Single-Family Home Prices Soar in Broward County; Supply Could Become Tight in the Near Future

Home prices in the housing market in Broward County, Florida are rising up fast but last December records show that single-family homes sold well while sales of condos was stagnant.

According to Miami Herald, based on the latest report from the Greater Fort Lauderdale Realtors the single-family market reflected high levels for resale at 1,476 sales in December and that is 6.6 percent higher than the last year. The increase in sales were a surprise knowing that the median price of a single family homes have seen a rise of 7 percent in value from last year to $305,000. The rise in sale however has raised an alert; Broward might see a shortage in supply of single-family homes available in the next few months.

Ideally, a steady market should have six months' supply of houses available, according to Reuters. Tight inventory will only raise prices higher. Sophia Kearney-Lederman, an economist at FTN Financial in New York, even said that this only intimidates first-time homebuyers as prices are rising quicker than wages.

Now, according to Miami Herald, Mike Nunziata of developer Central Communities believes that this too is bad news for the first-time homebuyers in Broward saying in an email, "After years of renting, young professionals are finally coming off the sidelines thanks to a stronger rebounding economy. Yet as demand grows and supply dwindles, prices will continue to rise - widening the gap of affordability for first-time homeowners that savvy developers will look to fill."

On the other hand, condos are experiencing a different trend. In December, condo sales are said to have fallen by 4.01 per cent from last year to 1,409. Median sales prices are also $500 less than last year at $131,000. And as developers continue to add more condo units, this could lessen resale of existing condo units.