Still A Great Time To Buy Broward County
Excuses – I Don’t Want To Hear Them
I admit it does not make sense for everyone to own a piece of the real estate pie. It sure does make sense for most of us though.
Those of you sitting on the fence that have the ability to purchase but have not done so because you have looked for months or even years and you have not been able to “find the right home”, I want you to stop making excuses. You are going to miss out…I promise.
Prices are not going down again anytime soon.
No I don’t expect you to just take my word for it.
Let’s take a look at the numbers.
Current Broward Prices Still Lower Than 2005!
recently had the privilege of sitting down and listening to EWM’s president Ron Shuffield review the Miami-Dade and Broward County quarterly market reports, wherein part of the data presented and analyzed was a 10 year history reminiscence of where we were and where we are.
Why did he bother going back 10 years on a 2015 quarterly analysis?
The past decade from a national, state, county, and even more localized perspective in real estate has been a trying one. 2005 was the year just before the entire debacle started with ridiculously inflationary housing appreciation and downright fraudulent mortgage practices. 2005 was still a healthy real estate market.
The numbers below are based on a study of single family homes only. Condos and townhomes are not included, but I did divulge information on that particular marketplace offering here.
Some of the telling numbers in Broward County:
- the average price per square foot of sold homes in the 2nd quarter of 2005 was $235 vs. $175 in 2015 2nd quarter (that’s $470,000 for a 2,000 square foot home then vs. $350,000 now)
- the average sold price per square foot of sold homes in the 2nd quarter of 2005 was $476,000 vs. $363,000 in 2015 2nd quarter
- the average price of homes for sale in the 2nd quarter of 2015 was $967,000 vs. $743,000 in 2015 2nd quarter
- the average number of homes for sale in the 2nd quarter of 2005 was 2,497 vs. 5,184 in the 2nd quarter of 2015 (that’s more homes available for sale at lower prices!)
- the median price in the 2nd quarter of 2005 was $367,000 vs. $294,000 in 2015 2nd quarter
- homes were on the market for an average of 39 days before entering into contract in 2nd quarter of 2005 vs. 68 days in 2nd quarter of 2015 (lower prices, more availability, and on the market for longer meaning more opportunity for a diversity of choices in the home selection process)
Months Of Supply
In the 2nd quarter of 2015 we have 3.5 months of supply of inventory.
Yes, there are more homes available as previously stated in this quarter than the same quarter a decade ago, but the demand is higher and there are more pended and closed sales which equates to a lower supply.
As a matter of fact there has been a 12% increase in sales in this quarter from same quarter last year. That’s a huge jump.
Let’s Translate This To How It Impacts You
A 2,00o square foot single family home in 2005, on average, would have cost you $470,000:
- 20% down payment = $94,000
- $376,000 mortgage @ 30 years fixed @ 5.5% interest rate = $2,135 principal & interest monthly
- estimated property taxes = $700 monthly
- estimated insurance = $588 monthly
- estimated monthly payment = $3,423
A 2,000 square foot single family home in 2015, on average, will cost you $350,000:
- 20% down payment = $70,000
- $280,000 mortgage @ 30 years fixed @ 4.25% interest rate = $1,377 principal & interest monthly
- estimated property taxes = $500 monthly
- estimated insurance = $438 monthly
- estimated monthly payment = $2,315
Am I getting through yet?
Here’s The Full Detail On The Above Numbers:
Real estate is local.
Everyone has different items on their checklist in terms of the real estate investment they want to take on in their lives.
I study the markets daily.
I work and play in Broward County. I am a property owner in the City of Fort Lauderdale.
I don’t think that anyone that is qualified to purchase a home and does not have an excellent reason not to own should rent.
Thanks for reading my blog.