Welcome 2016 to Singer Island! January is behind us and a snowy winter has already pounded the northeast. Fortunately, Punxsutawney Phil did not see his shadow this year, thus calling for an early spring. Season is in full swing with crowed stores, restaurants and parking lots.
Real estate wise, we have begun 2016 a little behind last year. Sales for January were less than half those of a year ago; even pending/contingent sales are below last January levels. New listings for January were also cut in half. Hopefully 2016, being a presidential election year, will re-invigorate itself quickly in the coming months.
Let’s take a closer look at the results in condominium re-sales for the first month of 2016 on Singer Island:
- There have been 8 condo re-sales on Singer Island for January 2016. The sold prices averaged 93.8% of list price.
- Year-to-date 75% of the condo re-sales were under $500K, with only one sale being in the $1 million plus range.
- The average Days-on-Market (DOM) for the older condos through January stood at 97 (approx. 3 months of inventory); and the newer condos have shown an increase to 253 days (8 months) on market.
- There were no short sales in January.
- The highest re-sale in January was The Resort/Marriott for $1,750,000; and the least expensive sale was Dunes Towers B-1-C at $235,000.
- As of the end of January, condo inventory increased to 198 units; a 6% increase from December due to fewer sales offsetting the new condo listings.
- Price per square foot of the older condos (built 1969-1989) increased to $321; and the price per square foot of the newer condos (built 2003-2008) increased to $557 for January 2016.
What will the Florida Real Estate Market Look Like in 2016?
“Florida is positioned to become one of the hottest spots in the country with rising demand, positive gains in recovery, really good fundamentals and positive momentum,” said Jonathan Smoke, chief economist of Realtor.com®. He said 2015 was a good year and 2016 looks to be similar. With rents rising faster than housing prices, there is a potential for an onslaught of would-be home buyers in the spring through summer months.
The climb out of the recessionary period of 2008 – 2009 has been slow but steady. The dollar is strengthening and the labor market improving.
The 2016 Realtor.com® forecast sees existing home prices appreciating 3 percent; existing home sales growing 3 percent to 5.4 million; new home sales growing 16 percent to 580,000; and housing starts increasing 12 percent.
As we have mentioned in previous communications, the baby boomers and millennials will be become a larger part of the clientele in 2016 and beyond. The boomers are still a huge part of the market as they look to retire, relocate or downsize, but an even bigger wave of millennials eager to become homeowners is the market’s future driving force.
“2015 was a very good year for both home and condo sales,” said Dr. Brad O’Connor, chief economist for Florida Realtors, who noted that as of December, statewide median prices have increased (year-over-year) for 49 months in a row. “The estimated Florida shadow inventory is slowly but surely disappearing. We’re down to about 200,000 non-listed but potentially in foreclosure homes (the so-called shadow inventory). Negative equity loans are down to below 20 percent.” And Florida’s real estate sector will continue to experience growth and positive momentum in the coming months, he added.
“We expect home sales to increase 8-10 percent in 2016, while home prices are likely to rise about 5 percent,” O’Connor said.
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!
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2016 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 are our number one priority.