Will the declining deal volume in Fort Lauderdale real estate eventually hit selling prices? It’s difficult to tell right now, but the average selling price of a single-family home dropped to $468,646 in May after reaching $544,134 in February. That represents a 14% decline in just three months. Condo prices actually rose slightly month over month. In April, the average selling price was $235,911 and it climbed to $240,808 in May. Keep in mind that the average selling price may be volatile for a several months until the dust settles from the coronavirus.
Recent peaks in average selling prices in Fort Lauderdale area
- Houses hit a peak of $544,134 and dropped 14% since that point to $468,646 in May
- Condo properties peaked at $264,975 in June 2018 and dropped 9% to $240,808 in May.
There were a total of 1,529 houses and condo deals closed during the month of May. There were 814 houses and 715 condos sold. Declining deal volume could keep prices under pressure if it persists. This next chart shows that we haven’t seen so few deals closed since we started tracking the numbers in January 2012. One month certainly does not make a trend, but several months of lower volume may hit prices. The segment currently facing some pricing pressure appears to be properties in the $500,000 to $1,500,000 range. When you combine the insurance costs, property taxes, ongoing maintenance along with uncertainty in the job market, carrying a property without income gets expensive quickly!
Residential inventory remains tight
The number of houses and condos on the market around Fort Lauderdale still remains tight. There were 4,762 houses and 8,234 condos on the market during the month of May. The number of listed properties may rebound in the summer as sellers are more comfortable allowing showings. Depending on the price range and trends in the rental market, time will tell if the new supply is met with eager buyers.
Is this the low for mortgage rates?
The 30-year and 15-year mortgage rates dipped slightly this week. How low do you think mortgage rates will go? As long as banks are willing to lend at these levels, it should provide support to real estate prices. Not many people believed we could be at these levels, but these are unprecedented times indeed!