The residents of Fort Lauderdale have recently become the beneficiaries of an overdue boost in home equity. Accordingly, home values have increased significantly since they last bottomed out in 2011. The increase in property values helped to remove many homeowners from underwater mortgages, as the rate of delinquent mortgages dropped 12% since this time last year. More homeowners in South Florida still owe more than what their homes are currently valued compared to the national average; however, the Fort Lauderdale housing market received a positive outlook thanks to increased home sales for the last three years. For what it is worth, the Fort Lauderdale housing market is heading in the right direction.
The current median home price in Fort Lauderdale is $270,000, which is above the national average of $212,267. Over the last year, homes in Fort Lauderdale have appreciated at a rate of 7.6%, which is 3% higher than the national average. More impressively, houses in the region have appreciated 44.9% in the last three years, nearly doubling the national average of 25.8%. The gains witnessed in the last three years have played a major role in removing Fort Lauderdale from the post-recession price weakness.
Owners that were fortunate enough to have purchased three years ago experienced the largest gains in equity. Accordingly, the average equity accrued by those who purchased in 2011 is $92,099. Fort Lauderdale homeowners accrued nearly $40,000 in equity more than the rest of the country in the same period. Even homes that were purchased within the last year have gained an average of $23,243 in Fort Lauderdale. That number is almost double the national average of $12,731.
Unfortunately, the job market is not in a position to currently boost the housing market. With an unemployment rate of 6.3%, Fort Lauderdale trails behind the national average. On a more encouraging note, however, the unemployment rate is trending in a good direction (it is lower than last year’s 7.9%). Job growth should continue for the foreseeable future, as experts predict the job market to increase by 3% in the next year. In fact, the rate in which jobs are being made is higher than the majority of markets on a national level. At its current rate, job growth should continue to drive local supply and demand.
Construction is on the rise relative to last year, suggesting that the local inventory has stabilized. While new construction is the traditional driver of supply in real estate, foreclosures and short sales now have a strong impact on inventories, particularly at the local level. Rising inventories, through construction or distressed sales, place downward pressure on the median home prices.
Housing affordability in the Fort Lauderdale market is strong from a historical standpoint, but slightly weaker than the first quarter of 2014. Fort Lauderdale is more affordable than most markets, as homeowners allocate an average of 12.1% of their income to mortgage payments, whereas the rest of the nation spends about 14.9% of their income on principle payments
According to Zillow, the percent of delinquent mortgages in Fort Lauderdale is 16.0%, which is higher than the national value of 6.9%. The percent of Fort Lauderdale homeowners underwater on their mortgage is 19.8%, which is lower than Miami-Fort Lauderdale Metro at 21.9%.
Popular neighborhoods in Fort Lauderdale include Victoria Park and Imperial Point, with average listing prices of $569,866 and $249,457.
See more at: http://www.fortunebuilders.com/fort-lauderdale-real-estate-market-trends/