March 2021 Update on Waterfront Property for Boaters
If you follow our waterfront real estate market in the Fort Lauderdale area then you know it is on fire right now. Inventory is low, prices are rising and buyers are coming from all over the country to invest in our coveted “ocean-access” waterfront property. Boaters love Fort Lauderdale, the “Venice of America”, and our neighboring communities of Lighthouse Point and Pompano Beach. The majority of our waterfront property is in these 3 municipalities and they all have amazing ocean access.
This most recent market watch report includes all single family waterfront property in NE Broward County and provides buyers and sellers with the facts, trends and statistics surrounding this ocean access segment. For more information about boating property please read our Boater’s Guide to Buying a Home or speak with one of our Waterfront Specialists.
Inventory and Rising List Prices
We started getting concerned about inventory last summer, and with increasing demand and transaction volume over the last 6 months this segment is tighter than ever. In September the overall market was in equilibrium with 6 months of supply, but the lower end waterfront homes were getting absorbed quickly with only 2.5 months of supply under $1,000,000. Now, listings under $1,000,000 are practically non-existent and we currently have only 1.3 months of supply under $2,000,000. This is a staggering statistic and these low inventory levels are driving prices up quickly.
New listings have been unable to keep up with absorption rates. There were 97 closed sales in September, this single highest volume month in 2 years. Sales slowed just a bit through the fall, but are back up as we hit the peak of our busy winter buying season.
Waterfront single family home listings under $1,000,000 are practically non-existent and we currently have only 1.3 months of supply under $2,000,000.
Active List Prices
As inventory on the bottom half of the market gets quickly absorbed, list prices continue to rise as sellers try to capitalize on the strong buyer demand and limited competition. Median list prices are now over $3,000,000 in NE Broward with Fort Lauderdale median list prices at almost $4,000,000. The good news is that if you are a luxury buyer looking at high end waterfront then you have good inventory to choose from and some sellers who own luxury property may soon have to reduce their prices. The good news for some property owners is if you own a waterfront home under $2,000,000 then now may be the perfect time to list your home for sale.
The waterfront communities in the Fort Lauderdale area are in high demand. As of March 3rd, 2021 there is only 1.3 months of supply under $2,000,000 in our ocean access real estate market.
Median Sales Prices of Waterfront Property
Ocean access property in the Fort Lauderdale area has experienced consistent price gains over the past five years. Since 2016 median prices in all of NE Broward have increased 39% and almost 13% over last year. Given current inventory levels, the overall strength of the local economy, our tax structure, weather and the increased “Coronavirus” interest in South Florida real estate, there is good reason to expect this trend will continue for years to come. After all, they’re not making any more waterfront property, not in South Florida anyway. The following graph displays median price appreciation over the past 5 years for our most popular waterfront markets. Pompano Beach continues to be our rising star with median price increases of 40% since 2016 and over 15% since last year.
Pompano Beach continues to be the rising star in South Florida waterfront property with median sales prices up 15% over last year and 40% since 2016.
Ocean access single family homes have always been highly desirable in South Florida, and our coastal communities offer the most diverse selection of ocean access real estate available in a variety of price ranges. For more information about buying boating property in our area, please read our Boater’s Guide to Buying a Home and if you’re considering selling your waterfront home please check out our marketing programs and contact one of our waterfront agents for assistance.