2016 real estate market was refreshingly normal
Looking back at the residential real estate market in South Florida last year, it seems like 2016 was for the most part pretty normal. That might seem like a negative, but in a volatile industry like real estate — and a year as crazy as 2016 — normal came as a welcome relief.
So while there were a few unexpected ups and downs, things were overall fairly stable. Prices continued to rise, but at an incremental, sustainable rate, and were up 4 percent year-to-date. Home sales were down following a robust 2015 market, and the inventory of homes for sale was at a mostly balanced level.
1. Inventory levels reflect a market equally good for buyers and sellers, but are trending up. In real estate, a six-month supply of inventory — which means the time it would take to sell all of the homes for sale at the current sales pace — is considered a balanced market, one that favors neither buyers nor sellers. Anything less than a six-month supply is typically a sellers’ market, and more than six months is a buyers’ market. Our inventory levels have been hovering around the six-month mark most of the year, though they began trending up in the fall as sales slowed down and we ended with a 7.9 months’ supply of homes for sale — moving into buyers’ market territory.
2. Home sales were up, but greater supply softened price increases. Here’s a look at how 2016 market-wide numbers compared to 2015. The figures below are from the Greater Fort Lauderdale REALTORS, Miami Association of REALTORS and REALTORS Association of the Palm Beaches (1) for Broward, Miami-Dade and Palm Beach counties, all property types, in all price ranges.
Properties sold: 93,952 in 2016 vs. 101,855 in 2015, a decrease of 7.8 percent
Average sales price: $343,875 in Dec. 2016 vs. $348,045 in Dec. 2015, a decrease of 1.2 percent
Property inventory: 46,653 in Dec. 2016 vs. 50,315 in Dec. 2015, a decrease of 7.3 percent
Days on the market: 80 days in Dec. 2016 vs. 84 days in Dec. 2015, a decrease of 4.8 percent
3. Much higher inventory had an impact on the luxury market. Overall, things look good, though sellers should make sure they’re pricing appropriately to be competitive. In comparison, the 2016 luxury market was a bit softer. A whopping 32 months’ supply of homes for sale in the $1 million and up price-point and fewer property sales meant homes stayed on the market longer. With that in mind, here are the stats (2):
Average sales price: $1,990,628 in Dec. 2016 vs. $2,594,099 in Dec. 2015, a decrease of 23.3 percent
Property inventory: 7,670 in Dec. 2016 vs. 6,690 in Dec. 2015, an increase of 14.6 percent
Days on the market: 155 days in Dec. 2016 vs. 149 days in Dec. 2015, an increase of 4 percent
About Empire Appraisal Group, Inc.
Establish in 2005, Empire Appraisal Group, Inc., is Broward County’s leading residential appraisal company as a result of their accurate and reliable appraisals, excellent customer service, and quick turn times. When working with an appraiser, integrity and professionalism are essential, and Empire Appraisal Group has a well-established reputation for providing the best appraisal experience. Daniel Lindeman, the Chief Appraiser, is considered one of the top property appraisers in Florida, with nearly 15 years of expertise and 8,000+ appraisals to his credit.
We ‘specialize’ in helping people who need appraisals for estate purposes, divorce, bankruptcy, FSBO’s and more.
We also work closely with realtors to help establish listing prices, these pre-listing appraisals ensures sellers get top dollar for their home.
In addition, to homes of all shapes and sizes, we also appraise condos, multifamily homes, boat docks, land, as well as specialty properties. No job is too big or too small, from manufactured homes to mansions.
Call Empire Appraisal Group directly with any questions concerning your real estate values at 561-441-9298. Also, check out our ‘Reviews’ page and see what others are saying about Daniel Lindeman and Empire Appraisal Group, Inc.
We provide residential appraisal services to all cities in Broward County: Parkland, Coral Springs, Coconut Creek, Dania Beach, Cooper City, Davie, Deerfield Beach, Fort Lauderdale, Sunrise, Hallandale Beach, Hillsboro Beach, Hollywood, Lauderdale by the Sea, Lauderdale Lakes, Lauderhill, Lighthouse Point, Margate, Miramar, North Lauderdale, Oakland Park, Pembroke Pines, Plantation, Pompano Beach, Sea Ranch Lakes, Tamarac, Weston, Wilton Manors