Fort Lauderdale Condo market stats 3 qtr 2010

Presentable Market DataChuck Carr

2317 Briarleigh Way

Dunwoody, GA 30338Office: 770-698-8797

Cell: 678-591-6030

Email: [email protected]

www.ChartMasterServices.com

mailto:[email protected]

3Q 2010 Quarterly Market ProfileProvided by ChartMaster Services, LLC exclusively for Keller Williams Realty

Condo/Townhome Residences – SE Florida MLS, E. Ft. Lauderdale Area

• Cumulative monthly

Condo/Townhome sales

increased by +37.3%

through September, 2010

compared to the same

period of 2009

• Cumulative 2009 sales

were also +80% above

those of 2008



• 2010 monthly sales were

much higher through

June, compared to the

same months in 2009,

however sales dropped

below those of 2009 for 2

out of 3 months in 3Q

2010

• There appears to have

been a letdown in sales

after stimulus-inspired

closings took place

through June



• The change in each quarter’s sales over the same quarter of the previous year was strongly positive from 1Q 2009 until 3Q 2010 when the change became negative



• While overall Condo sales are much higher through September, it will bear watching to see if the 3Q lull becomes longer lasting

• 3Q 2010 sales were -5.2% lower than those of 3Q 2009



• After a spike in foreclosure sales in 1Q 2009, their percentage of total sales remained lower since then

• 3Q 2010 percentage of foreclosure sales was nearly equal to that of 2Q 2010, but was nearly 6 percentage points higher than in the same period in 2009



3Q ONLY

• The percentage of sales that were foreclosures in the <$200K price range rose by 12.2 percentage points during 3Q 2010, compared to 3Q 2009, representing nearly 4 of every 10 closings in that price range

• There were no foreclosure sales in price ranges above $750K during 3Q 2010



• 3Q 2010 Short Sales as a percentage of total sales were highest in the $200K-$299K price range, representing nearly 40% of all transactions in that price range

• Increased 3Q 2010 percentages compared to 3Q 2009 occurred on both ranges below $300K



• Combining Foreclosure sales with Short Sale transactions gives a measure of total Distressed sale transactions

• Distressed sale transactions have become a large part of total sales transactions since 2008, ranging from a low of 38.4% to the high point of 49.6% reached in 3Q 2010



• More than 65% of the sales of properties priced <$200K were distressed sales in 3Q 2010, up by 17 percentage points

• Sales of Mid-priced units also had high percentages of distressed sale transactions, with the low point falling in the $300K-$499K price range



• The Median sales price

was lower again in 3Q

2010, by -16.0%

compared to 3Q 2009,

continuing to be affected

by a large number of

Distressed Sale

transactions

• The decline brought the

3Q 2010 median sales

price to the lowest

quarterly price point in

the last 2 years, dropping

in each quarter since 4Q

2009



• The 2Q and 3Q declines in 2010 shows that it will take longer to determine the real direction of prices in this market



PREVIOUS LISTING PERIODS INCLUDED

• A positive result from

lower median sales prices

was an increase in the

percentage of asking

price (% S/L) received by

sellers

• The median % S/L rose to

the highest point (84.1%)

in the last 3 years during

3Q 2010, increasing by

6.3 percentage points

over 3Q 2009 and .8

points above the previous

quarter




3Q ONLY

• The 3Q 2010 increase in % S/L occurred in 5 of the 6 price ranges, with the largest (14 percentage points) increase falling in the $500-$749K range




• An overall downward monthly trend in the S/L price ratio occurred through 2008, but was reversed in 2009 and through 3Q 2010, making it appear that a bottom was reached in this measure during January of 2009

• A downward trend occurs when Sellers fail to price their properties in line with the decline in market demand and the resulting Buyer price resistance forces sellers to accept lower prices during contract negotiations




3Q ONLY

• Segmenting 3Q 2010

median DOM by price

range shows that declines

were small in the lower

price ranges, but greater

differences occurred at

higher price levels where

sales volumes were lower




3Q ONLY

• The percentage of transactions following a price reduction was lower than in the same period in the previous year in 4 of the 6 price segments during 3Q 2010, representing one positive aspect of current market conditions




3Q ONLY• When a price reduction

was required, substantially lower % S/L ratios occurred in all price ranges in 3Q 2010, but there were significant differences in degree among the various price ranges

• For example, the ratio for a price-reduced property dropped by -30.8 percentage points below that of a non-price reduced property in the <$200K range, while the difference was -12.1 percentage points in the $300K-$499K range



3Q ONLY

• A “Seller’s Market” is considered to exist when the inventory of properties for sale equals less than 6 months, a “Balanced Market” exists when inventory is in the 6-7 months range and a “Buyer’s Market” exists when inventory is above 7 months

• All condo/townhome properties priced above $200K currently exist in a Buyer’s market condition

• A given sub-market may be competing in very different market conditions than the overall market indicates, so it pays to know the conditions for the part of the market in which you are interested

SE Florida MLS Data for Condo/Townhome residence sales. Data is believed to be accurate, but is not warranted. ChartMaster Services, LLC



Year-to-Date

• YTD 2010 condo/townhome sales jumped to nearly 70% cash purchases, rising +24.5 percentage points from the same period in 2009



Year-to-Date

• 2010 Cash purchases of Condo/ Townhome residences were unevenly split between Distressed and Non-Distressed properties with Non-Distressed taking the larger share



Relevance to Sellers:• Lower Median sales prices in 3Q 2010, driven down by Buyer price resistance and availability of foreclosure and

short sale properties, requires Sellers to continue to price properties at levels below last year.

• The biggest concern for Sellers in 2010 remains the still-high inventory of properties for sale at all price levels, and especially distressed properties, which create pressure on Sellers to price attractively in order to secure buyers. Continued reduction of the listings inventory will be necessary before a sustainable sales price recovery can begin.

• The sluggish market will likely continue until the inventory returns to more normal rates – until then, greater care must be taken in pricing at, or below, current competition (Active listings) in order to sell within normal time periods. Sellers should pay particular attention to pricing their property competitively with currently active listings, rather than the traditional focus on those which sold, possibly several months ago under different market conditions. Attractive pricing and above-average property condition are the keys to a successful sale in any market, but are essential now.

Relevance to Buyers:• The decline in New Unit prices has reversed during 2010, possibly making resale units a better value compared to

new

• Properties that have been price-reduced and/or have been listed multiple times may indicate more highly motivated Sellers producing better values to Buyers of both resale and new homes as anxious Sellers become more willing to negotiate, selling at lower S/L percentages.

• Foreclosure and short sale properties also set up a more favorable negotiating environment for Buyers, causing sellers (lenders) to negotiate away more of their original asking prices.

SE Florida MLS Data for condo/townhome residence sales. Data is believed to be accurate, but is not warranted. ChartMaster Services, LLC

For more details or information: Call Caren Nealon with Keller Williams Realty @ 954.325.2300

Date post:	29-May-2015
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Fort Lauderdale Condo market stats 3 qtr 2010

Real Estate