Monday, May 29, 2017

Median Price for Condos in Fort Lauderdale Showing 10% Annual Appreciation

The median sales price for an existing single-family home in the state of Florida rose to $234,900, appreciating 10.3% over the course of the 12-month period ending in April, 2017 according to the latest real estate statistics released by the research department of the Florida Association of Realtors. Through that period the statewide median price for condo, co-op and townhome properties increased 7.2% to $172,000. April marked the 65th consecutive month the median price for both housing sectors reported year-over-year appreciation.

Tight inventory of properties on the market ramains the prevailing trend in Florida real estate, resulting in a slight drop in total sales of single-family homes, which totaled 23,829 in April of 2017, a decrease of 1.2% when compared to April, 2016.

These stats are compiled by the Florida Association of Realtors from MLS data supplied by local realtor boards and associations. Median price represents the midpoint: half the homes sold for more, half for less.

Florida Realtors President Maria Wells is quoted as saying: "It puts consumers in a position where they have to be prepared and ready to buy, as many Realtors around the state report seeing more instances of multiple offers. And without more for-sale homes median prices will continue to rise due to demand. In April, sellers of existing single-family homes received (a median percentage of)96.2% of their original listing price, while those selling townhouse and condominium properties received 94.7% – an indication the listed price is extremely close to market value.

"Working with a local Realtor enables consumers to have the advice of an expert in their local housing market – someone who can guide them through their home search and help them find the right home that fits their budget and their lifestyle."

As usual property appreciation in Florida significantly out-performed the U.S. average. According to the latest report from the National Association of Realtors (NAR), the median sales price for existing single-family homes in April 2017 was $246,100, representing an annual increase of 6.1% on sales which decreased 2.4% to a seasonally adjusted annual rate of 4,950,000. Median price for existing condos was $234,600, a 5.6% rise over the previous annum.

Focusing on FortLauderdale and the surrounding neighborhoods, the median price for an existing single family home in Broward County appreciated 6.5% over the last year, while the median price for condos and townhomes increased 10.0%

Other stats reported show closed sales of single-family homes declined in 14 of Florida's 22 metro areas compared to the previous April, and dropped 1.2% statewide.

"There is no indication demand is falling off," said Dr. Brad O'Connor, the Florida Realtors Chief Economist. "Rather, all signs continue to point to a market being held back by a shortage of homes for sale. As of the end of April, the statewide inventory of single-family homes for sale was down nearly 5% compared to where it was a year ago.

"Additionally, single-family homes which did sell in April were snapped up as quickly as in any month in recent years. According to Florida Realtors median-time-to-sale metric, half the single-family homes selling in April of last year went from listing to close in 90 days or less, but this April, that figure declined to 85 days or less – a 5.6% drop."

O'Connor also noted condominium and townhome market has been relatively more balanced than the single-family market from a statewide perspective, but local markets experience more variance in their condo and townhouse inventory levels.

April's inventory remained constricted with a 4-months' supply for single-family homes and a 6.1-months' supply for townhome and condominium, according to Florida Realtors.

Meanwhile the interest rate for a 30-year fixed-rate mortgage averaged 4.05% in April of 2017 according to Freddie Mac, a fairly significan increase from the 3.61% average reported during the same month the previous year.

Thursday, March 23, 2017

Pay More Taxes, Get Less Appreciation, AND Freeze Your Butt Off. Sounds Like A Great Idea.

A number of interesting research reports have recently been released by WalletHub, a personal finance website, ranking the states in the country: which states have the highest and lowest property taxes; which states have the highest and lowest overall tax burdens; which states have the highest and lowest cost of living.

As always, going over these stats, we wonder why anybody wants to buy real estate in or live anywhere besides FortLauderdale.

Lowest Property Taxes


The average American household spends $2,149 on property taxes for their homes each year, according to the U.S. Census Bureau. Which states pack the biggest property-tax punch? WalletHub analyzed the 50 states and the District of Columbia in terms of real-estate taxes.

