Housing Market To “Spring Forward” This Year

Just like our clocks this weekend in the majority of the country, the housing market will soon “spring forward!” Similar to tension in a spring, the lack of inventory available for sale in the market right now is what is holding back the market.

Many potential sellers believe that waiting until Spring is in their best interest, and traditionally they would have been right.

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

Buyer demand has seasonality to it, which usually falls off in the winter months, especially in areas of the country impacted by arctic temperatures and conditions.

That hasn’t happened this year.

Demand for housing has remained strong as mortgage rates have remained near historic lows.

The National Association of Realtors (NAR) recently reported that the top 10 dates sellers listed their homes in 2015 all fell in April, May or June.

Those who act quickly and list now could benefit greatly from additional exposure to buyers prior to a flood of more competition coming to market in the next few months.

Bottom Line

If you are planning on selling your home in 2016, meet with a local real estate professional to evaluate the opportunities in your market.

Ready to sell your home in Fort Lauderdale?  Contact Jay Cermak Top Fort Lauderdale Real Estate Agent with The Edwards Real Estate Group.  Serving your South Florida and Fort Lauderdale Real Estate Needs!

Call or text 954.235.3589 and schedule a homeseller's consultation 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!

Put Your Housing Cost To Work For You!

There are many young people debating whether they should renew the lease on their apartment or sign a contract to purchase their first home. As we have said before, mortgage interest rates are still near historic lows and rents continue to rise.

Housing Cost & Net Worth

Whether you rent or buy, you have a monthly housing cost.

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

As a buyer, you are contributing to YOUR net worth.

Every mortgage payment is a form of what Harvard University’s Joint Center for Housing Studies calls “forced savings.”

“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”

The principal portion of your mortgage payment helps build your net worth through building the equity you have in your home.

As a renter, you are contributing to YOUR LANDLORD’S net worth.

Below is an example of the home equity that would be accrued over the course of the next five years if you had purchased a home in January; based on the results of the Home Price Expectation Survey.

In this example, simply by paying your mortgage, you would have increased your net worth by over $44,000!

Bottom Line

Use your monthly housing cost to your advantage! Meet with a local real estate professional who can explain the opportunities available in your market.

Contact Jay Cermak Top Fort Lauderdale Real Estate Agent with The Edwards Real Estate Group at 954.235.3589 and schedule a Homebuyer's Consultation today!  

Learn the home buying process, conduct a needs analysis to determine what you need in a home and we will connect you with a mortgage professional to help you get pre-approved to buy a home.  

That's just the consultation there are hundreds of additional steps involved and as a home buy typically the seller pays our fees...so no cost to you, isn't that great?

Home Is Where The Heart Is

The emotional or ‘real’ reasons that many Americans strive to become homeowners.

The Joint Center for Housing Studies at Harvard University performs a study every year surveying participants for the reasons that American’s feel are most important in regards to homeownership.

The top 4 reasons to own a home cited by respondents were not financial.

1. It means having a good place to raise children & provide them with a good education

From the best neighborhoods to the best school districts, even those without children at the time of purchasing their home, may have this in the back of their mind as a major reason for choosing the location of the home that they purchase. 

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

2. You have a physical structure where you & your family feel safe

It is no surprise that having a place to call home with all that means in comfort and security is the #2 reason.

3. It allows you to have more space for your family

Whether your family is expanding, or an older family member is moving in, having a home that fits your needs is a close third on the list. 

4. It gives you control over what you do with your living space, like renovations and updates

Looking to actually try one of those complicated wall treatments that you saw on Pinterest? Want to finally adopt that puppy or kitten you’ve seen online 100 times? Who’s to say that you can’t in your own home?

The 5th reason on the list, is the #1 financial reason to buy a home as seen by respondents: 

5. Owning a home is a good way to build up wealth that can be passed along to my family

Either way you are paying a mortgage. Why not lock in your housing expense now with an investment that will build equity that you can borrow against in the future? 

Bottom Line

Whether you are a first time homebuyer or a move-up buyer who wants to start a new chapter in their life, now is a great time to reflect on the intangible factors that make a house a home.

