It sure looks like the lack of single-family home inventory is starting to slow transaction volume in the Fort Lauderdale area. Prices have been pushed higher as the inventory remains limited. The monthly average of real estate transactions in Broward County is the lowest we have seen in years. Here are the numbers for the chart above:
|Broward County – Average Monthly Transaction Volume|
Inventory remains low
The inventory of condos for sale hasn’t dropped as much as the single-family home inventory. In November there were 7,628 condos on the market and only 3,086 houses.
Average sale prices in Fort Lauderdale area
Obviously the lack of housing supply is having an impact on prices. The average sale prices of houses in the area hit a new high of $558,708 and condos reached $283,019 during the month of November. Condo prices have lagged throughout 2020, but are now moving higher since there is such low inventory in the housing inventory.
We go through periods where it looks like the economy may recover and rates could move higher, then they retreat. We have had historically low mortgage rates since the last housing crash, so it’s getting difficult to keep predicting higher rates at this point. This next chart is just a snapshot of rates over the last two years.
Sales of houses and condos in Fort Lauderdale area
The month of October was the strongest in sales volume for 2020, with a total of 3,241 closed sales. Sales declined 10% in November to 2,927. This chart shows how seasonal the deal volume can be. The drastic decline during the spring this year led to a strong summer and fall. Supply constraints in the residential real estate market may keep a lid on deal volume in 2021.