If you haven’t visited downtown Fort Lauderdale or driven by the beach lately then perhaps you didn’t even realize how much new construction is going on in the Fort Lauderdale area. Broward County doesn’t get as much attention since, according to The Real Deal, 72% of new condo starts in the tri-county area are located in Miami/Dade County. With only 8% of the activity in Palm Beach, that leaves about 20% of the new condo construction in Broward County, including 29 projects and a total of about 1,900 units currently under construction.
Check out our New Construction Showcase
So, who is buying all of this new condo inventory? In Miami/Dade the majority of buyers are international, while here in the Fort Lauderdale area we tend to have more domestic buyers. In our experience and in discussions with local developers we are finding that many of the Broward buyers are locals, either empty nesters or retirees downsizing and moving east to live by the beach. This is good news for our local market since the strong dollar is making it much more expensive for international buyers to invest in the higher priced Miami marketplace. Another benefit for those buyers who are downsizing is that most single family neighborhoods in Broward are experiencing a seller’s market making it easier to get top dollar for their current homes and opening up inventory for resale single family buyers.
We are also watching condo inventory levels closely since overbuilding is always a concern in this stage of the real estate cycle. Looking at the condo resale market in the downtown and beach markets of Fort Lauderdale, we currently have just over 7 months of supply. While anything higher than 6 to 7 months is considered a buyer’s market, there is no reason for concern yet. Many developers are selling a large percentage of their inventory before even breaking ground and demand for lower priced resale units remains strong. So, our new construction condo boom doesn’t seem to be having a negative effect on the overall market, at least not yet.
The big question is whether demand for new condo product in the Fort Lauderdale area will continue. Our domestic oriented marketplace and relatively inexpensive condominium costs (compared to Miami) are definitely favoring continued demand. And, for buyers who depend on financing, interest rates remain low for now. However, interest rates cannot stay low forever and affordability will eventually become a problem as buyers start considering other less expensive Florida markets. Bottom line, we should enjoy this market while it lasts and if you’re considering a move, now is a good time to sell and buy that brand new condo on the beach that you’ve always dreamed of.
Browse New Construction Condos Here
