People in Fort Lauderdale have seen a boost in home equity. In fact, home values have been increasing since 2011, and that's helped with mortgages and much more. However, before rushing out to hire a real estate agent, it's important to understand the Fort Lauderdale housing market.
We will look into various things, such as the median listing home price, median home sold price, and much more. Is this a balanced market in Fort Lauderdale? Read on to see!
Trends for the Fort Lauderdale Housing Market
The housing market for Fort Lauderdale is quite competitive. Homes in Fort Lauderdale generally sell after about 68 days on the market, which is higher than in years past. Plus, houses are getting about two offers.
February saw Fort Lauderdale home prices up about 0.4 percent compared to last year, and they saw a median home sold price of about $481,000. However, there were 260 homes sold, which is lower than last year.
The median listing home price per square foot was $399, which is up 0.4 percent from last year, as well. Likewise, the median price for sale is 30 percent higher this year than the national average.
Sale-to-list Price Ratio
The price ratio for sales to listing price is a crucial metric for understanding the real estate market in Fort Lauderdale. This shows the percentage difference between the original listing price and the final sale of the house. It's sitting at 95 percent in 2022, which is down from 2021. Therefore, Fort Lauderdale houses are selling below the list price.
Relocation and Migration Trends in FL
Fort Lauderdale is a great place for homebuyers who want to move into the city from an outside metro. Roughly three percent of homebuyers in the nation performed a search to move here. New York buyers researched Fort Lauderdale more than any others, though Boston and Washington were close.
South Florida seems to be the hot ticket item right now because 80 percent of all Fort Lauderdale homebuyers wanted to stay in the metropolitan area. Overall, Cape Coral, Orlando, and Tampa were the next top choices.
Factors Affecting the Downtown Fort Lauderdale Market
Fort Lauderdale is known for its exciting lifestyle, entertainment, and beautiful beaches. The real estate market here has been booming for the last few years, so it's great for sellers and buyers. However, here are the factors that might affect the Fort Lauderdale market:
Sold Price and Median Listing Home Price
March 2023 showed a median listing home price for Fort Lauderdale of $599,000. This is up by seven percent from 2022. However, the sold price was about $502,500. That's a 2.76 percent decrease for sales.
Overall, the sold price is generally lower than the median listing home price in Fort Lauderdale. Therefore, there's often negotiation room for investors.
Balanced Market in FL
Fort Lauderdale is seeing a balanced market right now. This indicates that the supply and demand for homes is about the same. That can be beneficial for sellers and buyers. Investors have a wide selection of options available, and sellers can sell at a fair price, knowing they have a plethora of people interested.
Median Days on Market
Homes in Fort Lauderdale, FL, sell roughly 71 days after being on the market. That trend has dropped in the last month, but it's up from last year. Overall, this tells us that homes are now selling faster than a year ago, but they're not selling as fast as last month.
In a sense, homes in Fort Lauderdale sell quickly, but sellers must be prepared to keep them on the market for a bit.
Will the Housing Market Crash in Fort Lauderdale?
Most people wonder if Fort Lauderdale is a seller's market. No, it isn't.
The current housing market for Fort Lauderdale indicates that there are opportunities to find a home in this beautiful Southern Florida city, but competition is high. Likewise, luxury sales are dropping because the houses are selling at four percent under the median listing home price.
Negotiations are possible, which means investors can likely jump into Fort Lauderdale real estate with ease. Sellers are likely to take a little less than the listing price, but they'll probably work with a professional to market it efficiently and price it correctly.
Overall, it seems that the housing market for Fort Lauderdale is competitive, and homes sell below the list price. More and more people are flocking to Fort Lauderdale from outside metros. If you're interested in investing, now might be the time to do it.
Fort Lauderdale Housing Market Statistics
It's important to understand the statistics surrounding buying homes in Fort Lauderdale:
- The current median home price is $270,000.
- The one-year appreciation rate is 7.6 percent.
- The unemployment rate is 6.3 percent.
- The three-year appreciation rate is 44.9 percent.
