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Howard's Report on the Weston Market 3rd Qtr. 2005
By Howard J. Willis *
The Weston area residential real estate market has now seen a sustained increase in the inventory of homes and condominiums for sale while home sales have slipped. Earlier this year, we reported that over the last two years the area home market had experienced a steady decline of homes on the market, resulting in a range of about one-half to 1½ months of supply.
This limited inventory environment resulted from the Weston’s build-out of Savanna with only the Isles of Weston still in it’s opening phase along with a surplus of buyers supported by low mortgage rates. This in turn was a major factor in the spike in housing prices in our area. In the third quarter of this year we have seen this seller’s market begin to turn to a more balanced environment.**
By September, when we compare to the same period in 2003 we saw a 45% increase in supply (homes for sale) and 30% decrease in demand (homes sold). This trend continued into October when we reviewed the month’s partial numbers.
Supply Compared to Sales
In July/Aug/Sept of 2004 there were a total of approximately (730) home sale closings or an average of (243) per month. The average monthly inventory of homes available was (220) properties, or an average inventory of just under a month. Compared to the same period in 2005, Weston had an average inventory of (421) homes per month for sale with (171) closings per month, resulting in an average inventory of about two and a half months. It is interesting to note that while inventory has increased, supply is still significantly under the September, 2003 level of (470) homes.
All Single Family, Condominiums & Townhomes
July August September
’04 ’05 % Chg ’04 ’05 % Chg ’03 ’04 ’05 % Chg
Homes For Sale
256 243 -11% 215 262 +22% 470 189 286 +45%
Closed Sales
234 188 -20% 282 175 –18% 209 214 150 –30%
Single Family
July August September October
Homes For Sale
- - - 263
Pending Closing
- - - 139
Closed Sales
117 98 81
Prices
Single Family - Homes For Sale: 263 (as of 10-24)
Price Range & No. Homes
$15 Million + 1 $3 – 4 Million 6 $700,000 – 999,999 59 $400,000 – 499,999 45 $ 5 – 6 Million 1 $2 – 3 Million 11 $600,000 – 699,999 34 $300,000 – 399,999 25
$ 4 – 5 Million 5 $1 – 2 Million 26 $500,000 – 599,999 50
Other Markets
When we examine other markets, the supply and demand trend is similar with some reflecting even higher supply levels. Here’s a snapshot of September numbers: Dace County Condo and Townhomes: 5.4 months; Broward County Condo and Townhomes: 3.4 months; Broward County Single-Family: 3.3 months; Davie Single-Family: 3.2 months; Miramar/SW Broward: 6.9 months; Hollywood East Single-Family: 5.2 months. **
* as of 10-23-05 ** some real estate analysis consider 6 – 8 months inventory as a balanced market.
Howard Willis is Broker/Associate and a co-owner of Keller Williams Realty South- West Broward. He and his partner Allegra are principals in the Allegra & Howard Willis Real Estate Group. Howard has a law degree and specializes in providing real estate consulting 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 @thewillisgroup.com. Learn more about Allegra and Howard and the Willis Group at www.thewillisgroup.com
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