Where has the year gone? Thanksgiving is behind us and the Holidays are here. One more month and we can wrap up the year. Real estate is coming back strong on the island. The inventory is low and the sales prices are increasing. Rentals for the coming season have been extremely strong, in fact, inventory is almost non-existent. If this is any indication of the coming sales season, then it too should be very strong. Time will tell! As November 2014 draws to a close, let’s recap the latest stats for condominium re-sales on Singer Island:
- There have been 171 condo re-sales on Singer Island through November 2014. The sold prices averaged 93.2% of list price.
- Year-to-date 59% of the condo re-sales were under $500K, with 27% being in the $1 million plus range.
- The average Days-on-Market (DOM) for the older condos has remained constant at 150 (approx. 5 months of inventory); and the newer condos have shown a decrease to 222 days (7.4 months) on market.
- There were no short sales in November.
- The highest re-sale in November was Ocean’s Edge 1701 for $2,350,000, and the least expensive sale was Cote D’Azur 2-103 at $190,000.
- As of the end of November, condo inventory increased to 153 units.
- Price per square foot of the older condos (built 1969-1989) remained constant at $253; and the price per square foot of the newer condos (built 2003-2008) increased slightly to $534.
2015 Real Estate Forecast –“Better Times Ahead”:
The National Association of Realtors (NAR) Chief Economist Lawrence Yun presented his economic forecast for 2015 at the annual NAR conference last month in New Orleans. In summary- existing-home sales are expected to be higher next year, and prices will remain at a healthier level of growth that benefits both buyers and sellers.
Yun said “The improving job market has consumers feeling more confident, and the rebound in home prices is building household wealth for homeowners and giving them the ability to sell after waiting the last few years.” He expect existing-home sales to end 2014 at 4.9 million, slightly below 2013 sales. However 2015 sales should see an eight percent increase over 2014; and the national median existing-home price rise 4 percent according to Yun.
First-time buyers are struggling due to tight credit standards, an increase in multi-generational households and student debt contribute. This group has hit a low not seen since 1987.
Director of the Federal Housing Finance Agency (FHFA) Mel Watt said many creditworthy borrowers have enough income to afford monthly mortgage payments, but not a large down payment and closing costs, and FHFA will offer loans with as little as 3 percent down. Because down payment size is not the best indicator of a borrower’s ability to repay, the enterprises (Fannie Mae and Freddie Mac) will also evaluate the full financial picture of a borrower, including credit histories and other compensating factors.
Yun expects inflationary pressure to force the Fed to raise short-term rates in the first half of 2015. He projects that mortgage interest rates will increase to slightly below 5 percent next year and reach 6 percent in 2016.
“The impact of rising interest rates on affordability will be minimal as long as job creation keeps pace,” Yun said. “Furthermore, if the credit box slowly begins to open up, that will also mitigate the impact of rising rates.”
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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2014 has become 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].