When I analyzed the Oakland Park real estate market last quarter, I found that the number of sales had pretty much remained the same compared to the last quarter of 2020. What had changed was the price at which homes were selling. A dwindling inventory, coupled with a very high demand, and low interest rates, sent prices soaring to heights never seen before.
The first quarter of 2022 compared to the first quarter of 2021 exhibited the same trend as the comparison for the last quarter of 2021/2020: number of sales remained the same, but the price of homes had skyrocketed. This upward trend is so significant it has many asking, how high can this market go? Let’s take a look and find out.
From 2021 to 2022 sales went up a mere 0.7%. The average rise in home sale prices was 20.7% or $60,190 with a median rise of 14.6% or $42,000. Looking at the market as a whole, it is clear prices rose except for condos. The median price of condos went up nearly 11%, 10.9% to be exact. The average price of condos went down $870, with a negative average price of -0.4%. The most significant rise year over year was in the scarcest but most coveted product, single family homes.
|ALL SALES||# of Sales||Average Price||Median Price|
|Y/Y Difference||+ 2||+ $60,190||+ $42,000|
|Y/Y Percentage Difference||+ 0.7%||+20.7%||+14.6%|
Single families became a highly coveted product during the pandemic. Many people began to work from home and for this reason sought out bigger houses in which they could live, work and play. In addition, there was increased immigration from other states, which led to a quickly dwindling inventory as buyers vied for houses.
As economist Adam Smith laid out in his iconic work The Wealth of Nations, when supply is low, and demand is high prices will go up. And up they went. Single family homes went up on average + $117,999! The median value went up too but not as significantly rising +$90,000. In plain English, in one year, in general, home values went up over 25%.
|Single Family Home Sales||# of Sales||Average Price||Median Price|
|Y/Y Difference||+ 1||+ $117,999||+ $90,000|
|Y/Y Percentage Difference||+ 0.7%||+ 31.6%||+ 25.7%|
Compared to single family homes, condo sales were much less impressive. In fact, on average there was a slight downturn in condo values on average while median values went up +10.9% .
|All Condo Sales||# of Sales||Average Price||Median Price|
|Y/Y Difference||+ 1||– $870||+ $17,750|
|Y/Y Percentage Difference||+ 0.8%||-0.4%||+ 10.9%|
As the upward trend continued this last quarter, people are asking themselves, how high can it go? Based on recent news, we may be reaching that peak. There are signs of a downward trend lurking in the background. I will analyze these trends in an up and coming article, so stay tuned. In the meantime, keep your eye on the market because it is the only way we will know how high it can go.
EDITOR, PUBLISHER, WRITER, PHOTOGRAPHER, REALTOR®
Désirée Ávila has called Oakland Park her home for over 33 years. In addition to publishing LivingInOaklandPark.com, Désirée has been featured in print publications, locally and abroad. Désirée was an award winning teacher for 10 years and has a doctoral level education in Educational Technology. She is currently a licensed Florida Realtor® and is committed to a high-level of professionalism.
Désirée consistently professionally develops herself and has earned several different professional designations and certifications in real estate including the PSA, e-Pro, AHWD, SRS, ABR, and SFR. She was also awarded the C2EX, Commitment to Excellence award by the National Association for Realtors (NAR). This award is given to Realtors® that distinguish themselves for their commitment to excellence in the real estate industry.
She is esteemed by her real estate colleagues and has consistently received 5 star reviews from her clients. Her philosophy about real estate is that being a Realtor® is a way of teaching and helping people, and in the process a real estate transaction may occur, that is to say her foremost priority is and has always been about helping others.
She is dedicated to her hometown of Oakland Park and works consistently on building and fostering a strong community. She is passionate about photography and loves to read books about history ; the more detail the better! In addition to English, Désirée is fluent in Portuguese, Spanish, French and Italian.
Check out her real estate websites:
Search for New Construction Homes with Désirée : www.IWantToBuyNewConstruction.com
Visit her real estate blog at www.DesireeRealtor.com