Ft Lauderdale Real Estate News 8/7/16
Great July for Fort Lauderdale Real Estate Market
by Jonathan Smoke
Chief Economist, Realtor.com
With all due respect to T.S. Eliot, July, not April, has been the cruelest month – at least when it comes to the post-recovery real estate business. More often than not, smack in the middle of the booming summer months we’ve found ourselves coming to grips with some kind of big-time glitch in the economy or consumer confidence (U.S. debt ceiling fight! Greek bankruptcy! U.S. government shutdown!), or mortgage rates that move up substantially.
But this July was different. There was no summer surprise – but there were a variety of factors favoring those looking to buy a home.
Take a look at these stats for July:
Highest consumer confidence for a July since 2007
Highest nominal home prices for a July in history
Likely the lowest July unemployment figures since 2007 (we’ll know for sure on Friday)
Lowest July mortgage rates ever
We had 1% more homes available for sale in July compared with June. That was likely the peak for the year for inventory. Meanwhile, we estimate demand by those looking to buy a home rose 8% in July from June.
Last year was the best since 2007 for home sales. In the first half of 2016, we’ve seen a 5% increase over the first half of 2015. Based on our view of real-time inventory and demand, July should see that growth continue.
What are the biggest changes we’re seeing in demand? We stay tuned to what consumers are experiencing through regular surveys of our users.
Millennials aged 25 to 34 continue to pick up momentum. They are already the largest buying cohort, but they’re just starting to flex their collective home-buying muscle. Last July, 75% of realtor.com®’s 25- to 34-year-old users were looking to buy a home. This July, that percentage increased to 81%.
We’re also seeing more buyers report they are getting overbid by other buyers. The biggest jump in the “I’m being over bid” quandary is being reported by 25- to 34-year-olds. Last July only 1.7% of 25- to 34-year-olds reported that being overbid was a buying impediment; this year, that figure climbed to 8%.
The downside to historically low mortgage rates is...