Inventory Levels Are the Highest in Years for Ocean Access Homes
The winter season is upon us in South Florida and the demand for waterfront property is typically very strong this time of year. The good news for buyers is our supply of single family homes on the waterfront in Northeast Broward County has swelled to the largest levels in years. However, median sale prices and sale price per square foot are still up over the past 6 months. We can’t say for sure what will happen to prices over the next 6 months, but buyers certainly have more inventory to choose from. With mortgage interest rates trending back down, we expect more buyers to return to the market and sales volume to return to normal levels.
Northeast Broward County has the most plentiful supply of ocean access lots in all of South Florida. They don’t call this the Venice of America for nothing. The majority of our waterfront homes are located in Fort Lauderdale, Pompano Beach and Lighthouse Point.
Northeast Broward County
Last October we were essentially at an equilibrium in our ocean access single family market with 7.4 months of supply. Since then, active listings have increased 15% and sales are down almost 25%. The result is that our waterfront inventory is now at 11.3 months of supply, which is technically a strong buyer’s market. This is a fairly normal occurrence for this time of year, since sales volume is always slow over the holiday season and inventory always increases early in the year.
The median sale price of waterfront homes over the past 6 months was $1,950,000. That is an increase of over 16% since the same period last year. Sale price per square foot is also 8% to $779 per foot on average in NE Broward.
Despite the increased supply, the median list price of active homes has increased to $3,495,000. However, our market is still very top-heavy and sellers are more “negotiable” with waterfront homes selling for 94% of their list price on average.
The median sale price of waterfront homes in Northeast Broward County is $1,950,000, which is an increase of over 16% from the same period last year.
Fort Lauderdale has the highest number of waterfront single family homes of any city in South Florida and it currently has the highest inventory with 13.1 months of supply. This is slightly higher than the 12.1 months of supply Fort Lauderdale had last January. Last year’s inventory was quickly absorbed down to 7.3 months in August. If that trend continues, then expect supply to return close to equilibrium again by summer.
The median sale price for waterfront homes in Fort Lauderdale over the past 6 months was $2,250,000 which is a 9.1% increase over the same period last year. The days of double digit increases in sale prices are likely over for now and we expect a return to modest single digit increases in the coming years.
Pompano Beach is a much smaller waterfront market than Fort Lauderdale, but the excellent location and lower prices are very attractive to many buyers. There is just over 9 months supply of inventory in Pompano, which is technically a buyer’s market. We should expect this inventory to be quickly absorbed this season, given that the price per square foot is the lowest in NE Broward.
The median sale price of single family waterfront homes in Pompano Beach was $1,550,000. This is an increase of almost 34% over the same period last year. Sale price per square foot was also up over 31%. This is likely due to affordability issues in neighboring Fort Lauderdale pushing more buyers to the “better value” in Pompano Beach.
Lighthouse Point currently has the lowest inventory in the Fort Lauderdale area with only 8.4 months of supply. As the smallest of our waterfront markets, the inventory does tend to fluctuate more, but overall demand is always strong.
The median sale price of a waterfront home in Lighthouse Point is $2,309,075. This was the highest in NE Broward over the past 6 months, but down 2.2% from last year. Year over year increases in median sale prices have been very consistent with prices up over 93% in the past 5 years. Prices in Lighthouse Point are very comparable to Fort Lauderdale, but the community offers waterfront buyers a very different “small town” feel with excellent ocean access.
The winter and spring seasons are always the busiest for buyers looking to purchase waterfront property. Interest rates are coming down and inventory levels are the highest in years. Median sale prices are still going up, but have “flattened out” compared to previous years. Our market appears to be returning to normal. With sellers more “negotiable”, buyers should have better luck finding their perfect waterfront home.
Buying and selling waterfront property can be tricky business these days. Please make sure you have a local waterfront specialist to assist you.