If it all falls down

What will happen if it all falls down?   I guess the housing “recovery” has been fun, but it looks like transaction volume continues to decline.  Today we will look at the Greater Fort Lauderdale / Broward County Florida residential real estate market.  The average monthly transaction volume has been declining since peaking in 2015.

Deal volume falls in Fort lauderdale

As for the monthly average transaction volume, here is a chart showing the numbers since 2012 in Broward County, Florida:

 Average Monthly Transaction Volume
2012          2,555
2013          2,647
2014          2,636
2015          2,829
2016          2,815
2017          2,668
2018          2,428

The annual transaction volume numbers show the same downward trend over the past few years:

Annual deal volume falls in Fort lauderdale

Broward residential  transaction volume
2012       30,657
2013       31,768
2014       31,629
2015       33,950
2016       33,782
2017       32,013

Median sale prices for single-family homes have held up through the month of March.  Take a look of this next chart which shows the following median sale prices for March 2018

  • Tradtional sales – $355,000, up from $340,000 in February
  • Foreclosure sales – $302,617 up from $225,000 in February
  • Short sales – $280,000 up from $242,500 in February

Note the sharp climb in median sale prices of short sales and foreclosures.  This shows that the higher-end distressed properties are finally making their way to market after spending nearly a decade in the court system.  Keep in mind that the property owners that have the money for an attorney have been able to delay the property sales for nearly a decade.  As we have discussed at length, the foreclosure problem in South Florida will continue to linger for years to come.

Foreclosures, short sales Fort Lauderdale

How about condo properties in the Greater Fort Lauderdale area?  There was a big jump in short sale prices.  Once again, this further illustrates that some higher-end distressed condo properties are finally being sold.

  • Tradtional sales – $165,000, up from $160,000 in February
  • Foreclosure sales – $110,000 falls from $144,500 in February
  • Short sales – $162,500 up from $140,000 in February

Fort Lauderdale REO price falls

Mortgage rate falls slightly this week

As for the mortgage rate, there was a slight decline from last week.  Transaction volume has been fighting an uphill battle since rates have climbed.  The path to normalization may be a bump one for housing.  If mortgage rates continue their path higher, you will certainly see the sale prices of houses and condos declining.

mortgage rate falls

Good Reads & Good Tunes

Instead of a “Good Read”, today we will leave you with a classic tune from Jimmy Buffet