The Fort Lauderdale Real Estate Report Q4 2020 | What to Expect Going into 2021?

Fort Lauderdale Waterfront Homes for Sale | What to Expect Going into 2021?

Welcome to the Fort Lauderdale Waterfront Homes Report for Q3 & Q4 2020. This report will cover real estate sales results in the Waterfront Single Family Home Market for the last two quarters of 2020. We will also take a look at developing sales trends in 2021 and the sales performance of the top waterfront neighborhoods.

The Fort Lauderdale Real Estate Report | The Overall Performance of Fort Lauderdale Waterfront Homes

Let’s get started with a review of the overall performance in the Ft Lauderdale Waterfront Homes Market. Living in a waterfront home is a lifestyle choice that many buyers prefer, especially buyers relocating from high tax states or those seeking refuge from states severely impacted by Covid 19. These buyers are moving in droves to South Florida and are accelerating sales. In the $1-$2m bracket, sales have increased 86% when 2020 sales are compared with 2019. This sales bracket is depleted of inventory with only a 2 month supply remaining so we are Calling all Sellers.  The $2-$4m bracket currently has ideal inventory to sales with a 7 month supply. This bracket saw a 49% increase in sales. At $4-$6m we saw a 114% increase in sales volume. There are more inventory options in this price bracket with a 12 month supply. Sales in the higher price brackets have also increased with $6-$8m at 17% and $8m+ at 150% increase in sales. These über price brackets are also heavy on inventory with respectively 24 months and 52 months of remaining inventory. Deals can still be negotiated at the higher price points where there are more options for buyers to choose from. See the charts provided for visual representation.

Chart 1: Sales Review Q3 & Q4

The Fort Lauderdale Real Estate Report | Sales Trends for Fort Lauderdale Waterfront Homes for Sale

As we look ahead into Q1 2021 we have reviewed the numbers and offer our opinion on the sales trends. Looking at $1-$2m range the numbers indicate a continued increase in sales. The increase is predicated on new inventory coming to market. We see a trend in this price range towards off-market offers in the coming months or a move to the condo market where inventory supplies are stronger. The trend as we see it for the $2-$4m market is that it will remain steady in coming months with no large surges. Forecast sales in $4-$6m have already doubled year over year. Our prediction is for sales in the $6m +market to taper off as discerning buyers look for newer construction and contemporary homes. These buyers are unwilling to take on remodeling projects as they continue to be wary of the virus. Sellers in the higher price points should look to do the work themselves for quicker sales appeal.

Chart 2: 2021 Sales Trends

The Fort Lauderdale Real Estate Report | The Performance of the Top Ft Lauderdale Waterfront Neighborhoods

Now let’s review how the Top Fort Lauderdale Waterfront Neighborhoods performed in Q3 & Q4. We begin with Las Olas Isles which recorded the highest sales increase of 139% and remaining inventory of only 7 months. Las Olas Isles continues to be a Sellers Market with high Buyer appeal. Coral Ridge and Bay Colony / The Landings respectively had 21% and 22% increases in sales. In our opinion the rate of sales increase would have been higher in these two neighborhoods if inventory levels had been stronger. They currently only have 4 months of supply indicating again a strong Sellers Market. Harbor Beach increased by 50% but this neighborhood is sitting with a 17 month inventory supply of high priced inventory. We advise those Sellers to reduce price expectations. Lastly, Rio Vista/ Lauderdale Harbors which is the only area to experience a 75% decrease in sales. Don’t be discouraged the seawall and sewer infrastructure improvements are almost complete. Once Buyers see how beautiful the neighborhood is and the renovated Lauderdale Yacht Club we expect sales to quicken.

Chart 3A:  Neighborhood performance based on closed sales

Chart 3B:  Neighborhood performance based on inventory