 (Rank, State, Property Tax Rate, Taxes on $179k Home, Median Price)

1.) Hawaii, 0.27%, $487, $515,300
2.) Alabama, 0.43%, $773, $125,500
3.) Louisiana, 0.49%, $876, $144,100
4.) Delaware, 0.54%, $969, $231,500
5.) District of Columbia, 0.56%, $1,000, $475,800
6.) South Carolina, 0.57%, $1,019, $139,900
7.) West Virginia, 0.58%, $1,044, $103,800
8.) Colorado, 0.60%, $1,073, $247,800
9.) Wyoming, 0.61%, $1,097, $194,800
10.) Arkansas, 0.62%, $1,111, $111,400
11.) Utah, 0.68%, $1,218, $215,900
12.) New Mexico, 0.74%, $1,324, $160,300
13.) Tennessee, 0.75%, $1,335, $142,100
14.) Idaho, 0.76%, $1,366, $162,900
15.) Mississippi, 0.79%, $1,408, $103,100
16.) Virginia, 0.80%, $1,420, $245,000
17.) California, 0.81%, $1,438, $385,500
18.) Arizona, 0.81%, $1,446, $167,500
19.) Kentucky, 0.81%, $1,511, $123,200
20.) Nevada, 0.81%, $1,523, $173,700
21.) North Carolina, 0.81%, $1,524, $124,200
22.) Montana, 0.81%, $1,525, $193,500
23.) Indiana, 0.87%, $1,560, $124,200
24.) Oklahoma, 0.88%, $1,569, $117,900
25.) Georgia, 0.94%, $1,685, $148,100
26.) Missouri, 1.00%, $1,790, $138,400
27.) Florida, 1.06%, $1,894, $159,000
28.) Oregon, 1.08%, $1,929, $237,300
29.) Washington, 1.08%, $1,931, $259,500
30.) Maryland, 1.10%, $1,956, $286,900
31.) North Dakota, 1.12%, $2,000, $153,800
32.) Minnesota, 1.18%, $2,110, $186,200
33.) Alaska, 1.18%, $2,112, $250,000
34.) Massachusetts, 1.20%, $2,139, $333,100
35.) Maine, 1.30%, $2,321, $173,800
36.) South Dakota, 1.34%, $2,389, $140,500
37.) Kansas, 1.40%, $2,502, $132,000
38.) Iowa, 1.48%, $2,649, $129,200
39.) Pennsylvania, 1.53%, $2,725, $166,000
40.) Ohio, 1.56%, $2,794, $129,600
41.) New York, 1.62%, $2,899, $283,400
42.) Rhode Island, 1.63%, $2,915, $238,000
43.) Vermont, 1.75%, $3,116, $217,500
44.) Michigan, 1.78%, $3,172, $122,400
45.) Nebraska, 1.85%, $3,308, $133,200
46.) Texas, 1.90%, $3,386, $136,600
47.) Wisconsin, 1.96%, $3,499, $165,800
48.) Connecticut, $1.97%, $3,517, $270,500
49.) New Hampshire, 2.15%, $3,838, $237,300
50.) Illinois, 2.30%, $4,105, $173,800
51.) New Jersey, 2.35%, $4,189, $315,900

The Highest Tax Rates

WalletHub also compiled a report ranking which states had the highest and lowest tax burdens.

1.) Rank
2.) State
3.) Effective Total Local and State Tax Rates on Median U.S. Household. Assumes “Median U.S. Household” has an annual income of $54,286 (mean third quintile U.S. income); owns a home valued at $178,600 (median U.S. home value); owns a car valued at $23,070 (the highest-selling car of 2016); and spends annually an amount equal to the spending of a household earning the median U.S. income.
4.) Annual State and Local Taxes on Median U.S Household.
Adjusted Overall Rank based on Cost of Living Index

