Home Prices in Fort Lauderdale October 2013
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, and Las Olas Isles. Zip codes covered in this report will include 33301, 33304, 33316, and 33315. Data reviewed will be compiled by zip code and cover a 12 month period from September of 2012 through September of 2013. Data is taken from the South Florida MLS and provided by Trendgraphix.
First thing to point out in the average price per square foot, is this was based on only 97 sales. This means the data is rather thin as we're 25-30% off of prior month's transactional volume. That being said, we're clearly seeing a trend line moving down. Earlier this year I had been writing that prices were running up too quickly and I was nervous about a bubble forming. Prices taking a dip like this would indicate that we're reached a point in the market where buyers are pulling back on prices they're willing to pay. I don't want to focus too much on the short term 10% month over month drop in prices. What I'd like to focus on is the almost flat year to year pricing. We were at $241 per square foot in September of 2012 and are at $248 one year later. The question is, are the sharp mid year price spikes ready for a repeat, or has the market decided the comfortable trading range is between $240 and $295 per square foot?
Median sale prices really do appear to have leveled out. As always the data will apply to residential sale transactions which include apartments, condominiums, co-ops, single family homes, townhomes. This will also be specific to the following zip codes in Fort Lauderdale; 33301, 33304, 33315, 33316. Year over year we see a very healthy, though aggressive, median price increase of 21% when comparing September of 2012 to September of 2013. If you aggregate the buyers I deal with, that are not looking for properties priced over $1 million, I keep hearing the same sentiment echoed. They are looking to stay below $400,000. That number seems to be pretty universal lately and I think the median sales price data really reflects that. Look at the cluster or pricing from $334,000 to $365,000.
Are buyers drying up, or are more sellers listing their homes? Let's first address the uniqueness of the area I cover. There are homes of incredible value that can easily skew the data around here. A single large dollar volume sale can really move the data on a month when few sales take place. I posted a few days about waterfront home prices in Fort Lauderdale. If you haven't already, take a look at that post, the data is really interesting. What it really shows us, in terms of inventory, is that there is a huge supply of waterfront homes currently on the market. Close to a 16 month supply! A quick reminder, 6 months is a healthy supply which favors neither buyers nor sellers. So the high end is really going to skew the data for the whole area. That being said, you can't ignore a spike like this in inventory. There were 100 sales in September of 2012, there were 97 sales in September of 2013. So you can't blame the spike on slowing year over year sales. What the data tells me is more sellers are now feeling the market has run up enough that they're ready to list their home for sale.
As always a note of caution, a home priced below $300,000 isn't going to sit on the market too long, there's a large and healthy pool of buyers in that price range. Conversely, a listing of $5 million is going to sit for several month's, if not years, before it will sell. The buying pool is much smaller in the higher dollar ranges, logically. If you broke down month's of inventory by dollar bracket you would find less than 30 days on inventory on the lower end of the market. I've written those last few statements for several months on this report and I feel it needed to be stated again as it's very important in understanding our supply numbers locally.
From last year this time compared to now we see a rise in inventory of 9.5%. I'd really like to keep the supply number rising. Buyers have been starved for inventory lately. It would be my opinion that there is a lot of money sitting on the sidelines right now. We need to get buyers off the bench and into the game again!
Days on market seems to be averaging out around 90 days. Again, this is going to fluctuate by price point and clearly the higher end is going to bring the average up as those homes rarely sell quickly. Homes are sitting on the market for a shorter period of time than they were in September of 2012. The 17% decrease of days on market is healthy as it shows sellers pricing their properties well will sell. I will again state the following, one trend we don't see changing is that buyers continue to receive over 90% of their listing price on transactions. Those buyers trying to offer 30% below listing price rarely, if ever succeed. Most commonly it just annoys a seller who is seeing offers close to asking price.
Townhomes, townhouses, and loft spaces oh my! On the buying side I'm seeing a ton of interest in these property types. With loft spaces in Fort Lauderdale in short supply, buyers have few options. Thankfully those options are in really well built complex's! Townhomes are always a favorite of buyers and investors alike. There's some great product available in Victoria Park and Collee Hammock right now. For a buyer looking above $1 million I have some great pre construction homes available in Rio Vista that hold great future value.
On the listing side, if you have an older home in need of repair, get it listed! Right now there is a small army of buyers looking to buy something that's in need of repair so they can fix it up. I'm not talking about the fix and flip crowd which will need you to sell to them well below market pricing. I'm talking about the first time home buyer and discerning buyer looking to renovate before occupying a property. If you're considering listing your Fort Lauderdale home for sale give me a call and I'd be happy to give you an honest opinion of your homes market value.
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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, Harbor Beach, Lauderdale Harbors, Sailboat Bend, Tarpon River, Croissant Park, Collee Hammock, Seven Isles, Nurmi Isles, Idlewyld, 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 to accommodate those with busy schedules.
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Written By Casey Prindle