Fort Lauderdale's Market Update - and prediction for fence sitters

By
Real Estate Agent with Keller Williams Realty Professionals BK694889

Sales of existing homes and condos in South Floridarose in January, though prices sank further. Ok, that makes sense with over 60% of the sales being distressed properties (please remember 40% are good old fashioned sales), these 60% are driving average sale prices down. But also please remember distressed refers to many aspects of the property. The condition, the location, the street, and possibly that people simply don't like the home, all can make it distressed. So the price reflects true value, and homes with lesser true value are driving the market, so average prices are lower, as long as properties with lower, distressed prices are out there driving the market.

Ok, that's all good buyers are buying ...unit volume is up...distressed properties will sooner or later be less of a percentage of the total and price will start to r____. I don't want to spill the beans yet.

Existing condo sales rose 81 percent across the state to last year. Now that's a number to be impressed by. Especially when you consider that many banks are still interpreting Fannie Mae guidelines with misguided rules than often make getting a mortgage on a condominium in Florida tantamount to winning gold as a bobsled team from Jamaica.  One of the most blatant of these misguided interpretations, is Fannie Mae considers a rental unit to be one that the purchaser bought with no intention of ever living in, and/or one which was financed with investor financing. However most banks ask associations, "How many units are currently rented?" During the winter months the response to this question can cause many condominiums to get into a position where mortgages are hard to come by. Fannie Mae guidelines are not meant to national edicts, they are meant to be guidelines.  One point to note Fannie Mae issues their seal of approval on new construction condos, but not on existing units. Existing units are subject to bank interpretation of the guidelines.

Fort Lauderdale Real Estate prices, on existing homes, were up 5 percent in January, to 492 from 467 a year earlier. The median price, however, fell 6 percent, to $180,000 from $191,000. Lets see... if 60% of the sales were distressed and prices only fell 6%, this would indicated we are leveling off and as these distressed homes start to disappear prices may actually begin to do something other than fall.

Fort Lauderdale Condominiumsales were up 47 percent, to 780 from 531. The median price fell 18 percent, to $69,500 from $85,000. Oh my prices fell 18% that's alarming. Not really the median price of $69,500 let be real it isn't what you think it is. I recently sold a foreclosure near Fort Lauderdale Beach with a view of the ocean in an older building, the condo needed some work and the buyers were lined up at $189,000. Follow this link to our MLS search if you are curious what $69,000 buys, Fort Lauderdale Condos.

So lets summarize, sales are increasing, prices are still dropping (not for long), interest rates are still very low, and inventory is trending lower, so if you are a buyer sitting on the fence. Ok here we go the as prices start to rise that fence is going to hurt.

On that note its time to go meet a buyer, have a great day.

 

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Rainmaker
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KARIN SMITH
SMITH REALTY GROUP - Slidell, LA
BROKER/REALTOR

Great news for your market!  Things are picking up in my market as well, isn't it grand!  Now is the time to buy!!

-Karin

Feb 28, 2010 12:16 AM #1
Rainer
26,646
Eric Miller
Keller Williams Realty Professionals - Fort Lauderdale, FL
Award Winning Fort Lauderdale Real Estate

We just spent a week in the New orleans at Keller Willaims Family Reunion, the city looks great and to "quote our keynote speaker, "there is Joy is New orleans again", congradulations.

Feb 28, 2010 12:20 AM #2
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Rainer
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Eric Miller

Award Winning Fort Lauderdale Real Estate
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