1.) Alaska, 5.64%, $3,060, 5
2.) Delaware, 6.07%, $3,293, 1
3.) Montana, 6.89%, $3,741, 3
4.) Wyoming, 7.43%, $4,036, 2
5.) Nevada, 7.66%, $4,157, 7
6.) Tennessee, 7.97%, $4,3276, 4
7.) Idaho, 8.48%, $4,604, 6
8.) California, 8.79%, $4,774, 34
9.) South Carolina, 8.84%, $4,800, 11
10.) Florida, 8.94%, $4,851, 10
11.) Oregon, 9.22%, $5,004, 26
12.) Utah, 9.25%, $5,019, 8
13.) Colorado, 9.34%, $5,071, 14
14.) Alabama, 9.43%, $5,120, 9
15.) Arizona, 9.60%, $5,211, 12
16.) South Dakota, 9.77%, $5,302, 21
17.) District of Columbia, 10.0%, $5,428, 45
18.) North Dakota, 10.03%, $5,447, 17
19.) New Hampshire, 10.09%, $5,475, 35
20.) Louisiana, 10.33%, $5,608, 16
21.) Hawaii, 10.33%, $5,610, 49
22.) West Virginia, 10.38%, $5,635, 18
23.) Georgia, 10.57%, $5,739, 15
24.) North Carolina, 10.63%, $5,773, 20
25.) Oklahoma, 10.70%, $5,809, 13
26.) New Mexico, 10.73%, $5,825, 23
27.) Virginia, 10.89%, $5,943, 29
28.) Vermont, 10.89%, $5,913, 42
29.) Missouri,11.02%, $5,981, 19
30.) Texas, 11.12%, $6,034, 22
31.) Massachusetts, 11.52%, $6,253, 47
32.) Minnesota, 11.59%%, $6,291, 32
33.) Maine, 11.64%, $6,316, 40
34.) Washington, 11.72%, $6,363, 37
35.) Indiana, 11.87%, $6,444, 24
36.) Maryland, 11.92%, $6,470, 44
37.) Kentucky, 12.01%, $6,522, 28
38.) Mississippi, 12.14%, $6,589, 25
39.) Kansas, 1.28%, $6,665, 30
40.) Arkansas, 12.28%, $6,665, 27
41.) Pennsylvania, 12.33%, $6,691, 39
42.) New Jersey, 12.63%, $6,855, 46
43.) Iowa, 12.84%, $6,968, 33
44.) Michigan, 13.00%, $7,058, 31
45.) Ohio, 13.06%, $7,087, 36
46.) Connecticut, 13.56%, $7,361, 50
47.) Rhode Island, 13.57%, $7,367, 48
48.) New York, 13.58%, $7,370, 51
49.) Wisconsin, 13.60%, $7,384, 41
50.) Nebraska, 13.80%, $7,493, 38
51.) Illinois, 14.76%, $8,011, 43</li>

Adjusted Cost of Living

WalletHub incorporated these factors to then compile a ranking of the states by Adjusted Overall Rank based on Cost of Living Index.

1.) Delaware
2.) Wyoming
3.) Montana
4.) Tennessee
5.) Alaska
6.) Idaho
7.) Nevada
8.) Utah
9.) Alabama
10.) Florida
11.) South Carolina
12.) Arizona
13.) Oklahoma
14.) Colorado
15.) Georgia
16.) Louisiana
17.) North Dakota
18.) West Virginia
19.) Missouri
20.) North Carolina
21.) South Dakota
22.) Texas
23.) New Mexico
24.) Indiana
25.) Mississippi
26.) Oregon
27.) Arkansas
28.) Kentucky
29.) Virginia
30.) Kansas
31.) Michigan
32.) Minnesota
33.) Iowa
34.) California
35.) New Hampshire
36.) Ohio
37.) Washington
38.) Nebraska
39.) Pennsylvania
40.) Maine
41.) Wisconsin
42.) Vermont
43.) Illinois
44.) Maryland
45.) District of Columbia
46.) New Jersey
47.) Massachusetts
48.) Rhode Island
49.) Hawaii
50.) Connecticut
51.) New York




Monday, November 7, 2016

The Best Thing About Fort Lauderdale Real Estate

One of the most highly respected sources of real estate statistics, the CoreLogic Home Price Index, was recently released for September, 2016.

