Fort Lauderdale Real Estate Market Predictions | The Fort Lauderdale Real Estate Market Forecast for 2023

Introduction to The Fort Lauderdale Real Estate Market Forecast

Welcome to the Fort Lauderdale Real Estate Market Forecast for 2023. This city continues to be one of the most dynamic and desired in South Florida. In recent years, developers have taken a considerable stake in the city by elevating the luxury condo market to new heights. The famed waterways also saw a surge in new construction activity. The benefits of new development include a refreshed city appearance and improved inventory levels. This beautification of Fort Lauderdale and the increased quality of luxury housing options will continue to draw corporate entities and migration from northern states, thus ensuring future residential prosperity.

The Year in Review

Now let’s review how the city of Fort Lauderdale performed in 2022 by first glimpsing back for a historical perspective. 2019 Was the last year that Fort Lauderdale, or any area in South Florida, experienced a balanced market. Therefore, it makes sense to compare 2022, a transitioning market, to the more balanced market of 2019. Incredibly the total number of single-family sales in 2022 is nearly the same as in 2019. However, significant differences are apparent. The average price in 2022 represents an 83% increase compared to 2019. Also, in 2022, cash accounted for 50% of home purchases, a 10% increase from 2019. The condo market had similar resulting increases. The charts below will detail additional sales history.

2022 saw some of Fort Lauderdale’s highest-recorded sales for single-family homes, $32.5 million, and condominiums, $15.4 million. In the second half of 2022, the Fort Lauderdale real estate market experienced the brunt of a forced correction from increased mortgage rates and continued media negativity. The number of properties sold as compared to the first half of 2022 declined in the second half by 33% in single-family homes, and there was a 38% decline in the number of condos sold. The luxury market had the steepest sales drop. The effect of this influenced Buyer demand and Seller expectations. However, despite the impact of negative media, financial pressure, and expectational challenges, 2022 ended as a solid year.

The Fort Lauderdale Real Estate Market Forecast for 2023

Good news came late in 2022 as the interest rates began to decline. The mood going into 2023 reflected increased positivity from Buyers and Sellers, whose expectations of value became more realistic. There is no doubt that the rocket-fueled sales of the post-pandemic are behind us. The pendulum has shifted with increases in inventory selection, most notably in the luxury home market, and an overall reduction of home pricing. Fort Lauderdale will continue to welcome more buyers that migrate to South Florida for our beauty, warmth, and lifestyle. Check below for advice for Buyers and Sellers in the Fort Lauderdale market.

Market Data for Fort Lauderdale Condos and Townhomes

Market Data for Fort Lauderdale Homes

Latest Market Data for Fort Lauderdale Neighborhoods

MARKET OBSERVATIONS

• Decision Paralysis: Buyers in this market have been plagued with Decision Paralysis. The lack of inventory options within budgetary constraints has created a whole host of dilemmas for Buyers. These Buyers have opted to sit on the sidelines rather than “Decide” on items within an available home that they are willing to give up, such as neighborhood location, updated interiors, and school proximity. These are Shadow Buyers, and they will keep circling until the right deal comes along.

• Seller Expectations: The luxury market in Fort Lauderdale has cooled substantially. Inventory levels have grown with increases in the months of supply. The increased inventory puts pressure on Sellers to reduce the prices of currently listed properties. 22% of Active listings above $5 million have price reductions. Competitive pricing is rising as the market in 2023 is more favorable to Buyers.

• Searching for Lifestyle: Fort Lauderdale is known for its waterways, yachting, and golfing lifestyle. Buyers new to the area expect to be able to join local clubs for social connection and enjoyment of the “Lauderdale Lifestyle.” Unfortunately, club memberships are wait-listed for multiple years. The lack of available club memberships has dampened Buyer’s enthusiasm. Is anyone interested in opening a social club?

• School Enrollment: Luxury Buyers relocating to the area want their children to attend the best schools. There are several choice private schools in the Fort Lauderdale area. Enrollments are up, and many grades are wait-listed. We recommend researching the schools and applying before a planned move.
• New Developments: The interest in new luxury developments in the Fort Lauderdale area continues to be strong. Many current Luxury Developments have a sold rate between 75% and 85%. There are more exciting development projects in the pipeline showcasing Developer confidence in the future real estate market of Fort Lauderdale.

ADVICE FOR SELLERS

Competition is on the rise, especially in the Fort Lauderdale luxury sector. The increased inventory should soften Seller property valuation expectations. Correctly pricing your property is the only way to secure a Buyers interest. There is no profit without a sale. Ensure you are working with an agent who can advise you on the current market and that they have broad marketing capabilities, such as the David Siddons Group. The best piece of advice, work on the first offer, whatever it is. It may be the best offer you receive.

ADVICE FOR BUYERS

The market is beginning to favor Buyers, especially Buyers seeking luxury homes. Fort Lauderdale inventories have grown, and Sellers are more reasonable with value expectations. If you find the right house in the right neighborhood, do not hesitate to make an offer. There is still Buyer competition for ideal properties that are new to the market. So get the conversation started with the Seller and keep it going.

CONCLUSION

The David Siddons Group is ready to assist you by understanding the transitioning market as we forecast a continued transactional and valuation slowdown in the first few months of 2023, especially in the luxury sector. Contact Elaine Tatum, our Fort Lauderdale expert, for specific neighborhood sales forecasts. Elaine has produced videos & podcasts, written blogs, and published numerous sales reports & fort Lauderdale forecasts. She can provide you with the best optics on Fort Lauderdale, whether you are a Buyer or Seller.