Fort Lauderdale Real Estate Trends | Q3 & Q4 2022

Fort Lauderdale Real Estate Trends | Will the Fort Lauderdale Real Estate Market be Hot or Not?

 

What are the latest trends in the Fort Lauderdale real estate market? We’re all talking about rising mortgage rates, low inventory, fast sales and price gains.

The Fort Lauderdale housing market has had an incredible run since the pandemic shutdown. How will those factors mentioned above effect the future of real estate sales in the coming months? In this blog, local real estate expert Elaine Tatum with the David Siddons Group will review the 3 reasons why we think the Fort Lauderdale real estate market will continue to grow throughout 2022.

Fort Lauderdale Real Estate Trends: #1 Buyer Willingness

There are multiple contributing factors that point to Buyer Willingness. In a review of luxury home sales in Fort Lauderdale’s top neighborhoods since the beginning of 2022 we found that sales closed at 95% of asking price. This indicates that the Buyers are willing to pay higher valuations which have increased more than 30%.

Fort Lauderdale Real Estate Trends | Q3 & Q4 2022

Inventory of Fort Lauderdale real estate

Another factor influencing Buyer Willingness is FOMO or Fear of Missing Out. Inventories have dwindled and Buyers are concerned about missing out on the best options. This is causing multiple offer situations and inflated purchasing.

Due to the lack of available inventory we are seeing some of our older stale inventory moving. An example of this is 1818 SE 10th in Rio Vista. This iconic home which is also known as the Ft Lauderdale White House recently sold for $24.5m after sitting on the market for 812 days. The Buyers recognized the value in the location which is a prime waterfront point lot. The original listing was $32m so they can feel good about the purchase price as well.

There is an extreme lack of inventory which is slowing overall sales volume. Don’t be fooled by headlines claiming flat sales growth or stagnated sales: there is a lack of inventory causing  lower overall sales volume but the influx of Buyers is not slowing down nor is their Willingness to purchase. In other words, there is pent up Buyer demand just waiting for more inventory to come available.

Fort Lauderdale Real Estate Trends | Q3 & Q4 2022

Average house prices for the different Fort Lauderdale neighborhoods.

Fort Lauderdale Real Estate Trends: #2 Builder & Investor Confidence

In a recent review of Active Luxury Single Family Listings in the Fort Lauderdale market, 38% were new construction. This number is a huge part of the current available inventory. Some of these listings however are pre-construction, which lowers the available inventory even more. The construction boom is much needed and is a sign that builders are benefiting from buyer demand.

The condo market is similarly being impacted by much needed new construction. Big brand names in the hospitality industry are taking a stake on the migration of luxury buyers to the Ft Lauderdale area. The Four Seasons has recently opened on Ft Lauderdale Beach. This 5 Star brand is commanding the highest price per square foot ever seen in this area. We experienced this with one of our Clients that purchased a Four Seasons unit early in pre-construction for $3.9m. After closing the buyer flipped the unit and sold for more than $5m. The buyer had a 25% return on their investment.

Pre-construction is now preferred by investors and those buyers seeking the best value. The Ritz Carlton in Pompano Beach is an example of another branded development that is performing extremely well for pre-construction. The RC is the fastest selling project in South Florida with reservations reaching 97%. The project offers value, luxury residences and the famous Ritz Carlton lifestyle with both a Beach & Marina Tower. The project is now going to contract and there are still some prime units available.

The David Siddons Group is among a select few that is privy to units that come available. Give us a call if interested in the latest availability in South Florida pre-construction developments.

Fort Lauderdale Real Estate Trends: #3 City Investment and Infrastructure Improvements

It’s no secret that buyers are drawn to dynamic cities. Fort Lauderdale continues to improve and invest in the future. This focus will continue to attract buyers to the Fort Lauderdale area. As part of the Las Olas corridor improvement projects the city is investing $130m towards the new Las Olas Marina. The marina will consist of 68 boat slips capable of housing mega yachts between 80 and 250 feet in length. The marina will also provide dining and retail.

The Las Olas Marina is a capstone to earlier projects including the new aquatics center and Las Olas beachfront park & parking garage. The beachfront Bahia Mar development project was also approved and consists of 350 condos and 88,000sf of commercial space. Other exciting projects include the War Memorial and Parker Playhouse at Holiday Park plus the possibility of a futuristic Tesla Tunnel. Fort Lauderdale is dynamic and continues to improve our city for future generations with notable and necessary projects.

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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