Once again, analyzing these numbers illustrates why buying property in Fort Lauderdale is such a smart investment.

According to this report home values in the Sunshine State appreciated 7.5% in the 12 month period which concluded in September, 2016. That number tops the national average of 6.3% and ranks Florida the 6th best state in the country in home appreciation.

Delving a little deeper into these stats, however, it is particularly intriguing to look at the forecasts for the upcoming year. CoreLogic projects property values in Florida will increase 7% over the next annum. That ranks 3rd best in the U.S. behind California and Nevada, and illustrates the true strength of the Sunshine State's real estate market.

Over the past few months the Pacific Northwest has been very hot. In this Setember 2016 HPI the highest home price appreciation was found in Washington state (10.3%), Oregon (10.1%), Colorado (8.6%), Utah (7.8%) and Idaho (7.7%).

Florida ranked 6th at 7.5%.

Well, every dog has their day. Anytime you see Utah leading the nation in anything other than great salt lakes you have to know there's a story in there somewhere. In large part I think this is because home prices nationwide have recovered unevenly. The whole country took a hit when the nationwide real estate market collapsed. It took a while to stabilize. The more desirable locations like Florida and California snapped back first, then the recovery spread across the rest of the nation, through the Northeast, Midwest and the West.

Still, while other states cycled in and out of the Top Five, the Top 10 in home price appreciation, Florida has remained near the top of the rankings. Maybe it wasn’t Number One in the nation, but as these reports were released, month after month, year after year, the Sunshine State was always in the Top Five.

A couple years ago the Midwest was hot. Wisconsin ranked near the top of the nation high in home price appreciation. Before that it was the Southwest; the highest increases in property values were found in Arizona. Before that it was the Northeast – New York and New Jersey.

Like hotshot gunfighters riding into town, looking to make themselves a name, these states came and went. Meantime, month after month, year after year, Florida remained high on the list.

The real insight in this latest report can be found not only considering at the appreciation over the past year, but looking at the CoreLogic forecast for the upcoming annum.

Washington reported a home price increase of 10.3%, but CoreLogic projects only 5.8% growth over the course of the upcoming year. Oregon homes went up 10.1%, yet the forecast for the next annum is only 6.1%. Colorado showed an 8.6% increase; projection for the next 12 months is 5.7%. Utah and Idaho reported increases of 7.8% and 7.7% respectively for the year ending in September 2016, but over the next annum home values in those states are only projected to rise 5.1% and 4.9%.

According to this CoreLogic HPI home prices in Florida rose 7.5% in the 12 months which concluded in September, 2106, but are projected to increase 7% over the next year. That ranks 3rd in the United States.

What does this tell you? First, it is relatively obvious these other markets are experiencing a temporary uptick in high appreciation as the housing recovery cycles through their geographic region. Secondly, that Florida's real estate market offers a much more consistent, reliable appreciation. This is what has always made the state, and South Florida especially, such an attractive location for investors, and frankly anyone who wants to make money in real estate.

Florida is an appreciation driven market, which has always operated on a boom and bust cycle. In a normal year home prices will typically appreciate 7-8%. Perhaps once a decade the market spikes and you’ll see property values increasing 10-12%, sometimes even more, but those times are usually followed by periods of consolidation when the market cools.

In Fort Lauderdale and Broward County, specifically, home prices are projected to keep rising at a significant rate. It is all but inevitable. Not only because Fort Lauderdale is a tropical paradise with no state income tax and a relatively low cost of living where you can swim in the ocean all year round and you must remember to turn on your car heater every so often, not because you need it, but just to keep it from rusting through.

It's a simple matter of supply and demand.

There is an old adage which is usually recited about beach front property: “They're not making any more of it.”

That has never been truer than it is in Fort Lauderdale, the primo location in the state of Florida. There is only so much land. Broward County is not large, approximately 27 miles north and south, perhaps 45 miles east to west. However, around 60% of this geographic area is comprised of wetlands which cannot be developed without cutting off their own water supply. They can no longer build any anything else beyond the Sawgrass Expressway and US-27, which are somewhere between 10 and 15 miles from the coast. The entire county is 1,320 square miles with 115 square miles of waterways, but when you boil it all down this leaves only 471 square miles of developable dry land.

