Home Sales Up In Nearly Every Price Range

The National Association of Realtors’ most recent Existing Home Sales Report revealed that home sales were up rather dramatically over last year in five of the six price ranges they measure.

Only those homes priced under $100,000 showed a decline (-4.6%). The decline in this price range points to the lower inventory of distressed properties available for sale and speaks to the strength of the market.

Just Listed in Ft Lauderdale	Under $100,000	Under $200,000
Under $300,000	Under $400,000	Under $500,000
Under $600,000	Under $700,000	Under $800,000
Under $900,000	Under a Million	Luxury Homes in Ft Lauderdale

Every other category showed a minimum increase of at least 4.6%, with sales in the $250,000- $500,000 range up 15.2%!

Here is the breakdown:

What does that mean to you if you are selling?

Houses are definitely selling. If your house has been on the market for any length of time and has not yet sold, perhaps it is time to sit with your agent and see if it is priced appropriately to compete in today’s market.

When Selling Your Home you must think "Strategic" pricing of your home based on the looks of your home and the competition of homes for sale, plus knowing what Sold in your neighborhood.  As we like to say it's a beauty contest and a price war.

(Light Green Lines Represent Active Homes for Sale, Dark Green are the Sold Homes and the Red Line are homes under contract that haven't sold yet.)

In Broward County Florida there are about 4,852 Active Homes for Sale.  On Average only only 1200-1400 of those homes will actually sell.  This is just for Single Family Homes in South Florida particularly Broward County area.  That means in Broward county only 25% of homes for sale actually sell.  And the story changes per price point.

As a Realtor in South Florida I keep current with the market stats and information and I can help you come up with a strategic plan to sell your home for top dollar and in the least amount of time.  Call Jay Cermak Top Fort Lauderdale Real Estate Agent with The Edwards Real Estate Group at 954.235.3589 today!

Yes, Home Prices Are Rising. No, a New Housing Bubble is NOT Forming

We recently reported that home prices are continuing to rise across most of the nation. This has created concern in some pundits that a housing bubble, like we saw ten years ago, is forming again. We want to explain why these concerns are unfounded.

The current increase in home values can be easily explained by the theory of supply and demand. Right now, the number of families looking to purchase a home is greater than the supply of homes on the market.

Just Listed in Ft Lauderdale	Under $100,000	Under $200,000
Under $300,000	Under $400,000	Under $500,000
Under $600,000	Under $700,000	Under $800,000
Under $900,000	Under a Million	Luxury Homes in Ft Lauderdale

Here is a chart that explains how the months’ supply of housing inventory impacts home values:

According to the latest Existing Home Sales Report from the National Association of Realtors, there is currently a four-month supply of inventory. That puts us in the blue section of the above graphic. Home prices should be appreciating.

The difference in 2006…

A decade ago, the demand for housing was artificially boosted by lending standards that were far too lenient. Today, the strength of the demand for housing is legitimate, as lending standards are nowhere near what they were a decade ago.

For proof of this, let’s look at a graph of the Mortgage Bankers’ Association’s Mortgage Credit Availability Index:

The higher the number, the easier it was to get a mortgage. We can see that from June 2005 to June 2007, mortgage standards were much more lenient than they have been over the last nine years.

Bottom Line

Today’s price increases, unlike those a decade ago, are the result of qualified buyer demand exceeding the current inventory of homes available for sale. Once the supply increases, prices will level out.

If you are thinking about selling now IS the best time, because once more inventory gets out on the market the prices will level off...meaning you may not get nearly as much $$ Money for your home when it levels out because of more competition.  

If you are considering selling your Fort Lauderdale Home or selling anyhome in South Florida contact Jay Cermak Top Fort Lauderdale Real Estate Agent with The Edwards Real Estate Group at Keller Williams Realty.  Call or Text 954.235.3589 and schedule a Real Estate consultation today!