Home Prices in Fort Lauderdale April 2014
The number of homes listed for sale is up 11% year over year. The number of homes sold year over year is down 16.5%. However, median sales prices, as well as price per square foot are on the rise? Some interesting figures in this months Fort Lauderdale housing report.
As always, the disclaimer. 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, 33315, and 33316. Data reviewed will be compiled by zip code and cover a 12 month period from March of 2013 through March of 2014. Data is taken from the South Florida MLS and provided by Trendgraphix. Property types include single family, condominiums, and townhouses.
Year over year the average price per square foot is up by 5.6%. That's a modest increase year over year, and a normal growth trend. I keep pounding the drum and saying we can't have double digit increases, so I'm pretty happy with that year over year figure. Is there cause for concern because we're now in our third month of average per square foot price decline? I'm not sold on that idea. I think the market is finding a steady trading range. Look over the last 5 months, prices have been pretty steady.
I do see cause for concern in the median sales price figures. Year over year there's a 23% increase in median sales pricing. The month to month increase between February 2014 and March of 2014 was 18.8%. I always caution, Fort Lauderdale has areas of extreme affluence. There were 142 sales that took place in March of 2014 as recorded on the MLS. A few high dollar sales will quickly pull up the median sales number. I don't see that as being the case here. Right now if you're looking for a house in the $300,000 range, I'll tell you bluntly you may not like what you see. I believe the current median sales price number is a fair representation of our market right now. In the $400,000 price range there are some decent homes available, some decent condo's as well. Stray too far south of that number in the single family home market and you're going to bump into a number of "fixer uppers". Unaffordability is creeping into our market which makes me very, very nervous. Especially as interest rates can only be on their way up. It's too early in the recovery to shut out first time home buyers.
The pace of sales seems to be slowing. The pace of new listings accelerating. The result is going to be a swelling of inventory. Take a look at the graph below. The trend is clearly upwards. We keep going through peaks and valleys, but the end result is a relatively rapid rise in inventory. As always this will be price bracket specific, there's still little to no inventory in the under $200,000 market. I'm also seeing certain condominium buildings really taking off in terms of active listings. Some buildings have 10% of the available units for sale! Of course this could be a result of those that bought during the peak finally able to sell, albeit at a loss.
Same story month over month here. Listings are selling at 90% of their original listing price. For more than a year this has been the trend. As we see inventory grow, and sales slow, we will see longer days on market.
My opinion is that the writing is on the wall for sellers. If you were thinking of selling I'm imploring you to get off the sidelines and list sooner, rather than later. If we keep seeing inventory swell, it will keep getting more difficult for your listing to stand out. Condominiums could see an especially tough summer. Second home buyers gravitate towards condominiums, as those buyers go into hiding for a few months it stands to reason that we'll see fewer buyers around. If you've been considering selling your home please call or email me! Each home and condominium are different and require different strategies to sell.
Are you a buyer that's in need of financing? Get your pre approval letters squared away sooner rather than later. A rise in interest rates can hurt refinancing, but it rate rises can destroy home buying activity. Please understand how time sensitive low interest rates are. By all indications the window is closing on low rates. If you've been looking to buy get in touch with me, let's go see some houses!
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 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
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