Residential Real Estate News.

Residential Real Estate News.

Despite the record median sales price of a Broward,Dade,Palm Beach and Lee County Single-family home rising between$322,000 to $345,000 in October, other factors must be considered. By Following the Multiple Listing Service it revealed the following — there were a lot more price reductions hitting the market as compared to price increases.

Over the past two months, there was an average of 13 asking price increases and 85 reductions for residential units per day. There were also 14 price increases and 96 reductions for vacant residential lots. Combined, that is an average total of 27 price increases and 196 price reductions within a 48-hour period.

Most likely, the owners of these residential properties had them listed under the assumption that price appreciation was going to continue at the same rate as experienced in the past couple of years. Most of these price reductions were from MLS-listed properties for sale in the Boca Raton,Pembroke Pines, Weston,Miramar, Cape Coral and Lehigh Acres markets. While these price reductions are an alarming trend to many, further study must be concluded before any future sale comparable predictions are made.

This recent MLS price activity in the pipeline shows our market may have reached a pricing threshold. But it is far too early to say that local housing prices will actually decline. One must remember there is a difference in a declining future appreciation rate, and actual housing prices coming down.