Oceanfront Condo Supply Increases Dramatically
Just last summer our oceanfront condo market had less than 5 months of supply, making it a solid seller’s market. Things have changed dramatically since then. We now have 13 months of condo supply on the beach in Northeast Broward County. It is not unusual to get new listing inventory before the busy winter and spring seasons, but this is more than twice the inventory we had just one year ago.
So why the sudden increase in condo supply?
It could be due to the overall economy. Since many condos are second homes, these are the first properties that people sell when they decide to liquidate assets. Or it could be the new condo laws that require higher maintenance standards and more reserves. Whatever the case, condo owners seem to be more motivated to sell. This is good news for buyers who are likely to see prices come down, or at least flatten out. Factor in those lower mortgage interest rates and this could be the best opportunity in years to buy that condo you’ve always wanted. Its a buyers market again!
Fort Lauderdale
While inventory has built up in recent months, median sale prices have either dropped or flattened out in almost every market. Fort Lauderdale Beach has seen the largest drop in prices, although demand was so high in recent years that it was due for a correction. Median sale prices in Galt Mile were down in in the past 6 months, but pretty flat overall in 2023. We expect Fort Lauderdale to bounce back like it always does. There are very few new condo buildings planned in the near future, so resale prices should stay strong. Selene is the only project currently under construction on Fort Lauderdale Beach and Bahia Mar won’t even break ground until 2025 at the earliest.
Pompano Beach
Pompano Beach experienced median price increases in the latest report, but this is likely due to a large number of closings in newer condo projects like Solemar and Sabbia Beach. Pompano is quickly becoming more of a luxury condo market, attracting developers with International brands like Ritz Carlton and Waldorf Astoria. The new construction on the beach should help to keep prices up. Buyers who can’t afford new condos will be looking for deals in the resale market where many older buildings are undergoing massive improvement projects.
Lauderdale-by-the-Sea
Lauderdale-by-the-Sea is a smaller condo market compared to Fort Lauderdale and Pompano Beach. Its tends to have more fluctuation in supply and median sale prices, so its hard to say what will happen this coming year. Demand has always been strong, and with no new construction on the horizon, the resale market will likely bounce back quickly. The newest condos on the beach in Old Town are Villas-by-the-Sea which are always in high demand. Other popular condos that are currently undergoing improvement projects are Oriana, Hampton Beach Club and Sea Ranch Club.
Hillsboro Beach and Deerfield Beach
Inventory in Hillsboro Beach and Deerfield Beach is on par with the rest of NE Broward at 13 months of supply. Median sale prices are also up 5.5% in the past 6 months, so its difficult to say what is happening in this market. There is a large number of older buildings, so how they manage their improvements and reserves will dictate the overall market. The only new construction project on the horizon is the Rosewood Residences in Hillsboro Beach which is set to break ground this summer.
View All Oceanfront Condo Market Watch Reports
- All Northeast Broward County
- Fort Lauderdale Beach (excluding Galt Ocean Mile)
- Galt Ocean Mile
- Lauderdale-by-the-Sea
- Pompano Beach
- Hillsboro Beach / Deerfield Beach
Summary
The winter and spring seasons are always the busiest for buyers looking to purchase oceanfront condos. Inventory is plentiful again and mortgage interest rates are coming down. Most of the older condo buildings will eventually catch up with their deferred maintenance and reserve requirements. If they don’t, then those buildings will create development opportunities and provide much needed new inventory on the beach. Sellers seem more motivated and many will be looking to “get out” due to increased costs and assessments. 2024 will be an interesting year for our condo markets. The question is will there be enough buyer demand to absorb all the excess inventory. We are cautiously optimistic.
Northeast Broward County has a plentiful supply of oceanfront condos. Our barrier island condo markets include Fort Lauderdale Beach, Galt Ocean Mile, Lauderdale-by-the-Sea, Pompano Beach, Hillsboro Beach and Deerfield Beach.
Buying and selling waterfront condos can be tricky business these days. Please make sure you have a local waterfront specialist to assist you.
