We have been showing that both the South Florida housing and condo markets have been experiencing some headwinds recently. In particular, we have noted that the April/May period was most likely the top-tick in the recent faux housing recovery. Today we will look at a few charts focusing on the condo market in the Greater Fort Lauderdale area. First, let’s look at the transaction types through the month of July.
There has been a noticeable drop in the amount of traditional sales over the past few months. In April there were 1,207 traditional sales and that number has declined 14% to 1,037 in July. Also worth noting is the level of foreclosure sales is gradually increasing and has climbed 31% since April. That is a welcomed sight, as there is still a large number of properties lingering somewhere in the lengthy foreclosure process throughout Broward County. Feel free to click on the chart below to see which city is saddled with the highest amount of condo/townhouse properties in foreclosure.
Now let’s take a look at the average selling prices. The average sale price of a condo/townhouse property reached $180,522 in May and has slipped 7% to $167,771 in July. We always tell our readers that one month (or two) does not make a trend, so it is always helpful to include a chart.
As for inventory, it has been hovering around the 8,000 units level since February and was resting at 7,986 in July. This number represents a 36% increase since the April 2013 low of 5,877 in condo inventory. With inventory on the rise and hovering around the 8,000 unit level, sellers will now have to start dropping their prices to attract buyers and compete with the increasing amount of foreclosures gradually entering the marketplace.