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.
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| 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.
