Greater Ft. Lauderdale Home Prices Go Up Again as Inventory Drops 33%

Fort Lauderdale, FL

According to the Miami Association of Realtors, the median sales price of single-family homes during March in Broward County was $180,009, up eight percent compared to March 2011.

The median sales price for condominiums increased 7.1 percent to $75,100 compared to a year prior.  Broward County condominium prices have increased 14 out of the last 15 months.

The average sales price for total single-family homes increased 4.1 percent, from $255,335 to $265,754. The average sales prices for condominiums rose 17.4 percent, from $109,338 in March 2011 to $128,319 last month.

"The Broward County real estate market continues to experience positive trends, as sales remain at strong levels, prices rise, and inventory sharply declines," said Rick Burch, 2012 president of the Broward County Board of Governors of the Miami Association of Realtors.  "The resurgence of the local real estate market benefits the economy, the business community and residents at large.  Demand driven by international buyers and investors, baby boomers, and migration U.S. residents should continue long into the future."

Statewide median sales prices in March increased 20.8 percent to $105,000 for condominiums and 10.3 percent to $139,000 for single-family homes, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. The national median existing-home price for all housing types was $163,800 in March, a 2.5 percent increase from March 2011, according to the National Association of Realtors (NAR).

Broward Housing Inventory Declines 33 Percent

From March 2011, the inventory of residential listings in Broward County has decreased 31 percent from 16,629 to 11,507 in March 2012.  Compared to the previous month, the total inventory of homes dropped four percent.  Total housing inventory nationally declined 1.3 percent at the end of March but is 21.8 percent below a year ago.

"The performance of the Broward County residential real estate market is very encouraging, particularly in regards to consistent price appreciation over the last few months," said Ernesto Vega, president-elect of the Broward County Board of Governors of the Miami Association of Realtors.  "Strong demand continues to result in market strengthening, as supply dwindles."

In Broward County, single-family home sales increased 2.2 percent, from 1,169 in March 2011 to 1,195 last month.  Condominium sales dropped 15 percent in March compared to a year earlier, from 1,837 to 1,550.
By Michael GERRITY

Statewide sales of existing single-family homes totaled 18,370 in March 2012, down 5.7 percent compared to a year ago.  Statewide condominium sales totaled 10,012, down 12 percent from those sold in March 2011. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops decreased 2.6 percent from February but were 5.2 percent higher than they were in March 2011, according to NAR.

Distressed Properties

In March, 41 percent of all closed residential sales in Broward County were distressed, including REOs (bank-owned properties) and short sales, compared to 52 percent in March 2011 and 48 percent the previous month.  Contrary to a year ago, there are now more short sales being transacted than REOs.

International Buyers Fuel Cash Sales

In March, cash sales accounted for 69 percent of all residential sales, 50 percent of single-family and 84 percent of condominium closings, in Broward County.  Nearly 90 percent of international buyers in South Florida purchase properties all cash.  Nationally, all-cash sales were 34 percent in March, reflecting the stronger presence of international buyers in the South Florida real estate market.

Home Foreclosures To Increase Rapidly After $26 Billion Mortgage Settlement Is Finalized

Tens of thousands of squatters throughout the United States may soon find themselves thrown into the streets as a $26 billion mortgage settlement is finalized.

Included in the settlement are Bank of America,  JPMorgan Chase, Citibank, Wells Fargo and Ally Financial.Under the settlement the nation’s five biggest mortgage lenders have agreed to speed up the foreclosure process for tens of thousands of homes by creating new strict guidelines that banks must follow when repossessing homes.

Many previous homeowners have been able to stay in their homes since fall 2010 after the robo-signing scandal allowed bank employees to sign off on foreclosures without proper documentation. After that scandal broke banks put the brakes on the practice, slowing future foreclosures to a crawl.

Because of the slow down in foreclosures as banks and mortgage lenders reviewed their practices many people stayed in their homes for months and even years without making payments. Under current processing speeds the average home takes 370 days to foreclose compared to half that time five years ago.

Some squatters have fared better than others, in Florida the average time spent in a home is 861 days while New York residents have spent 1,056 days in their homes after being served a foreclosure notice.

With courts more likely to accept foreclosure filings under the new settlement rules foreclosure rates are picking up in many areas, especially in cities where banks were previously afraid to file some cases for fear that their documentation would be rejected by the judge.

In the meantime homeowners in states most affected by the increase in foreclosure rates could see the value of their homes fall even further as more homes enter the market. Home pricing provider Zillo estimates that home values could fall by 3.7% by the end of 2012 with a bottoming out effect in early 2013.

As I had previously reported it is believed that mortgage financing rates have bottomed out which means many of the homes entering the open market could stay there for long periods of time as banks and mortgage lenders struggle with increasing mortgage rates and a market that managed to slow even after rates dipped below 4% for new home and refinance options.