Home Prices in Fort Lauderdale July 2015
I'm going to lead off with a surprise, but not a very good one for the bulls out there. Year over year price per square foot sales are down, median home pricing is down, and the total number of sales are down. Not exactly what I was expecting to write this month. If you're a seller you might want to stop reading this months post now.
Year over year total number of sales show a 16.2% decline. The only real silver lining I can find here is that pending sales are up 18.7% year over year. I'm seeing more and more financed buyers enter the market. Logically speaking a financed buyer will make a home sit in pending longer than a cash buyer who closes quickly. Not the greatest silver lining or comforting thought for sellers, but a thought nonetheless.
I drilled down a couple of numbers that some may find interesting, or terrifying. When you filter to $1 million and above you'll find 39 sales that happened in June of 2014, and 19 sales that happened in June of 2015. That's a 51.3% year over year decline. There are 359 active listings priced over $1 million, only 19 sold last month. That's staggering. It translates through to 18.9 months of supply on the high end.
Conversely if you filter up to $400,000 you'll see that of the 166 total sales last month, 97 were priced below $400,000. There are 428 actively listed properties priced below $400,000, or a slim 4.4 months of inventory. I pulled these out to illustrate what segment of the market is moving, and what segment is a bit stuck.
Year over year the per square foot pricing is down 11.9%. That's a pretty big figure. I dug in a bit and found a couple of interesting tidbits to share. Single family waterfront per square foot pricing is up 19% year over year. Single family non waterfront property pricing is down by a slim margin of 1.9% year over year.
Overall per square foot pricing is down 11.9% year over year. We're a bit below the average for the year, which sits at $335 a foot. A dip below $300 would be a big step back, but we'll see what next month brings. I still do believe we'll see the per square foot number take a large bounce upwards in the 4th quarter.
Median pricing is down 18.9% year over year. Again I am seeing more financed buyers enter the market. Most of these purchases are going to be on the lower end. As I noted earlier the heaviest activity right now is on the least expensive properties. It's no shock that median pricing would fall if the most active segment of the market is on the lowest end, but it's still a pretty frightening number to look at. I had been looking to get closer to $400,000 as a median price by the end of the year. If the higher end doesn't sop up some inventory, we're going to be stuck with these lower median figures for a while.
We seem to be settling somewhere around 7 months of inventory. Buyers this gives you a slight advantage. A neutral market has 6 months of inventory. A sellers market has less than 6 months of inventory, and a buyers market has over 6 months of inventory. As noted earlier, inventory levels are going to swing wildly based on price point. It's a sellers market on the low end, buyers market on the higher end. Last year at this time we were in a sellers market, now we've swung towards a buyers market.
Day on market really isn't swinging around much as you can see. Properties are selling for roughly 90% of original list price again and again. No real news here.
I'm more and more curious about what this fall and winter are going to bring. Properties not moving on the higher end are really dragging our market down here locally when you view it as a whole. On the lower end I'm seeing buyers who just want a home that's reasonably priced. They're not nervous about doing work over time to fix the house up, which is a bit of a swing from a few years ago. The first time financed buyer is really beginning to make a return to the market from what I'm seeing. On the lower end that's really welcome news as large scale investors entering the single family home market have completely dried up over the last 12 months.
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 April of 2014 through April of 2015. 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