The Q1 2020 Fort Lauderdale Real Estate Market Report | The Performance of each Fort Lauderdale Neighborhood in Q1 2020
Part 3: How did the top Fort Lauderdale Neighborhoods Perform in Q1 2020?
Welcome to Part 3 of the Fort Lauderdale Real Estate Luxury Report. In Part 3 we dive deeper into the Q1 sales performances of the luxury neighborhoods in Fort Lauderdale. We ask ourselves: How did every Fort Lauderdale Neighborhood Perform in Q1 2020? We provide snapshot market points for each of the six selected neighborhoods and overview commentary. We also look ahead to selling trends in Q2 and how Covid-19 is impacting sales. If you are unfamiliar with these Fort Lauderdale neighborhoods please enjoy our video tours.
How did every Fort Lauderdale Neighborhood Perform in Q1 2020?
Victoria Park in Q1 2020
Victoria Park | Steady Sales in Q1
The David Siddons Group has analyzed the Q1 2020 sales results for Victoria Park and found them to be similar when compared to last year. The neighborhood retains buyer appeal due to the location near every major lifestyle attraction in Fort Lauderdale. The immediate benefits of living in Victoria Park include A-rated public schools, location near Downtown Las Olas District, minutes to beaches, cultural centers and the beauty of the surrounding tree-lined avenues.
Victoria Park single-family home sales remained steady throughout Q1 2020 when compared with Q1 2019 (17 closed vs 19 closed in 2019). The price per square foot increased by 3% to $452 per SF and discounts averaged 2% off the list price. Currently in Victoria Park there are 53 Active listings priced between $475,000 – $4,500,000. It is important to note that 55% of the listings are priced under $1m. The sales activity for single family homes has dramatically dropped off in the 2nd Qtr of 2020 with only 3 closed sales and 4 pending. There are buyers for Victoria Park, but sales are shifting to another segment of the market.
All the action can be found in the Victoria Park Townhome Market. In Q1 2020 there were 20 townhome sales in Victoria Park, which averaged $270 per SF. The rate of sales was the same in Q1 2019. The difference is looking ahead into 2nd quarter sales where 6 townhomes have already closed and 19 are pending sale. What is driving the townhome market? Lower costs per square foot which are 40% less for a townhome versus a single-family home in Victoria Park. Simply put, you get more space for the same money. Townhomes cater to first time home buyers, investors and families looking to benefit from the area’s schools. Whichever type of home you are seeking (single family or townhome) there are multiple options to choose from in Victoria Park.
SNAPSHOT VICTORIA PARK:
- Sales price per square foot increased by 3% for Single Family Homes sold between $1-$2m.
- Single Family Homes sales remained steady Q1 2020 (17) vs Q1 2019 (19).
- Single Family Homes listed between $1 and$2m stayed 25% longer on the market (Days on Market average increased by 25% to 242).
- Townhomes Sales are stronger than Single Family Homes going into 2nd Qtr
- Q1 2020 Biggest Neighborhood Sale: F10206970 (Featured below)
Rio Vista in Q1 2020
Rio Vista| Low Inventory & Buyer Demand
Rio Vista made our list for Fort Lauderdale Top 3 Waterfront Neighborhoods in Q1 2020, refer to Part 1 of the Fort Lauderdale Real Estate Luxury Report. The continued success of waterfront sales in Rio Vista is related to the low level of waterfront inventory and buyer’s demand for Rio Vista. There are currently only 11 waterfront homes for sale in Rio Vista. What makes this neighborhood special? It “IS” a true neighborhood. The residents that call Rio Vista home are mostly long term, or legacy Fort Lauderdale families. The tie that binds is the natural beauty of the mature growth trees, beautiful waterway vistas, charming interconnecting bridges and the Lauderdale Yacht Club. This is a boating, fishing community and the club is where locals gather to share adventures of the sea and a rum punch (or 2).
In Q1 2020 the largest sale in Fort Lauderdale was a point lot home located in Rio Vista. The sale was $20,500,000 at $1,575 per SF. This sale is a testament to the popularity of Rio Vista. Waterfront home sales in Rio Vista accounted for 58% of the sales while the remainder were non-waterfront. Overall, 92% of all Rio Vista sales were $1m+. Waterfront homes averaged $1,036 per SF. Non-waterfront sales averaged $429 per SF. Looking forward into Q2…. sales are averaging down 50%, but sales are still occurring even in these difficult times. Since April 1st, 7 new active listings have come to market, 4 sales have closed and 5 are pending sale. The average discount since April 1st was only 3% and one sale closed at an increased price: 607 SE 6th Street closed 5% higher than list price. There are still buyers willing to buy. The current total of all listings both waterfront and non-waterfront is 45 homes.