If you or anyone you know is ready to buy or sell a home in South Florida, contact Jay Cermak Top Fort Lauderdale Real Estate Agent with The Edwards Real Estate Group at 954.235.3589!  We take a consultative approach and will help educate you about the buying process, conduct a needs analysis to understand exactly what your looking for and then navigate you through the buying or selling process from Start to Close!

Broward County January 2016 Market Update

The National Numbers came out the other day showing that Nationally Homes are up 11% in January 2016 versus January 2015.  While the news loves to report on National Statistics with Home Sales...at the end of the day it's the same as a Weather Man telling you that the Average Temperature in the Country is 73 Degrees.

Your Area or even your street could be 30 Degrees and it could be 100 Degrees Somewhere Else.  Jay Top Fort Lauderdale Real Estate Agent with The Edwards Real Estate Group studies the local Fort Lauderdale Real Estate Market and Broward County Florida 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

We Study the National Real Estate Numbers so that we can have conversations with our clients about whats happening Nationally and then relate that to our local markets.  Even different Price points in South Florida can tell a different story.

Let's Get into how we did in January 2016 in Broward County Florida:

Single Family Homes Trending from November 2014 to January 2016:

In January 2016 there were 5,144 Homes on the Market for Sale, 892 Homes Actually SOLD in January and 1,551 Homes were Pending in January.

Looking at this chart the light green shows you everyone who is trying to sell their home and the dark green are all the homes that sold.  Now for the past year and a half we have had roughly 5100 homes give or take for sale.  Those numbers don't matter if your goal is to sell your home.  When Selling your home in Broward County you want to be the Dark Green line that actually Closed!

Would you rather be one of the 5144 Homes on the market in January or one of the 892 Homes that SOLD and went home with money?

January 2016 Home Sales in Broward County are up 6.6% versus January 2015.

Now this is a Overall View of any Single Family Home in Broward County. Again like the national home sales, this information is important to understand however it does tell the story for your specific home.

Once have have this narrowed down to County then we can go further into detail by Price Point and More.

While Florida still has quite a bit of inventory of Short Sale and Foreclosed Homes, the number of homes has dropped dramatically.  If we look at the same chart as above remove REO (bank owned) or Short Sales the numbers only drop slightly. 

Slight Change, again in the Broward County Real Estate Market you will want to ensure your home is one of the dark green homes that actually sells.  The Active Homes For Sale on the market is like everyone who wants to audition for American Idol....The Light Green are all the people who think they can sing and the Dark Green are the ones who made it to Hollywood!

Now that we have the homes that are not foreclosures or short sales we can narrow it down by price points.  This blog will be too long to post ALL the price points so I'll just post a few.  In Broward County the lowest inventory are homes under $100,000.  

Less than 70 Homes sold in January 2016 that were under $100,000.  Many of them could be homes in the 55+ Communities, which restricts ownership to homeowners who are 55 years old or older.

Lets look at the $300,000 - $500,000 price point next.  

There were 1,334 homes For Sale in January and only 234 that actually sold with 389 pending.   The Data Varies from price point to price point, and then street by street.  The ONLY true way to know whats happening in your specific neighborhood is to Contact Jay Cermak Top Fort Lauderdale Real Estate Agent with The Edwards Real Estate Group at 954.235.3589 and we can pull up information in your specific neighborhood to see whats happening locally.

Last thing we want to do is look at the data for the past 10 years in all of Broward County.  Many analysts have stated we were in a real estate bubble in 2006.  And we all know how that turned out.  The Good News is we are definitely out of that bubble and in Broward County we have a strong real estate market.

Notice the Light Green Homes that were active sales are the most dramatic Change.....and they stopped declining around July 2013 and the active homes for sale has been going up and steadying.  These are all people who are trying to make it to Hollywood!

What's great to see about the Real Estate Market for Single Family Homes in Broward County is from 2006 to 2016 that green line has been rising slightly.  No Matter what the media tells you or when a market shifts or not.  Broward County has a strong market of SOLD homes from 2006-2016.  

