Fort Lauderdale Real Estate Market Forecast 2022/2023 (Part 4)

Part 4 | Fort Lauderdale Real Estate Report 2022 | Predictions and Actionable advice for Sellers and Buyers

Recap of Fort Lauderdale Real Estate Market Report 2022

We started this Fort Lauderdale Real Estate Market forecast with Part 1, in which we reviewed the historical and current data analytics of the real estate market in Fort Lauderdale. Then we progressed in Part 2 with a review of the rental market and Part 3 the wider economic influences affecting the market. The analytics have revealed that the overall real estate market might feel like it’s softening, but actually it’s transitioning to a more balanced market. Although the rate of market growth is not as accelerated as in 2021, it will very likely continue to track increases as a hedge against inflation. In this final section of the Fort Lauderdale Real Estate Report for 2022, we give actionable advice to Buyers and Sellers.

 

Fort Lauderdale Real Estate Market Forecast | Advice for Single Family Homes BUYERS

According to Dr. Khaled Aboulnasr at Florida Gulf Coast University, “ When it comes to consumers and their purchase decisions, emotions, either positive or negative, play one of the most important roles.” The best piece of advice for all buyers is to check the motivation for the purchase and refrain from making an “emotion” based decision.

  • Home Buyers in the $1 – $3m range – Recognize that we still have very low inventory levels, particularly in this range. Even with all the negative economic influences affecting the market, low inventory levels make it still a seller’s market. Don’t allow a fear of missing out to cloud your negotiations. Make offers based on research and comparative sales valuations. Enter the offer well prepared with mortgage pre-approvals or with proof of funds. Substantiate that you are a Buyer that will close. Working with a real estate expert is highly recommended, now is not the time to rely on an inexperienced Real Estate Agent
  • Buyers in the upper mid-range ($5m+) and luxury Home Buyers ($10m+) – The sales in these sectors are softening and inventory levels are beginning to grow. The growth in inventory is mostly due to the new construction offerings coming to market. The softening sales are not indicative of a crash, it just means we should see more normal buying behaviors and longer days on the market.
  • The ultra-high net worth Buyer – The dataset in this sector of inventory is very small. Fort Lauderdale is not a huge city and the migration of ultra-wealthy has made it very competitive, so be aware that ultra-prime ($18m+) properties such as direct waterfront homes on the highly desired point lots are not widely available.
Crash, Correction or Continued Growth? | Fort Lauderdale Real Estate Market Forecast 2022/2023 (Part 4)

Fort Lauderdale Real Estate Market Forecast | Advice for Condo BUYERS

Condo BUYERS: If you are considering a condo purchase make sure to avoid condos that have a very high percentage of rentals in the building. Search instead for buildings with more primary homeowners in residence. As we discussed in Part 2 of the Market

Report, Investor Inventory (rentals) creates vulnerability in a condo situation. Buildings that are inhabited by primary owners are usually more stable and have higher maintenance standards. Also, as the condo inventory rises and Buyers have more selection it is advisable to purchase something distinctive. Buyers should seek the best view, ceiling height, extra square footage and finishes that will set their unit apart from others. Always make a purchase with consideration of future reselling.

New Construction Condo BUYERS: Use an expert that will show you all the available options. This is especially important in the pre-construction market. Dealing directly with the Developer Agent means you are less likely to be presented with other options because they only provide singular representation for the Developer. They are also one-sided in their opinions of the project, it is best to hear a balanced presentation before making a purchase decision. Plus, it’s always beneficial to have separate representation at the negotiating table. The David Siddons Group can provide you with all of this!

Fort Lauderdale Real Estate Forecast | Advice for Single Family Home SELLERS

LUXURY HOME SELLERS – Be aware of fear of missing out on the height of market increases. The market is transitioning and the temptation to push your listing price to the outer limits should be avoided. Also appreciate the current and future inventory levels across your market. Selecting the right listing price from the start is of eminent importance. We are always analyzing current market trends. Currently there are more & more listings getting “repriced” “refreshed” “reduced” list prices. Be aware this is a

Transitional Housing Market where more competition is coming to market, there are less active Buyers and they tend to shy away from homes if they are repriced. It is basic psychology that Buyer’s will want the freshest property on the market at what they perceive is a fair value.

MID-LEVEL HOME SELLERS Now is not the time to overvalue your property. Due to the many Economic Influences that were discussed in Part 3, Buyers are being much more cautious and are closely reviewing valuations. Seek advice from a real estate expert to understand the neighborhood valuations. Do your research and be able to substantiate the value of the property prior to listing.

LAND SELLERS Understand the reality of supply chain issues and how this will impact buying decisions. Be prepared when you bring the land to market. Do the research in advance to provide Buyers with confidence. Partner with an Agent Expert like the David Siddons Group, that can provide recommendations for General Contractors, Architects and Designers. Increasing buyer confidence will benefit the sale.

Crash, Correction or Continued Growth? | Fort Lauderdale Real Estate Market Forecast 2022/2023 (Part 4)

Fort Lauderdale Real Estate Forecast | Advice for Condo SELLERS

LUXURY CONDO SELLERS –The advice is the same for all Sellers in this Transitioning Market. Be aware of the temptation to over value. Inventory levels are still very low especially in the condo sector and this might lead you to believe it’s okay to still shoot for the moon with pricing. Buyers may not have as much inventory to choose from at this current time but they have become much more cautious with buying decisions. We are Buyers become bolder in negotiations and Sellers beginning to adjust expectations.

Fort Lauderdale Real Estate Market Forecast | Advice for INVESTORS

The Investor Rental Market has been very lucrative with Investors experiencing high returns. Our advice to Single Family Home Investors would be to closely watch the rental rates within your respective neighborhoods. As the market transitions rental rates could begin to decline in some areas. Fort Lauderdale is continuing to experience positive population growth as more people and businesses migrate to the area. Due to migration, the Single Family Home rental market is likely to remain strong even if rates decline.

If you are a Condo Investor be aware of over saturation of rentals. Condo Rentals tend to be the most reactive to market fluctuations. Monitor the rental inventory levels and rates not only within your respective building but also those in the surrounding area.

Fort Lauderdale Real Estate Forecast | Advice for RENTERS

Rental rates have risen exponentially and it is possible that you may be better off in the long term Buying rather than Renting. Our advice is to work with a Mortgage Broker to see what you are qualified to purchase and if it makes sense.

Crash, Correction or Continued Growth? | Miami Real Estate Market Report 2022/2023 (Part 4)

FAQ

These are the most commonly asked Google Real Estate Related questions

1. What are the Current Best New Condos in Miami?

If you want to hear in more details our opinions on the best new Miami new construction condos. Please read this article:Best New Construction Condos 2022-2023

2. What is the best New Construction Condo in Fort Lauderdale?

In our opinion, the Residences at Pier Sixty-six are certainly the most interesting and unique. Already well underway this 32 Acre project will be home to the first of its kind Marina where owners will be able to anchor up vessels up to a staggering 400 ft! For specifics of this project see our independent review of this project.

3. How can I compare the new luxury construction Condos to the best existing Luxury Condos in Miami? 

Our Best Luxury Condos in Miami article will prove to be very useful to those looking to compare the existing to the new. You may also want to watch this video which shows the performance of the best Condos in Miami over the last 15 years!

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