found a comfortable trading range in per square foot pricing. There's really a tight top and bottom of pricing over the last 12 months. I do believe we'll continue to keep trading in that range through the first quarter. That being said, once the new construction projects on the beach start reporting numbers they're going to bring up these averages rather quickly. Those projects will undoubtedly increase overall average price per square foot pricing for the whole area.
Median Pricing took a huge leap upwards when we look at month over month. November of 2014 reflected median pricing of $314, December of 2014 reflected a median price of $381. For those keeping score that's a 21.3% increase. I noted last month I believed the $314 was an anomaly. I believe that's the truth. The bottom median pricing I believe we'll see going forward will likely fall north of $350,000. Year over year we saw 3% growth in median pricing. That's a nice, stable, rationale increase.
We've arrived at the data I really want to dig into a bit deeper. Let's get away from the slide below for a moment and look at inventory by bracket. Homes priced over $1 million have 12.8 months of supply currently (down from 24.3 months in October of 2014). Homes priced between $500,000 and $999,999 have 9.5 months of supply (down from 13.9 months in November of 2014). Homes priced between $250,000 and $499,999 have 4.6 months of supply (down from 8.8 months in November of 2014). Homes priced between $1 and $249,999 have 4 months of supply (down from 4.9 months of supply in November of 2014). What I want to draw your attention to are the $1 million dollar plus properties. Over a 60 day span, inventory of homes priced over $1 million was cut in half. That huge change at the top has carried the overall inventory numbers down. We still have very tight supply at prices below $500,000.
As for this most recent period, there was a 36.8% drop in inventory between November of 2014 and December of 2014. Year over year there was actually an 8.5% increase in inventory.
Days on market rose 44% month over month. That's very interesting. What that tells me is a lot of the properties that were sitting on the market for a prolonged period of time went from active to pending sale. Again and again though we really see the same thing on this graph. Properties selling at or around 90 days, for 90% of their original listing price.
The doom and gloom I was depicting for sellers hasn't come to fruition. The bottom of the market continues to come up. It's tougher and tougher to find well prices properties in the lower dollar ranges, which makes you wonder when first time home buyers will be able to return to the market. Typically first time home buyers make up a huge portion of overall sales, they are largely absent so far in this recovery. The fear is that prices rise too quickly for first time home buyers to enter the market at some point, that's not a good thing. Let's hope for the sake of the whole housing market we can figure out how to engage those first time home buyers before prices pass them by.
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 December of 2013 through December of 2014. 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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Written By Casey Prindle