There are two waterfront homes currently available in Rio Vista that distinguish themselves. One is set on an entire 1.4 acre point lot with enough protected dockage for a 200′ mega yacht. The other significant waterfront estate sits on almost 2 acres and can accommodate yachts of more than 100′ ft. Rio Vista is a yachtsman’s paradise.
The city of Fort Lauderdale has focused a lot of municipal funds on improving utilities in Rio Vista and increasing the seawall along Cordova Road. These necessary improvements and the reconstruction of the Lauderdale Yacht Club will add to the long term appeal of the already highly desired neighborhood of Rio Vista.
SNAPSHOT RIO VISTA
- Average days on market was 68 for all sales except of the point lot home, which was on the market 510 days.
- Available waterfront inventory is low so absorption rates are good.
- The City infrastructure improvements are underway.
- Q1 2020 Biggest Neighborhood Sale: F10143887 (Featured below)
Las Olas Isles in Q1 2020
Las Olas Isles | Best Buying Opportunities
Our data from the prime Ft Lauderdale waterfront neighborhoods indicates that Las Olas Isles is currently the waterfront market with the best buying opportunities. Las Olas Isles has the highest inventory levels of single-family waterfront homes for sale and had the slowest turnover rate of comparable waterfront markets. At the end of Q1 there were 127 single-family homes actively listed for sale. The average days on market for these listings was 229 days. This number will likely increase since there are overall only 6 pending sales.
In Q1 2020, 81% of the 16 properties that closed in Las Olas Isles reduced the listing price prior to receiving offers. The average discounts from original list price to closing was 13.9%. The neighborhood is prime for investors or buyers to negotiate the best deals. The most recent example is the point lot home on Sea Island, which sold for $5.5 million. The home was one of three parcels offered on the point. The average for point lots sold in Las Olas Isles is $14m. The purchase on Sea Island was an amazing deal.
Another factor contributing to the higher inventory in Las Olas Isles are overpriced older homes. There is a boon of new construction inventory coming to market. Currently 28% of the active listings in Las Olas Isles are newer construction (2015+) averaging $1,014 SF. New construction appeals to buyers and furthers the lack of interest in older properties. 72% Of homes for sale in Las Olas Isles were built prior to 2015. These active listings average $944 per SF. Reality check: in the past year, 42 homes built before 2015 sold in Las Olas Isles at an average of $586 per SF. This is 38% less than the current average of $944 per SF.
Recent activity recap since April 1st: 7 closed sales | 6 pending sales. Las Olas Isles is selling at 70% the normal average rate, which is higher than other prime waterfront neighborhoods.
SNAPSHOT LAS OLAS ISLES:
- 27 months of Inventory.
- Overpriced properties built before 2015, priced 38% higher than closed sale average.
- Average 229 Days on Market.
- Selling discounts averaged 14% after an initial price reduction.
- Currently selling at 70% the normal average
- Q1 2020 Biggest Neighborhood Sale: F10193181 (Featured below)
Coral Ridge in Q1 2020
Coral Ridge | Best Waterfront Value
Coral Ridge was the overall best performing neighborhood in Q1 2020 for both waterfront and non-waterfront properties, refer to Part 1 of our Fort Lauderdale Real Estate Report. Coral Ridge sales are being propelled by the low prices per square foot. Buyers want more for their money and they are achieving this goal in Coral Ridge. The neighborhood currently has an ideal balance of inventory to sales (7 to 8 month supply), increased prices would disrupt this balance. Coral Ridge sellers are advised to not increase pricing. The neighborhood has shown steady growth in keeping with buyer demand.
The waterfront single-family valuations for Q1 closed sales inched up to $477 per SF which is the lowest price per SF among similar waterfront neighborhoods. The average sales price for waterfront homes was $1,850,000 in Q1 with a selling range from $750,000 to $3,900,000. Non-waterfront average sales were $750,000 at $330 per SF with a range from $455,000 to $1,250,000. The appeal of Coral Ridge is not only a value proposition. The neighborhood is well located close to the beach with tree-lined streets and graciously sized lots. South Coral Ridge is assigned to the best elementary school in Ft Lauderdale, Bayview Elementary. For this reason, many families choose to live in Coral Ridge. Buyers that are seeking ultra-prime properties with valuations above $4m should consider other prime neighborhoods such as Las Olas Isles or Harbor Beach, which will offer more inventory selection above this price point.
Coral Ridge also has an active condo market. In Q1 2020 condominium sales averaged $360,000 at $258 per SF. The valuation slightly increased year over year for the same time period mirroring the results of single-family home sales in Coral Ridge. There is currently a 9 month supply of condo inventory, which is very healthy.
