Is 2023 the Optimal Time for Selling Property in Fort Lauderdale?

Is 2023 the best time for selling your Fort Lauderdale property? This video is not another sales pitch to get listings. We delve into the present condition of the Fort Lauderdale real estate market and address the crucial query that weighs heavily on homeowners’ thoughts: “Is now an opportune moment to sell property in Fort Lauderdale, Florida?”. Keep on reading to find out who needs to sell and who does not!

Is the Fort Lauderdale market still experiencing growth?

Both condos and homes in Fort Lauderdale have reached a saturation point in terms of price per square foot. Price levels have stabilized, and sellers can no longer demand prices above the market value. While new construction properties may still have room for growth, it is generally safe to say that the overall property market has reached its peak.

Who should consider selling property in Fort Lauderdale?

When examining the market, it is important to identify two types of property owners: investors and end-users.

The Fort Lauderdale Investor Market – Condos

Investors should pay attention to the Fort Lauderdale market, particularly in the condo segment. The strongest performance is seen in newer luxury condos like Auberge and the Four Seasons. It is crucial for investors to remember that as the value of their underlying assets increases, the returns should also rise. Imagine an investor who purchased a unit at Auberge for $2.5 million and rented it out for $15,000 per month. That unit is now valued at nearly $5 million, and the rental price should not still be $15,000. In this scenario, the investor should either increase the rental price or explore alternative investment opportunities. If the return on investment does not yield $5,000 to $6,000 for every $1 million invested, it indicates that the returns are not sufficient.

By selling at the peak price, investors can capitalize on their investment and redirect the funds towards opportunities that offer higher returns. While rental returns in Fort Lauderdale, especially for newer condos, are still solid, it is crucial for sellers to be aware that they might have missed out on maximizing their profits.

The Fort Lauderdale Investor Market – Single Family Homes

The market for single-family homes remains strong for investors, offering good rental returns. However, it is crucial for investors to be mindful of the increasing insurance costs in South Florida. With heavy rainfall and water damage being significant factors, these costs will rise, impacting the overall return on investment. This is particularly true for homes that do not meet newer building codes, as they will be most affected. As property prices have already reached their peak, it may be wise to reconsider investments and explore options that provide a better product with greater potential for appreciation and a higher return on investment.

End-Users – Condos

For condominium owners, it is important to consider the escalating costs of HOA (Homeowners Association) fees and insurance. Opting for a newer condo might entail higher upfront costs, but it ensures compliance with the latest building codes, which can help mitigate the impact of rising insurance expenses. As building codes become more stringent over time, older condos will struggle to keep up and require ongoing investments. The longer a condo ages, the more challenging it becomes to sell. Furthermore, once insurance and HOA costs start to rise, selling the property becomes more difficult. This is particularly true for condos located along Galt Ocean Mile, which face an increased risk of higher HOA and insurance expenses. Condos constructed before 2010 are especially vulnerable and may spend an extended period on the market. Selling now can still yield a good price, but in the coming years, it is likely that these condos will face longer market times as more owners seek to sell their properties.

Who should NOT be selling and what should you be Buying?

Owners of land or new product do not need to sell. While there is high demand for new properties and land, it is important to note that not all new products are desirable. When looking to purchase, focus on new condos or homes that offer unique features such as an excellent location, high-quality finishes, and stunning views.

To illustrate, consider a home built on a $4 million plot of land in the Sunrise Intracoastal area. The land, along with the expected costs of constructing this distinctive Balinese-style home, totals approximately $16 million. The property was subsequently sold for $30 million. When it comes to selling new homes or developments, it is advisable not to list them before they are fully completed. Buyers prefer to see the finished product and its finishes. Listing a pre-construction home too early in the process carries the risk of it remaining on the market for an extended period.

Therefore, if you are a seller of a new home or a developer, it is recommended to ensure the property is fully finished before listing it for sale. On the other hand, as a buyer, consider properties with unique features and finished construction, as they tend to attract more interest and offer better selling potential.

If you are considering selling a Fort Lauderdale property use an expert agent who know the market and its prices. Do not rely on national estimation models. We are experts who have been doing this for the last 15 years. Take a look at our site and see the many articles and reports, videos, and podcasts we have created that will provide excellent insights into the Fort Lauderdale real estate market. We are here to help you make better decisions, because that is the motto of our group.

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