By Sue Weaver, Trulia
For buyers getting into the Fort Lauderdale, Florida housing market, it may seem like trying to jump into a car moving at high speeds. Low inventory, competition from cash investors, and qualifying for a mortgage are obstacles to home ownership, especially for buyers in Fort Lauderdale and other Florida coastal communities. However, relief maybe on the way according to a recent article by Trulia “Breaking Stride – America’s Fastest Moving Housing Markets Slowing Down.”
The article explains why homes are coming off the market faster at a national level than a year ago. In fact, 66.6 percent of homes were still on the market after the 30 days between March 6th and April 6th of this year compared to 67.8 percent for the same timeframe in 2015. Conversely, for coastal markets that started to rebound in late 2012 into 2013, their inventories are increasing. Florida coastal towns account for five of the 10 markets that slowed the most between 2015 and 2016, with slightly better inventory than last year.
| Florida Coastal Slowing Housing Markets | |||||
| # | U.S. Metro | Median Home Value, April 2016 | % of homes still for sale after one month April 2016 | % of homes still for sale after one month April 2015 | Percentage Point difference in share still for sale, 2016 vs 2015 |
| 1 | Fort Lauderdale, FL | $210,000 | 69.6% | 67.1% | 2.5 points |
| 2 | West Palm Beach, FL | $213,050 | 72.2% | 70.0% | 2.2 points |
| 3 | Cape Coral-Fort Myers, FL | $214,900 | 72.0% | 67.9% | 4.1 points |
| 4 | North Port-Sarasota-Bradenton, FL | $239,000 | 72.4% | 67.8% | 4.6 points |
| 5 | Miami, FL | $250,000 | 75.4% | 70.8% | 4.3 points |
| Note: Among the 100 largest U.S. metros. The one month shares and the difference are rounded to the nearest percentage point, and the difference was calculated before rounding; therefore, the rounded difference might not equal the difference between the rounded shares. | |||||
Fort Lauderdale remains the tightest of the Florida coastal markets. Fortunately, there is a silver lining. There isn’t as much competition from cash investors since median home values continue to rise. Luckily, Fort Lauderdale’s median home values are not rising as quickly as the other Florida coastal cities, and remain at an affordable $210,000 median sales price as of April 2016. Another contributor to this market slowdown could point to condominium developers, who are investing in Fort Lauderdale and increasing inventories. According to Trulia, the inventory of all home types in Fort Lauderdale increased 2.5 percent between 2015 and 2016 with 69.6 percent still on the market after 30 days compared to 67.1 percent in 2015.
If you are considering buying in Fort Lauderdale, there is no time like the present. Inventories are increasing, the median home value is still affordable, and interest rates are still relatively low. So contact Eric Miller at FortLauderdaleGroup.com to start your search today.
