The 2017 real estate market is experiencing a shortage of homes listed for sale both in Fort Lauderdale and nationwide.
2017 residential real estate prices continued a steady climb in every state, except Alaska. Nationally, home prices were up 1.1 percent in June and rose 6.7 percent year over year as of the same month. In Alaska, prices fell 0.6 percent year over year. According to CoreLogic’s Home Price Index and Home Price Forecast, home prices are predicted to go up an additional 5.2 percent in the next 12 months.
Alaska represents a unique situation due to their economy’s heavily reliance on oil. With the slowing of oil markets, more residents than usual are leaving the state. Even though home prices are going down, it likely won’t attract a large number of new residents to the state.
Nationally, home price increases were due in large part to the lack of homes listed for sale. June 2017 represented the lowest number of homes listed for sale in the second quarter of a year in more than 30 years. That’s driven prices almost 50% higher than what they were in March 2011, the lowest point of the housing market that took place during the most recent financial crisis.
CoreLogic Chief Economist Frank Nothaft said recently in a statement, “the growth in sales is slowing down, and this is not due to lack of affordability, but rather a lack of inventory.”
According to a Realtor.com House Shortage Study, the largest group of homeowners are baby boomers. 85 percent of those surveyed indicated they are not planning to sell their home in the next year. That equates to approximately 33 million properties.
When those boomers who plan to stay put were asked why they didn’t want to sell, about 63 percent indicated their home met their needs. Other popular reasons included low interest rates (16 percent), recently purchasing their home (15 percent) and low property taxes (13 percent).
Whether you are a buyer or a seller, choose a trusted Realtor to help you navigate the Fort Lauderdale luxury real estate market. At Luxury Living Fort Lauderdale, we keep informed of the latest trends and can help you get the best deal possible, all while providing exceptional service!