October 2022 Update – Single Family Ocean Access
The demand for single family waterfront homes over the past few years has been unprecedented. Median sales prices skyrocketed as inventory was quickly absorbed throughout South Florida. Our local waterfront communities in Northeast Broward County had less than 3 months of supply this time last year. Our inventory has more than doubled since then with over 6 months of supply in our current ocean access market. This is a welcome correction, especially for buyers who are facing affordability issues and rising interest rates. While we don’t expect median sales prices to drop, we certainly don’t anticipate the double digit increases we have experienced in recent years. We are seeing price reductions on over-priced listings and sellers should be more open to negotiation with the increased competition in the marketplace.
This report includes data for all single family waterfront homes with ocean access in Northeast Broward County including the cities of Fort Lauderdale, Pompano Beach, Lighthouse Point, Lauderdale-by-the-Sea, Wilton Manors and Deerfield Beach. 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 Levels for Single Family Waterfront
The following chart shows active listings, sales, absorption rates and months of supply for all ocean access single family homes in NE Broward County, including properties located behind fixed bridges. For the past couple of years the story in the single family waterfront market has been all about inventory. Last year at this time our inventory had been reduced to 2.6 months of supply. Today our inventory is back at an equilibrium of 6.7 months of supply. In our South Florida market anything under 6 months is a seller’s market and anything over 7 months is considered a buyers market. The problem is that our inventory is currently “top-heavy” with almost 12 months of supply over the median list price of $3m. If you’re shopping in the higher price ranges then you’ll have plenty to choose from, but it is still a seller’s market below $3m.
The problem is that our inventory is currently “top-heavy” with almost 12 months of supply over the median list price of $3m. If you’re shopping in the higher price ranges then you’ll have plenty to choose from, but it is still a seller’s market below $3m.
Median Sale Prices of Ocean Access Waterfront Property
Demand for waterfront property has certainly slowed in recent months, mostly due to affordability issues and rising interest rates. However, there are still plenty of buyers in the marketplace and our underlying economy is still strong. People are still migrating to Florida. Rental rates are at an all time high, so it still makes sense to purchase for most buyers, even with mortgage interest rates approaching 7%. We don’t expect double digit increases to continue, but waterfront property is still highly prized real estate in South Florida. We still expect to see modest increases in prices, at least through our busy winter and spring seasons of 2023.
The following chart shows displays median sales prices for our most popular single family waterfront markets, including Fort Lauderdale, Lighthouse Point and Pompano Beach. Fort Lauderdale continues to be our most expensive market with a median price increase of 48% over last year. On average our NE Broward ocean access neighborhoods increased over 35%.
We don’t expect double digit increases to continue, but waterfront is still highly prized real estate in South Florida, so we still expect to see modest increases in prices, at least through our busy winter and spring seasons of 2023.
Summary
For waterfront buyers the increase in inventory is welcome relief from a challenging 2 years of a strong seller’s market. Buyers will have more inventory to choose from although prices remain high and mortgage interest rates are likely to increase even more. If you need to buy a single family waterfront home, now might be the best time before rates go even higher and competition increases in the upcoming winter busy season.
For waterfront property owners who are still looking to sell, you may have missed the buyer “frenzy”, but there is still plenty of time to take advantage of high prices. Most sellers have plenty of equity thanks to the crazy increases in median prices over the past 2 years. If you’re considering selling your waterfront home, please check out our marketing programs and contact one of our waterfront agents for assistance.