When you hear people talk about seasonality or dramatic changes in the real estate market they typically are talking about Active Homes for Sale because thats were we can see the most dramatic change in numbers.  You rarely hear anyone say in Broward County we have a strong SOLD market of homes that get sold steadily for the past 10 years.

If you are considering selling your home Contact Jay Cermak Top Fort Lauderdale Real Estate Agent with The Edwards Real Estate Group at 954.235.3589 and schedule a FREE Real Estate Consultation with one of our Top-notch Real Estate Agents.

Jay Cermak and The Edwards Real Estate Group studies the real estate market and will help YOU achieve your goal of landing on the Dark Green and becoming a SOLD home not one of the over 5,000 homes trying to sell.

U.S. Real Estate Market Update: Existing Home Sales Inch Up in January

As a Real Estate Professional it's important to understand the National Averages, Local County and when it comes to a specific home understanding the sales in that neighborhood.

Nationally in January Home Sales rose 11% in 2016 versus January 2015 by 5.47 Million.  This shows a strong real estate market nationally.  Home Sales are slightly up 0.4% compared to December 2015

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

Inventory Levels are still below historic norms with roughly a  4 Month Supply.  To put that number in perspective typically a "Balanced" Market is a 6 Month Supply.  Balanced Market means it's not a sellers market or a buyers market.  When Inventory is low that could mean it's a Sellers market pushing prices high and increasing the competition between home buyers.

Homes Sold Nationally in 64 Days with 32% of all Home Sales sold in less than a month!  If a home is priced right and looks great typically it will sell in less than 14 days.  There are other extremes to this if the home is not priced right or updated it could sit on the market for a year or more.  That's why the average is 64 Days.

In Broward County we have seen low price points under $200,000 with low inventory sell in as little as 1 day because of the demand.  Our $Million Dollar inventory can sell in less than 30 days, however the inventory is over 11 Months of Supply, meaning it's a Buyers Market.

Understand the national numbers you hear don't really tell the whole story.  It's like a weather man saying the national average for weather today is 72 Degrees.  It doesn't mean your specific area is 72 Degrees.

If you are interested in knowing the true Home Sales update in your specific Neighborhood Contact Jay Cermak Top Fort Lauderdale Real Estate Agent Today!  Call or Text 954.235.3589 for your FREE market update in your neighborhood in South Florida.

The only way to truly understand what your home is worth or may sell for is the study the micro market which varies from street to street.

How To Get The Most Money When Selling Your House

Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive maximum value for your house? Here are two keys to ensuring you get the highest price possible.

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

1. Price it a LITTLE LOW

This may seem counter intuitive. However, let’s look at this concept for a moment. Many homeowners think that pricing their home a little OVER market value will leave them room for negotiation. In actuality, this just dramatically lessens the demand for your house (see chart below).

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. In that way, the seller will not be fighting with a buyer over the price, but instead will have multiple buyers fighting with each other over the house.

Realtor.com, gives this advice:

“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”

2. Use a Real Estate Professional

This too may seem counter intuitive. The seller may think they would net more money if they didn’t have to pay a real estate commission. With this being said, studies have shown that homes typically sell for more money when handled by a real estate professional.

Research posted by the Economists’ Outlook Blog revealed that:

“The median selling price for all FSBO homes was $210,000 last year. When the buyer knew the seller in FSBO sales, the number sinks to the median selling price of $151,900. However, homes that were sold with the assistance of an agent had a median selling price of $249,000 – nearly $40,000 more for the typical home sale.”

Bottom Line

Price your house at or slightly below the current market value and hire a professional. That will guarantee you maximize the price you get for your house.

Thinking of Selling your Fort Lauderdale Home? Jay Cermak, Top Fort Lauderdale Real Estate Agent with The Edwards Real Estate Group, has many strategies to help you sell your home.  Focusing on helping you stage the home, professional photographs and maximum online exposure to over 600+ websites and intense Internet Marketing to find a buyer for your home.  Those are just a few examples of what we do to get homes sold!

Contact Jay today at 954.235.3589!