As we move into the Holiday Season, the initial influx of seasonal owners has returned. They have generated a renewed interest in real estate activity. This interest is expected to slow for the next several weeks as owners return north to celebrate the holidays with family and local interest turns from real estate to family and friends. Moving to the end of 2013 let’s recap the latest stats for condominium re-sales on Singer Island:
- There have been 194 condo re-sales on Singer Island through November 2013. The sold price has averaged between 91% to 95% of list price.
- One hundred and twenty-nine of the sales were under $500K, which is approximately two-thirds (66%) of the total sales.
- The average Days-on-Market (DOM) for these sales has remained relatively unchanged from last month at 202 (little less than 7 months).
- There was one short sale in November.
- The highest re-sale in in November was the Beach Front 1402 for $875,000 ($359/SF); and the least expensive was Seadunes 6B for $185,000 ($123/SF).
- As of the end of November, condo inventory had remained relatively unchanged at 176 units.
- Price per square foot of the older condos (built 1969-1989) remained relatively unchanged at $239; and the price per square foot of the newer condos (built 2003-2008) decreased to $487.
Looking to Make a Move: Should You Rent or Buy?
In real estate this is the age old question, and depending on the economic environment the answer could go either way. As 2013 draws to a close, it’s fairly clear that the real estate market has gained strength: home sales are up, prices have firmed, foreclosures are down and mortgage rates remain close to record lows.
As we look towards 2014, we see a number of indicators that will help us answer the question:
- Interest rates – Make ownership more attractive. According to Standard & Poors, the 30-year mortgage averaged 6.1 percent between 2002 and 2007. Over the longer term (the last 40 years), the historic average has been 8.6 percent. In comparison, mortgage rates were near 4.25 percent in October 2013.
- Housing costs – While home prices have risen over the past year, they have haven’t reached the peaks seen in 2007. From August 2012 to August 2013, house prices rose 8.5 percent; however, home prices were still 9.4 percent below their April 2007 peak, according to the Federal Housing Finance Agency.
- Rental costs – While buying has become more attractive in recent years, rental costs have risen. Census Bureau data shows that the third-quarter vacancy rate was 8.3 percent – down from 11.1 percent in 2009. With fewer vacancies, rental rates are rising, and, at the same time, rental options have become more limited. When rental units are inexpensive and easily available, leasing can be an attractive choice. But as more people compete for rental units, rates tend to go up.
- Home appreciation – When the value of real estate goes up, owners benefit from higher prices and increased equity. Tenants, on the other hand, have no ownership interest in the units they occupy. If values go up, it’s good news for their landlords. “We don’t know that the value of residential real estate will always appreciate,” said Ray Brousseau, executive vice president with Carrington Mortgage Services, “But we do know that when home prices rise, the benefit goes to owners. We also know that only owners have the ability to reduce mortgage debt through amortization, the gradual reduction of mortgage principal over time. This means that over the long run, it becomes possible to own a home without any underlying debt. Homeownership, in turn, can be a way to save and has been an important source of household wealth for many generations.”
Whether you decide to buy or rent, the Walker Real Estate Group can assist you. We have the properties to fit you needs.
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!
2013 has been an excellent year for the Walker Real Estate Group; as the #1 Sales Team on Singer Island, our transaction volume for the first eleven months of the year has been over $27 million. Providing our customers a true concierge experience has been a major factor in our success.
From our family to yours, the best wishes for a peaceful and joyous Holiday Season, and a prosperous New Year.
For more information on specific condominium sales activity contact Jeannie at 561-889-6734 or email her at [email protected].
Recipients of the 2012 Ritz Carlton Residences© Singer Island Power Broker Award
Director – Master Broker Forum (Jeannie)