2022 Was a Wild Ride for Waterfront Homes and Condos
2022 was an interesting year for real estate across the country and the waterfront markets here in Fort Lauderdale experienced one of the most dramatic market shifts we have ever seen. 2022 started off as a strong seller’s market with very low inventory and high buyer demand. As interest rates increased throughout the Spring, buyers started moving to the sidelines hoping for a much needed market adjustment. Inventory was so low going into the summer that buyers who were still in the market were unable to locate desirable properties.
The much needed market correction has officially happened. Over the past 7 to 8 months inventory levels have recovered and even favor buyers in some segments. Interest rates started dropping in November and have stabilized with 30-year fixed rates at a more acceptable level of around 6%. Sale price to list price ratios are dropping indicating that more sellers are willing to negotiate. We are closer to market equilibrium than we have been in years. 2023 should be a great year for buyers and sellers to negotiate fair deals in Fort Lauderdale’s highly desirable real estate market.
Single Family Homes with Ocean Access
The Fort Lauderdale area, also known as the Venice of America, is home to some of the most desirable single family property in the country. Our beautiful waterways are lined with single family homes of all sizes providing owners with direct access to the Atlantic Ocean. Our primary “Ocean Access” markets are Fort Lauderdale, Pompano Beach and Lighthouse Point. As we enter our busy winter buying season, there is plenty of inventory to choose from with 9.1 months of supply. The median sale price is at $1,670,000, which is up over 11% from the same period last year. The market is quite top-heavy and with median list prices over $3m, fully renovated homes in the best locations are still demanding a premium. Single-family waterfront homes under $2m are extremely hard to come by and many properties in this price range are selling for land value.
Single-family waterfront homes under $2m are extremely hard to come by and many properties in this price range are selling for land value.
The coastline of Northeast Broward County is lined with a diverse inventory of oceanfront condos. There is literally something for everyone with condos available in a variety of sizes, styles and price ranges. Much like our single family markets, our condominium inventory has recovered and buyers have much more to choose from than they did just 6 months ago. While the median price is up 19% over last year at $715,000, we expect prices to level off a bit in the coming year. The best values will be in older properties faced with deferred maintenance and increased insurance premiums. Newer luxury condominiums are still in high demand and will continue to fetch premium prices.
The best values in the oceanfront condo market will be in older properties faced with deferred maintenance and increased insurance premiums.
Waterfront single family homes and oceanfront condos have always been in high demand in South Florida and that will likely never change. Median sale prices have started to level off, but don’t expect prices to drop. We expect to see modest increases in sale prices this coming year and perhaps for several years to come. Interest rates have stabilized, the overall economy in South Florida is strong and people are still migrating here. Buyers can still find deals in our marketplace, especially in the older condo market. Sellers can still expect to fetch a premium for properties in the best locations, but they will need to negotiate a bit more since buyers a now more price sensitive. Make sure you work with a local real estate agent who understands our waterfront property markets and values.