At this point this developable land is now 99.99% developed. There are no more swaths of scrub forest east of US-27 and the Sawgrass which can be bull-dozed into housing projects. Occasionally you see quotes from developers bemoaning the fact there’s no more chunks of empty land. This is like a whaling boat Captain complaining it’s getting harder to find Sperm Whales. You know, pal, if you weren’t there SHOOTING THEM WITH HARPOONS, might be a few more of them around.

Still, drive the Sawgrass Expressway through northern Broward you see housing developments and commercial properties along the east side of the road, and along the west side of the highway it is literally The Everglades – whip grass, wading birds and alligators.

The lack of land, however, is not stopping the influx of people moving on down. Florida recently surpassed New York as the third most populous state in the nation. This trend will undoubtedly continue as Baby Boomers across the U.S. retire and seek a warmer climate. You never have to shovel sunshine off your driveway. Broward County is simply the most desirable part of the state. In 1960 they took the Census, there were 60,000 residents. Ten years later in 1970 there were 600,000. Currently the population is around 1.75 million and projected to climb to almost 2.3 million by the year 2020.

That's over a half million more residents – an additional 31% – moving into the same 471 square miles of developable dry land.

Talk about a No Brainer, this would seem to be a simple matter of connecting the dots, what this should mean for property values in Fort Lauderdale and throughout Broward County. 1) We don't have much land. 2) The population is growing.

Add these factors up significant appreciation in property values seems relatively inevitable. In addition, whatever rate of appreciation you might wish to forecast for the overall county-wide average, it will undoubtedly be greater in prime real estate such as waterfont homes, oceanfront condos, houses and townhomes in the better nieghborhoods along the coast.
You can read a more detailed analysis of the prospects for appreciation in Fort Lauderdale property values by clicking on this link to the Investor Central page of my website at Fort Lauderdale Beach Property (dot com).

Friday, July 29, 2016

Shocked! Shocked, I Say!

A crack-down by the U.S. Treasury Department on money laundering in the lucrative South Florida real estate market has been expanded to include Broward and Palm Beach.

In January of 2016 the Financial Crimes Enforcement Network enacted a “geographic targeting order” which requires title insurance firms to require names of owners of offshore shell companies that pay cash to purchase high-end property in Manhattan and Miami. That policy has now been expanded to include Broward and Palm Beach Counties, as well as other luxury real estate markets in New York, California and Texas.

According to “FinCen” roughly a quarter of reported transactions in Miami and Manhattan involved people who were separately the subject of suspicious activity reports by banks and other financial institutions, indicating possible criminal activity.

The Miami Herald published an interesting article last April (which you can read by clicking this link ) discussing the possibility that much of this funny money might have fueled the city’s luxury condo boom and inflate property prices.

One reported instance concerned a corrupt South American government official who was accused to stealing millions from his country, who set up a shell corporation in the Cayman Islands and then purchased high-end property in Miami.

On the surface, this might not seem so out of the ordinary. For starters, name one story out of Miami that does NOT included a corrupt South American government official, let alone stolen millions and shell corporations in the Caymans.

We still find it shocking, however, to think some people might be laundering money through our real estate market.

This is South Florida. I thought we only laundered drug money here.

As Omar Little once said: “Man’s got to have a code.”

