New Signs of Life in Fort Lauderdale Home Sales

The Fort Lauderdale housing market along with the rest of South Florida may be turning the corner, as Existing Home Sales increase in March.  Existing Home Sales are completed transactions including single-family, townhomes, condominiums and coops.  Nationally, Existing Home Sales rose 6.8% from February and are 16.1% higher than a year ago.  Locally, Broward County home sales were up 8% from a year ago, while the median price fell 3% during that time.

So, where does the Fort Lauderdale Housing Market go from here?  Some industry analysts are concerned the housing market may run out of steam when the Homebuyer Tax Credit ends April 30th.  Though the Homebuyer Tax Credit Program has been considered a resounding success, it hasn’t had as much impact on housing sales since the extension.  Since inception, claims for the Tax Credits in Florida have exceeded 128,000 through February 2010 for almost a billion dollars.

This stimulus has provided a broad-based stabilization in home prices and sales.  Foreclosures and short-sales have been steadily feeding into the existing inventory, but are being absorbed at a manageable pace.  With the stabilization of home values, we should see a revival of home buying confidence in the Fort Lauderdale Housing Market, even as the Tax Credit impact disappears.

One recent bright spot for the Fort Lauderdale Housing market has been condominium sales.  Broward County led the State of Florida in condominium sales last month with 1140 sales reported.  This was the largest number of condominium sales in the Fort Lauderdale Housing  market since April of 2005.  Foreign investors looking for bargains have been very active in purchasing Fort Lauderdale condos, as prices are now at extremely attractive levels and affordability is the best its been in years.  Fort Lauderdale Realtors are reporting that condominiums are being purchased mainly for cash as soon as they come on the market.

Housing Analysts have recently upgraded their forecasts for the South Florida and Fort Lauderdale Housing markets.  They sight recent efforts by the Obama Administration to address the nation’s housing problems and a plan to reduce principal balances on mortgages to eliminate some of the negative equity to give homeowners an incentive to stay in their homes. 

The South Florida and Fort Lauderdale Housing markets should continue to stabilize as unemployment wanes and consumer confidence strengthens.  The South Florida and Fort Lauderdale Housing markets probably have a two year backlog of so called, “Shadow Inventory” or distressed property that will be added to the available inventory.   Fort Lauderdale homes for sale will remain at affordable prices for the next year or two until this inventory is absorbed.

The Fort Lauderdale Housing market and recovery will lag many other areas of the country due to the severity of Florida’s foreclosure crisis.  Expect slow and steady progress ahead, as today’s affordable Fort Lauderdale Housing prices will continue to attract vacation home buyers as well as retirees.  The largest generation in our nation, ”The Baby Boomers”, will be showing up in droves to purchase their “little piece of paradise”.  The Fort Lauderdale Housing market is beginning to show a glimmer of light that points to a brighter future for Florida.