Home Prices in Fort Lauderdale November 2015
This month just kind of seemed like a non event. Here are a couple of my observations about the Fort Lauderdale housing market at the moment, moderately priced homes are attracting more attention that higher price points, inventory seems to keep appearing, and financing deals are really becoming much more common than they were this time last year. This is to say I feel the market changing a bit. I'm seeing fewer investors on the residential side, and more end users. Good news for Fort Lauderdale as a whole, not the greatest news if you're trying to unload a house, or condo, to an investor.
For sale listings are up 1.2% year over year. Again this is really just illustrating that our market is pretty flat year over year. New listings are down 8.7% year over year. That surprises me a bit as I keep seeing more and more inventory come online. One side note, foreclosures (REO) has all but disappeared from our market, last year there still were a number of them coming to market. This could account for a least part of that 8.7% drop. The number of properties sold is up 3% year over year, but down 21% from last month. Last month wasn't a red hot month, so the drop off of 21% is concerning. I do feel that this month there are a lot more buyers around as my listings have seen a serious uptick in showings. I would venture to guess that the November numbers will get us back to that 170- 190 total sales number, based on what I'm seeing.
Per square foot prices are up 11.4% from last month. The bigger eye popper is the year over year figure where we made a huge leap up 17.8%. If you look out over the course of the year $365 a foot is on the higher side of where pricing has been. This is to say I'm not expecting that this starts a new trend, and I'm not sold on that figure holding up. From a charting perspective (for my technical stock traders) it does look like a V pattern has emerged beginning with the 391. Again, I think we're going to hit resistance and push back down. Sorry to be a party pooper.
Meidan prices are up 4% year over year. That's where I really see market headed, low single digit increases. I keep beating this drum, and at this point I'm going to stretch that prediction out through at least the middle of 2016. I really don't see any catalyst coming in that's going to shoot prices up. We're now trading roughly 20% below the peak of the market. I think we can all still agree that we should be trading below peak prices for another few years. Again, this all leads me to the conclusion that we're going to be flat or see small increases in pricing over the next several months when averaged out.
Months of inventory is up 33.2% from last month, down 1.1% year over year. If I didn't look at the numbers and just went off my gut, or what I'm seeing, I would have said inventory is up over the last several months. Everyday there's a lot coming to market. When you weed through it you find a lot of junk. By junk I mean listing price versus what a property could reasonably sell for. This is going to lead to excess inventory. Throw in a dash of buyers from foreign countries that have had their own currencies devalued by so much that it no longer makes sense to buy in the US, and investors slowing down their residential purchases, and you're going to end up with swelled inventory. There are just fewer buyers around.
I feel like this slide is kind of the same thing month in and out. Days on market has risen 5.2% year over year. It's something to take note of, but again, it's by price point. It's not in any way abnormal for higher priced properties to sit on the market for a year or more. This is always going to throw our numbers off in Fort Lauderdale. Lower dollar properties are seeing marketing timing that's much shorter than the graph below.
A lot of my readers don't live in Fort Lauderdale. For those that don't you miss out on seeing a lot of the changes happening here almost weekly. If you drove down Federal Highway between Broward Boulevard and Sunrise today, you would see structures in the process of going up at a seemingly unsustainable pace. I was one of those people that was saying, we're building too much before people have moved here (I said that around the time Elan, The Manor, and The Edge were all breaking ground). However, just as quickly as the buildings have been built, people have moved to Fort Lauderdale. What that's translated to, or what I see daily, are more and more first time home buyers looking for homes. Investors need to take note of this. Again, cash deals are drying up on the residential side. Just about every listing I sell has sold with financing underneath it over the last 6 months.
I say this because financing goes both ways. Man I'm going to regret what I'm about to write because it's going to complicate my transactions. Investors, just like you're seeing buyers obtain financing to purchase homes, banks have begun lending to you as well. As cap rates compress often times the only way a deal makes sense is if you're running financing under it. This has really changed transactions down here over the last several 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