With the presidential election behind us, we hope to see some normalcy return to the Singer Island real estate market. Uncertainty causes volatility in the financial markets which in turn tends to disrupt the real estate market. With the robust seasonal rental market and recent rise in the financial markets following the election, we are anticipating a corresponding uptick in the 2017 real estate market. To-date, 2016 has been a disappointment compared to 2015. Singer Island re-sales are down 6% from this time last year. Million dollar plus condo re-sales are at 11% of total sales compared to 19% in 2015. The older, lower priced condos account for 84% of the sales this year. Consumer sentiment will be key to the coming year.
Let’s take a closer look at the results in oceanfront condominium re-sales through mid-4th quarter 2016 on Singer Island:
- There have been 165 condo re-sales on Singer Island through mid-November 2016; a 6% decrease from this time last year. The sold prices averaged 93% of list price.
- Year-to-date 60.5% of the condo re-sales were under $500K, with only 11% being in the $1 million plus range.
- There have been no short sales year-to-date.
- The highest re-sale in the quarter was Capri of Singer Island 16S for $872,250; and the least expensive sale was Phoenix Towers A-6B at $235,000.
- Current condo inventory is holding at 173 units.
- Price per square foot of the older condos (built 1969-1989) remained steady at $294; and the price per square foot of the newer condos (built 2003-2008) decreased to $525 through mid-November 2016.
October Home Purchase Sentiment Index
The Fannie Mae Home Purchase Sentiment Index™ (HPSI) distills results from its consumer-focused National Housing Survey™ (NHS) into a single, monthly, predictive indicator.
“The Fannie Mae Home Purchase Sentiment Index provides the market a single number to track consumer attitudes focused on the housing market,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Utilizing our National Housing Survey, the only consumer sentiment survey of its kind focused on housing, the HPSI offers insights regarding current and future-looking housing market outcomes and complements existing data sources to inform housing-related analysis.”
The HPSI dipped 1.1 points to 81.7 in October, the third decrease in as many months. Four of the six components that comprise the HPSI fell during the month. Overall, the HPSI is down 1.5 points since this time last year.
- The percent of respondents who said that it is a good time to buy a house rose to 63%, rising 2 percentage points from last month’s all-time survey low.
- Those who say it is a good time to sell rose 2 percentage points to 47%. The percent of respondents who say it is a bad time to sell also increased to 44% .
- The percent of respondents who said that home prices will go up over the next 12 months fell to 47%. The percent who said that home prices will go down rose to 9%.
- The share who expect mortgage interest rates to go up in the next 12 months rose 3 percentage points to 54%. The share who say mortgage rates will go down remained the same at 5%.
- The share of respondents who say they are not concerned with losing their job rose to 83%, while the share of respondents who say they are concerned with losing their job fell to 16%.
- The share of respondents who say their household income is significantly higher than it was 12 months ago fell to 24%, while those who say it is significantly lower fell to 12%.
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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We are hopeful for another good year for the Walker Real Estate Group. As the #1 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.