Looking forward at the effects of Covid-19, Coral Ridge single-family home sales from April 1st are down 56% from the same period in 2019: 11 closed sales | 13 pending sales | 20 new listings. Sales are still happening and with the good valuations in Coral Ridge we expect this neighborhood to recover quickly from the slowdown. Enjoy the neighborhood video, which will visually highlight the best aspects of living in Coral Ridge.
SNAPSHOT CORAL RIDGE
- The best Waterfront value in Coral ridge averages at 477 per SF
- Q1 Waterfront: 14 properties sold with an ideal 8 months on hand inventory
- Q1 Non-waterfront: 29 properties sold with an ideal 7 months on hand inventory
- Utility improvements continue in Coral Ridge.
- Q1 2020 Biggest Neighborhood Sale: F10168299 (Featured below)
Harbor Beach in Q1 2020
Harbor Beach | Ultra Prime Sales
Harbor Beach is considered an Ultra Prime waterfront neighborhood. The gated entry welcomes you to a neighborhood filled with deep water estates and mega yachts. This exclusive island enclave offers the most expensive real estate in Fort Lauderdale. It is home for many sport superstars and industry leaders. Harbor Beach is highly prized for deep water dockage, wide canals and quick access to the ocean inlet. To find out more about Harbor Beach watch our neighborhood video, which highlights key attributes of the resident lifestyle. Refer to Part 4 of our Fort Lauderdale Real Estate Report to see how Harbor Beach compares with the uber luxury waterfront neighborhoods found in Miami.
The sales in Q1 2020 averaged $5.2m ranging from $1,470,000 for non-waterfront to $10,900,000 for a waterfront estate. The average price per SF sold was $840, this is 25% less that the current listing average of $1,110 per square foot. Upon reviewing the active listings in Harbor Beach, 50% have reduced their prices. This indicates that listing are initially priced too aggressively. The result of over pricing leads to longer number of days on the market. Additional discounts are also taken from the final list price averaging 11% (of discount) with 323 days on the market. There were 8 sales in Q1 and it is important to point out that 50% of those sales were for new construction homes.
Looking forward into the second quarter at the effects of Covid-19 on Harbor Beach sales: 1425 E. Lake Dr Closed for $7,500,000 ($914 per SF) which was a 32% discount from the original list price of $10,999,999.
SNAPSHOT HARBOR BEACH
- The average price per square foot increased in Q1 2020 compared to Q1 2019 for Harbor Beach waterfront properties sold that were priced $2-$6m (+60%), $4-$6m (+13%), $6-$8m (+43%).
- The number of properties sold averages 1 to 2 per quarter in each price range so there are many variables that can impact the valuation results such as location near the point, year of construction etc. Request a personal property evaluation to learn about our pricing recommendations for your specific property.
- The Pier 66 Superyacht Village and further development will add to the luxury appeal of the Harbor Beach neighborhood. The Superyacht Village will be able to dock vessels up to 400′ in length.
- Q1 2020 Biggest Neighborhood Sale: F10192740 (Featured below)
Bay Colony in Q1 2020
Bay Colony | Boutique Luxury Waterfront
Welcome to the highly secure waterfront neighborhood of Bay Colony. This boutique enclave is comprised of a mere 110 single-family estate homes. Corporate Execs and CEO’s alike call Bay Colony home. It is only one of two guard-gated prime waterfront neighborhoods in Fort Lauderdale. Bay Colony is nestled next to the Intracoastal Waterway with wide, deep-water canals that provide quick and easy boating access.
The David Siddons Group selected Bay Colony as a Top 3 performing neighborhood in Q1. Bay Colony experienced high sales activity in the first quarter with 7 closings vs 1 sale in 2019. Buyers looking for value and security were able to find both in Bay Colony. The average of $500 per SF put Bay Colony as the 2nd most affordable prime waterfront neighborhood in Fort Lauderdale. The sales activity in Q1 represented a 77% sale through of the available inventory. Other owners encouraged by the success in the neighborhood listed their properties for sale. There are currently 10 active listings in Bay Colony. Refer to Part 1 of our Fort Lauderdale Real Estate Report for more on Bay Colony.
Taking a look ahead at sales during the second quarter; no new sales or pending sales have occurred. In 2019 there were 3 sales. The key to selling Bay Colony is value. With closed sales averaging at $500 per SF it makes sense that a listing priced $676 per SF would be on the market an extraordinary 1,577 days.
SNAPSHOT BAY COLONY
- The total number of waterfront homes sold in Q1 2020 was 6. This was an 600% increase of sales vs Q1 2019 (1 sold).
- There are currently only 10 active listings in this exclusive gated luxury neighborhood listed from $2.2m to $8.5m.
- In Q1 2020 four waterfront properties sold for more than $10,000,000 in Ft Lauderdale . One of these sales was in Bay Colony. It sold for $11,500,000.
- Q1 2020 Biggest Neighborhood Sale: F10184386 (Featured below)