Friday, August 14, 2015

No More Sperm Whales in Fort Lauderdale

As home construction picks up around the nation, it remains at a low level around Fort Lauderdale.
According to the U.S. Commerce Department housing starts increased 26.6% in June (2015) year over year, and Building Permits were up 30% through that same period.
Around Fort Lauderdale and Broward County, Florida, however, home building is hovering around an all-time low. From 1992 through 2006 the South Florida reporting area – which encompasses Miami-Dade, Broward and Palm Beach Counties – typically averaged between 20,000 and 30,000 housing starts per year.
Now, those counties average around 7,000 housing starts per year, with Broward accounting for the fewest – only a projected 1,200 for 2015.
There’s a very good reason for this – we simply don’t have any more land.
In all Broward County there is only 471 miles of developable dry land and at this point it is essentially all developed.
Saw an article last year where a developer was bemoaning this fact, explaining wistfully: “There aren’t any more open green fields.”
That’s like whaling boat captains complaining it’s getting harder to find sperm whales.
Well, pal, maybe if you weren’t out there, you know – shooting them with HARPOONS – there might be a few more of them around.
Ponce de Leon landed in Florida in 1513. Developers discovered it in the Sixties. The U.S. Census in 1960 reported the population for Broward County at 60,000. Ten years later in 1970 the population was 600,000. Through the 70s and 80s, aside from tourism and serving alcohol the only industry in South Florida was construction. People moved to Fort Lauderdale and got jobs building houses for the next bunch of people who showed up. Developers drained swamps, bulldozed scrub forest, built miles of tract homes. Eventually they reached the edge of the Everglades, were not allowed to go any further, since it would be cutting off our water supply.
As a result Fort Lauderdale is now a perfect example of that old real estate adage – they’re not making any more of it.
Broward County, Florida
Broward County is fully developed, but people keep moving here from those sub-arctic urban crapholes up north. Late night comedians might crack jokes about Florida, but you don’t have to shovel sunshine out of your driveway. After two brutal winters folks up north are now bracing for what is predicted to be a “Godzilla” El Nino, so the exodus to the South is not likely to slacken. Our population stands currently around 1.75 million and some projections expect this number to climb to 2.3 Million by the early 2020s. That’s an increase of 30% within the next 5-6 years.
The effect this shall have on our property values should be truly profound.
The Fort Lauderdale area is quite simply the best part of Florida. It is not a Third-World urban city like Miami, nor the tractless waste which is Palm Beach. Broward County is not large, only 1,323 square miles. The western portion of the county, however, over 60% of it, is wetlands – the Everglades – which is the water supply for all South Florida, and therefore cannot be developed. Boil it all down that leaves only 471 square miles of developable dry land, which as we’ve pointed out is fully developed.
Talk about a No Brainer, this would seem to be a simple matter of connecting the dots, what this should mean for property values in Fort Lauderdale and throughout Broward County. 1) We don't have much land. 2) Population is growing. 3) Demand is increasing. And 4) Prime property will outperform the overall average.
Add these factors up significant appreciation in property values seems relatively inevitable. In addition, whatever rate of appreciation you might wish to forecast for the overall county-wide average, it should be markedly greater in prime real estate such as waterfont homes, oceanfront condos, houses and townhomes in better neighborhoods along the coast.
In my professional opinion we are looking at a pretty good stretch into the foreseeable future in South Florida – barring Acts of God, asteroid impacts and/or the total collapse of Western Civilization. Bouncing off the bottom real estate values have already come up sharply, then consolidated. Better locations throughout Fort Lauderdale and Broward County are up almost 30% in recent years. Don't listen to skeptics who act like this is somehow a bad thing. You are not going to get 20% a year on your investment. That is simply unsustainable. Still, property appreciation might average 8-10% over the next four to five years. If that's not good enough for you, good luck and God bless.
In 2010 I started telling customers to start buying. The housing market in Fort Lauderdale had stabilized, had started inching upward. I told people as soon as real estate investors noticed prices heading up in South Florida we’d have a mini land rush. Well, I was right. Customers who listened have already seen nice appreciation.
Others, however, started citing stuff they were reading on the Internet about the “Shadow Inventory” – this mythical tidal wave of impending foreclosures that was going to swamp our market like a tsunami. Well, according to the Internet I win the Nigerian Lottery three times a week. Again, I tried to explain with Florida being a judicial foreclosure state there was simply no way the banks could ever release waves of REO properties again, especially once they got caught in that whole “Robo-Signing” scandal. Meanwhile, statistics released by leading real estate data sources such as CoreLogic and RealtyTrac showed foreclosures dropping by double digits month after month. The latest stats (the CoreLogic Foreclosure Report for June, 2015) shows the foreclosure inventory in Florida dropped 54% year over year, and completed foreclosures declined 17% in that same people.
So now those people are sitting in a little rubber raft on the beach in rain slickers and floppy hats, waiting for the big wave, while customers who listened lounge on the balcony of their luxury oceanfront residence, sipping champagne and laughing at those crackpots in the rubber rafts.
For an in-depth analysis of how the projected increase in the population of Fort Lauderdale and Broward County should effect our home values, check out the “Investor Central” page of my website at Fort Lauderdale Beach Property (dot com).

