Unprecedented Demand Keeps Inventory at Historic Lows
Listing inventory continues to tighten as we experienced a historically high number of sales in the month of March. Supply has consistently tightened since last July when our South Florida market began its remarkable rebound from the pandemic shutdown. The problem with our market is not necessarily on the supply side since new listing inventory over the past year has been consistent with previous years. What we are experiencing is unprecedented demand in every market segment from 2 bedroom condos on the beach to multi-million dollar Intracoastal estates.
March 2021 real estate sales reached a record high 990 units sold, up over 68% from the same month last year. Meanwhile, inventory levels have tightened to only 2,652 available units, down 32% from March 2020.
The South Florida communities included in this report are located in Northeast Broward County and include Fort Lauderdale, Pompano Beach, Lauderdale-by-the-Sea, Lighthouse Point, Hillsboro Beach, Deerfield Beach, Oakland Park and Wilton Manors.
High Absorption Rates Now Affect All Market Segments
When our dramatic rebound began last July the segment with the highest demand was single family homes under the median of $1 million. This was driven by pent up pandemic demand, low interest rates, millennial and first time home buyers, and a fairly typical summer market. Attention quickly turned to the higher end waterfront single family homes as buyers from around the country raced to secure more space, waterfront views and a place to keep their boat in the back yard. By early Fall 2020 the only segment that still had normal inventory levels was the condominium market. As we approached the winter months demand for condos returned as single family prices increased and more second home buyers came south for the winter. Pressure on every one of these segments has continued and has left us with record low inventory in every segment of our market.
Median list prices in Northeast Broward County have reached $1,500,000 for single family homes and $420,000 for condominiums. Inventory levels are at unprecedented lows for properties below the median list in both categories.
The Waterfront Single Family Market
Waterfront single family homes have always been popular in our marketplace. This is the “Venice of America” after all. However, the demand for single family homes on the waterfront has reached historically high levels. Despite our abundance of waterfront property compared to other US markets, waterfront single family homes with ocean access are still a rare commodity and as the saying goes, “they aren’t making any more of it”.
Since the lockdown ended last June waterfront single family sales have outpaced previous year’s sales by over 50%, with a record setting 128 closed sales in March 2021!
How is Supply and Demand Affecting Your Property’s Value?
While this report provides us with a good overview of the overall market in Northeast Broward County, it does not necessarily provide you with relevant data for your specific home or condo. We can provide you with a more precise inventory report for your neighborhood or building, helping you to price your property in this highly competitive real estate market. Ask us for a custom report today!