There are certainly plenty of questions about the volume of real estate deals getting closed as we progress through 2020. There was a nice bounce off the lows during march, but that could be short-lived. There were a total of 2,835 closed transactions in March. that number includes 1,493 condo sales and 1,342 houses, up from 1,155 condos and 1,004 houses sold during the month of February. You can see from the chart below that there is usually a seasonal decline in transaction volume during the December-January period each year.
The average sale price of a house in the Greater Fort Lauderdale area dropped % month over month. In February, the average sale price was $544,134 and was $502,111 in March. This chart begins in 2012 and you will see that the February average sale price was the highest on record for this market. Condo prices dipped slightly (2%) month over month. In February the average sale price of a condo was $240,071 and was $235,919 in March. The chart shows that the average selling price of a condo hasn’t moved much in either direction in the last few years. In June of 2018 it looks like condo prices in the area peaked at $264,975 and haven’t revisited that high point.
Borrowing costs remain low. According to Freddie Mac, a 30-year fixed rate mortgage was at 3.33% plus .70 in fees and expenses this week. We have discussed how rates may not drop too much more from here, because there is still an element of risks that lenders have to take when underwriting a loan.
Average monthly real estate deal volume
Through the first quarter of 2020, the monthly average of closed sales is low compared to the annual averages. keep in mind that the first quarter is usually a bit sluggish. No telling how deal volume will be impacted due to the coronavirus, but it would be a safe bet to say it may be below normal. The most active years during this latest cycle were 2015 and 2016, when the average number of closed sales was 2,829 and 2,815 respectively.