Singer Island Market Update – 3rd Quarter 2015

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“Keeping your finger on the pulse of the market is critical when looking to buy or sell your home.” The Walker Real Estate Group brings their customer base “Just the Facts” enabling them to make knowledgeable decisions with regard to the real estate world around us…”

Here we are nine months into 2015; although the temperatures have not yet started to cool, the car carriers are arriving daily. The year has seen a steady stream of sales activity compared to the last few years. There were 157 condominium re-sales on Singer Island in the 1st nine months of 2015, a 5 percent increase in the number of transactions as the same period in 2014; but more impressive is the 31% increase in sales dollar volume.

Let’s recap the 1st nine months of 2015 in condominium re-sales on Singer Island and the comparison with 2014:

  • Approximately forty-eight percent of the sales (76) were below $500K; in 2014, 59% of the sales were below $500K.
  • The average Days-on-Market (DOM) for these sales has remained relatively steady at 168 (approximately 5.6 months) compared to 165 days for this period last year.
  • The highest re-sale this quarter was Ritz 1603A at $3,350,000; a Walker Real Estate Group exclusive listing.
  • There were no short sales in the 3rd quarter.
  • Condo inventory ended the quarter at 162 units, on average for the year.
  • Price per square foot of the older condos (built 1969-1989) ended the quarter at $281, a 12% increase over the same period in 2014. The price per square foot of the newer condos (built 2003-2008) finished at $620, a 13% increase compared to the 3rd quarter of 2014.

CLICK HERE: Singer Island 3rd Quarter 2015 Market Update

CLICK HERE: Singer Island September 2015 Market Update

The Strong Dollar vs. Foreign Real Estate Investors

The strengthening dollar has become a double edged sword for foreign nationals wanting to own a home in the U.S. Those looking to buy have to deal with the lopsided currency exchange where they are losing a high percentage of their purchasing power. On the other hand, if the foreign national wants to sell a US property, they can make a windfall return just on the currency exchange rate alone.

During the last decade when the US real estate market was in the doldrums, it was the foreign investor who came in with their cash purchasesUS dollar-foreign currency and helped prop up the market and contributed to the rebound.

According to Zillow, U.S. real estate values are up about 5% in dollar terms from this time last year; representing a leveling off of growth after a strong showing the previous two years. Unfortunately for foreign investors, it is a very different story.

As the accompanying chart indicates, For a Russian investor using rubles, for example, the price of Miami real estate was twice as high in February as it was a year earlier, according to Zillow data. A resident of the Eurozone buying in New York City faced a 24% price increase during that time, and a Canadian now has to pay 25% more to buy a vacation home in the Phoenix area.

Canadian buyers, who make up a sizable portion of the Singer Island community, are having an equally difficult time. In 2014, they accounted for 19% of all international transactions, according to the National Association of Realtors. That figure is down from 23% in 2011, when the Canadian dollar’s exchange rate was more favorable. Today, the Canadian dollar is only worth 75% of its U.S. counterpart, placing 25% premium on any U.S. purchase they make whether it’s in real estate or retail merchandise.

For those foreign nationals looking to sell, the time couldn’t be better. A condo on Singer Island illustrates the example. Even if the condo’s selling price did not rise over the past year, it went up in value for Europeans thanks to the money exchange rate. If it was worth $300,000 in May 2014, the euro exchange rate overseas was 218,000. That same unit today is worth 277,777 euros, or an increase of 27 percent in slightly more than one year.

Should the U.S. dollar continue strengthening, one will see foreign sales out-pace foreign purchases in this upcoming Season.

The Walker Real Estate Group keeps an eye on the pulse of the market and informs its customers of the trends so they can make better decisions whether it’s buying, selling or just renting their Singer Island property. We are the Number One source for “What’s Happening” on the Island!

2015 has become another great year for the Walker Real Estate Group; surpassing 2014.  As the #1 Luxury Sales Team on Singer Island, providing our customers a true concierge experience has been a major factor in our success. Trust, integrity and knowledge of the market is our number one priority.

Call US today for a free confidential interview!

For more information on specific condominium sales activity contact Jeannie at 561-889-6734 or email her at [email protected].

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