Welcome 2015! January is behind us and a snowy winter is starting to pound the north. With the real estate market improving, we are seeing more owners looking to make a move. New listings for January were a near record of 48, compared to 29 for January of last year. Let’s take a closer look at the results in condominium re-sales for the first month of 2015 on Singer Island:
- There have been 17 condo re-sales on Singer Island for January 2015. The sold prices averaged 94.5% of list price.
- Year-to-date 47% of the condo re-sales were under $500K, with only 6% being in the $1 million plus range.
- The average Days-on-Market (DOM) for the older condos through January stood at 106 (approx. 3.5 months of inventory); and the newer condos have shown an increase to 243 days (8 months) on market.
- There were no short sales in January.
- The highest re-sale in January was Ocean’s Edge 903 for $1,262,500; and the least expensive sale was Phoenix Towers B-23-B at $335,000.
- As of the end of January, condo inventory increased to 170 units; a large increase due to the high number of new listings this month.
- Price per square foot of the older condos (built 1969-1989) increased to $283; and the price per square foot of the newer condos (built 2003-2008) was only $446 for January 2015.
2015 Real Estate Forecast – US Buyers Up, Foreign Buyers ???:
All of the real estate publications and pundits are touting a robust real estate market for 2015. As I mentioned in last quarter’s market update, mortgage rates remain low, employment is growing and consumer confidence is on the rise. One of the key factors fueling this trend is the steep drop in oil prices which has allowed the US consumer more discretionary income.
As one knows, real estate is local and while the drop in oil price helps most of the country; the areas that rely on foreign buyers are adversely impacted. Simply put, falling oil prices lead to a stronger dollar which in turn affects currency exchange rates.
One example is the Russian buyer. Over the last few years they have been very active in the South Florida area (including Singer Island) purchasing upper end properties. Economic sanctions and falling oil prices have put the ruble in a dramatic tailspin, which has left Russian billionaires scrambling. Viktor Vekselberg, Gennady Timchenko and Alisher Usmanov, along with another 17 of the nation’s wealthiest people, lost a combined $10 billion in the week leading up to the holidays, Bloomberg News reported.
The fall was largely associated with crude oil plunging to a five-year low following the United Arab Emirates announcement that OPEC won’t rein in production. This resulted in Russia’s central bank raising its benchmark interest rate overnight to 17 percent from 10.5 percent on Dec. 15.
Singer Island is home to a large concentration of Canadian owners and renters, would are future buyers. Just 15 months ago, in November of 2013, the Canadian dollar was on par with the US dollar. Today the Canadian dollar is down 20% and could go as low as 30%, depending on the movement of oil prices.
Although this has not stopped foreign buyers from purchasing, it has made them more deliberate in their decision process thus lengthening the overall sales cycle.
Our Market Update provides detailed information regarding condos newly listed, pending and sold on Singer Island for the current month.
Enjoy this information prepared just for you!
CALL us today if you are thinking about selling or buying! Your referral is our best compliment!
2015 has all the indications of being another great year for the Walker Real Estate Group; as the #1 Sales Team on Singer Island, our goal is to provide our customers a true concierge experience in all their real estate transactions. Trust, integrity and knowledge of the market is our number one priority.
For more information on specific condominium sales activity contact Jeannie at 561-889-6734 or email her at [email protected].