- The population is currently at 172,389.
- The median sale price per square foot is $399.
Housing Market Predictions
Overall, it's important to pay attention to analysts, so here are some general predictions:
Lower Home Prices
Experts don't believe the home prices will decrease; there isn't a limited supply if you look in the right areas. However, higher demand and interest rates could force the seller to drop prices. This can be beneficial for investors.
Lower Home Affordability
Analysts believe that home prices will fall throughout the year. However, it won't be dramatic, and it isn't likely to offset those high-interest rates. Homes will appear to be less affordable because the mortgage payments will stay high.
High Mortgage Rates
Mortgage rates should continue to rise. This is because of continued inflation, the recession looming over us, and political tensions.
Fewer Home Sales
High-interest rates and mortgages will likely cause a decrease in homes sold. This means the median days to sell real estate will increase.
Fort Lauderdale Housing Market Predictions
Fort Lauderdale is sure to see an upward trend throughout 2023, whether you look at Broward County, Victoria Park, or Palm Beach. Home values are rising, and Zillow indicates that it has increased by about 13 percent in the past year. That should continue throughout the coming months.
Likewise, the sale-to-list ratio was 0.969 on January 31, 2023. Therefore, homes are selling slightly under the list price.
The percentage of sales over list price at the beginning of 2023 was 12.9 percent. This suggests that the housing market for Fort Lauderdale is more competitive now than before. However, the under-list price amount was still pretty high at 74 percent. Therefore, investors can find excellent deals if they look hard.
At the end of February 2023, we saw that homes were selling pretty fast in Fort Lauderdale. This is probably because of the housing demand, but the low inventory of options plays a part, too.
Fort Lauderdale is within the Miami metropolitan area, and this is the most diverse and largest in the state. According to Zillow, Miami should see an increase in home values through 2024. This means that the housing market for Fort Lauderdale could see a price growth into next year, though it will likely be modest.
The Fort Lauderdale real estate market is thriving, but there are still some drawbacks to think about. One is that natural disasters are prominent, which can cause damage to the real estate and impact the market. Likewise, Fort Lauderdale is considered a tourist destination, so seasonality might play a role for rentals.
Generally, the real estate market in Fort Lauderdale shows a strong chance for investors to capitalize on the growing population. However, investors must consider affordable prices and determine where the market might go in the future. It's wise to work with a real estate agent to help you find what you need in Fort Lauderdale.
Why Is It Important to Understand the Housing Market for Fort Lauderdale?
Buying real estate as an investor requires skill and research. A professional can help you because they understand the factors affecting your market area, such as market forecasts, conditions, consumer attitudes, and more.
Should I Invest in the Real Estate Market?
While you should understand the statistics, such as price per square foot and median listing prices, they don't tell you much about real estate investing. It is a great time to invest in real estate in this city, and here are the top reasons:
- Strong Economy - Overall, Fort Lauderdale is a growing and diverse economy. It's driven by industries like healthcare, tourism, and technology. In fact, the city houses many major corporations, including Spirit Airlines, Citrix Systems, and AutoNation. Plus, the unemployment rate is lower than the national average, indicating a healthy economy and a stable job market compared to others.
- Population Growth - The population in Fort Lauderdale has grown steadily throughout the years, and projections indicate that it will increase more in the coming years. This means there will be a demand for housing, which is excellent news for investors. Plus, retirees often come to the city, which presents more opportunities if you can cater to that demographic.
- Great Climate - Fort Lauderdale has a sunny and warm climate, making it a great place for snowbirds and tourists. You'll have a steady demand for rentals, such as condos or vacation homes, but it might be more short-term. Investors can benefit if they know how to market themselves.
- Strong Rental Market - The rental market in Fort Lauderdale is strong, and there's a significant demand for more rental properties. Overall, the growing population and high cost of owning a home play into that. Investors can use that market and purchase properties catering to long-term renters in the area.
- Affordable Pricing - The real estate market here is still affordable, even with the growing population and strong economy. Therefore, investors can buy at a lower price and earn a high ROI.