Wednesday, July 15, 2015

Great Affordable Family Pool Home

Around South Florida reasonably priced family homes between $200-300,000 are in high demand.
Well, we just got a great Listing for an affordable family pool home in a great family neighborhood, just in time for some lucky family to settle into before school starts in September.
This home is in absolute tip-top condition. These are the owners you want to buy a house from.
Located between University and Pine Island, just south of Commercial, this 3 Bedroom, 2 Bath home features many upgrades, went through a major remodel just over a year ago. It features: an Atrium in the middle of the home; high ceilings; hardwood floors; a gourmet kitchen with custom solid wood cabinetry, granite counters and backsplash; double hurricane-glass front doors; an updated master bath; newer appliances, window treatments, and aluminum garage door.
The swimming pool is in a screened porch, heated, with a spa, and the backyard is very private, surrounded by lush tropical landscaping.
To see more details, watch an exclusive Video Tour, go to the “Great Deals” page of our website at Fort Lauderdale Beach Property (dot com)

Wednesday, February 11, 2015

The Highest Return on Your Real Estate Investment

Obviously, serious investors care about which location will reap the highest returns on their real estate investments.

When it comes to great returns Fort Lauderdale real estate is not much of a secret. Our market is legendary; fortunes are made here. Just look at the S&P / Case-Shiller Home Price Index. Going back to the 70s South Florida consistently out-performs the rest of the United States.
S&P / Case-Shiller Home Price Index for South Florida (Blue) vs. U.S. Average (Green) as of January 2015

When the Florida Association of Realtors released their annual year end statistics for 2014 in late January it supported what I have been saying for years – Fort Lauderdale and Broward County is the absolute best part of the fabled Sunshine State.

Just look at the numbers.
Statewide, the Median Price for a Single Family Home increased 5.3%. Values for Condos and Townhomes went up 9.8%.

In the South Florida reporting area encompassing Miami-Dade, Broward and Palm Beach Counties, however, Median Price for Single Family Homes grew 6.0%, while Condos increased 12.4%.
Drill a little deeper you will see how Broward County out-performs the South Florida reporting area. Single Family showed an increase of 6.2%, Condominiums, Townhomes and Villas 16.8%

Now 6.2% appreciation in Single Family Home Values may not seem too sexy, but our market was consolidating through the second half of 2014 after soaring 24.5% in 2013 and 11.9% in 2012. Some began to worry about another housing bubble, so seeing this cool down was actually a very good sign, indicating sustainable, long term growth. Even with that consolidation Median Price has increased 30% in the last two years and 42% in the last three.
Is this an anomaly or a historical trend? And does the same hold true through boom years?

Let's take a look at the year end numbers from 2013.
According to the annual year end statistics for 2013 compiled by the Florida Association of Realtors, the Median Price for a Single Family Home increased 16.6% statewide. In the South Florida reporting area that number was 23.8%, and in Broward County the Median Price for Single Family went up 24.5%.

A similar story in Condominiums. The Median Price for Condos, Villas and Townhomes went up 19.6% statewide, 25.2% in South Florida, and 25.9% in Broward.
In addition another crucial factor which makes Fort Lauderdale the best place to invest is the liquidity. We have a very active and highly shopped market. So when it comes time to sell, you will have plenty of buyers.

So buy now, or forever hold your piece – of Cleveland, Newark or Detroit.
Meantime, if you'd like to see the Market Reports from the Florida Association of Realtors to which I am alluding Click on this Link.