2004 Year-End Update: Weston Market

Year-End Update: Weston Market With a Special Section on the Weston Area Residential Rental Market By Howard J. Willis

* The Weston area residential real estate market continues to experience declining inventory of homes and condominiums for sale as average prices continue to climb. Over the last two years the area home market has experienced a steady trend of declining numbers of homes on the market, resulting in roughly a 69% turnover rate or about 1 ½ months of supply. In (12) months inventory fell from September ‘03’s (470) homes for sale to (173) homes listed in September ‘04. In this report we will see the comparative 4th quarter statistics, review the Weston area residential rental market and examine a rental investment case study. As single-family and condominium supply has dropped, the residential rental market could play a key role in future pricing trends. In mid-January there were more residential rentals available (153) than single-family and condominium homes were for sale (135). Supply Compared to Sales In Oct/Nov/Dec of 2004 there were a total of approximately (311) home sale closings or an average of (104) per month. The average monthly inventory of homes available was (150) properties, or an average turnover of inventory of about 69%. Compared to the same period in 2003, Weston had an average of (421) homes per month for sale resulting in 41% of the inventory being sold or (171) closings per month. This is a -64% decrease in available homes and a -39% decrease in average monthly sales. Prices The average home sold price per square foot has increased as you would expect. When we compare November ‘04’s average of $189 to November ‘03’s $151, we see an average increase of $38 per square foot or +25%. The median** price of sold homes again taking November as a comparison, increased from Nov/’03’s $275,000 to November ‘04’s $379,000 or a +38% rise in median prices. A random review of closed sales in the 4th Quarter indicated the following prices per square foot: Windmill Ranches @ $383 , $366, $257; Weston Hills: Water Oak @ $209; Riviera @ $251; Poinciana @ $317; Royal Palm @ $300; Provence @ $264; Pinehurst @ $240; Laurels @ $230; Montclaire @ $231; Eagle Run @ $203; Jardin @ $213; Meadowood @ $208; Harbor View @ $201; Victoria Pointe @ $183; Edgewater @ $199; Hunter’s Pointe @ $172; Others - Savanna Lakeside @ $197; Isles of Weston @ $207; Pelican Landing @ $200 to $220; Mallard Landing @ $213 to $233; Palm Island @ $201; Vista Meadows @ $197; Hampton Lakes @ $176; Country Isles/Captiva @ $163; Emerald Courts @ $156; Bonaventure Lakes @ $146. The Weston Rental Market A survey was prepared of the available residential properties on the market in the greater Weston market area. Approximately (153) properties were available in mid-January representing a diverse range of prices and communities. Asking prices per rental square foot (SF) ranged from a low of $.87/SF on Racquet Club Rd. in Bonaventure to a high of $1.39/SF in Windmill Ranches and Oakbrook. While it is difficult to measure, actual rented prices could range from a low of .78 to .83 for a smaller unit to $1.25 up to $1.32 in a Weston Hills or Windmill Ranches home. When viewing the single family/condo rental inventory by community, there was a high of (14) homes for rent in Savannah to a low of zero to one in a number of other communities. Approximately (204) properties were available in mid-August ’04, reflecting quite a bit of absorption in five months for a decrease of -25% in the rental supply. Howard Willis is a realtor affiliated with EWM Realtors and Golf and Home Real Estate marketing. He and his partner Allegra are principals in Allegra & Howard Willis Real Estate Group. Howard has a law degree and specializes in providing real estate sales and services to premium homes, condominiums and commercial real estate owners and buyers. Call with your questions and comments to (954)949-0444 or to howard@thewillisgroup.com. Learn more about Allegra and Howard at www.thewillisgroup.com