Fort Lauderdale is a popular South Florida location for many buyers and sellers, which is reflected in increasing sales prices for condominiums and luxury properties alike. However, market growth is expected to slow to a more normal pace throughout the next year. Factors like rising mortgage rates and inflation will create more cautious buyers in 2023, which sellers will have to consider when listing and pricing their properties. To contextualize what will happen in Fort Lauderdale next year, here’s an overview of what’s currently happening in Fort Lauderdale’s housing market.
Looking at the statistics
- Fort Lauderdale homes have a median listing price of $725,000
- Homes in the $2-3 million price range average 39 days on the market, compared to 2021’s 123 days
- Single-family homes between $400-600,000 decreased by 20% in number of sales
- Median prices for single-family homes have increased by 18.4%
- Inventory for single-family homes is 1.9 months
- Inventory for condos is 1.7 months
The Fort Lauderdale real estate market
Even though Fort Lauderdale is a seller’s market, sales for property types like single-family homes have recently decreased, likely due to limited inventory and economic factors. The cost of living in Fort Lauderdale is 21% higher than the national average, and housing expenses are 49% above the average. More sales in luxury sectors affect average housing expenses, and paired with rising interest rates and inflation, this limits buyer power for some people searching in the area.
The 2023 forecast
Other factors like supply issues are also something to keep in mind going into 2023. Supply chain issues are causing delays in building new construction homes, which means that low supply won’t replenish as quickly. On top of this, Broward County’s sales percentages outpace the state of Florida and the U.S. Although this trend is expected to continue through 2023, there are indications of it slowing as inventory in some areas is increasing.
What to know as a buyer
Those interested in new construction homes should brace for higher prices in the new year due to previously stated supply chain issues. Although it may seem difficult to find a property you’ll love in the area due to high demand and low supply, local and skilled agents like those on the Sklar Team have a deep understanding of the listings available and can help you find a home that meets your needs.
What to know as a seller
One thing sellers should keep their eye on is how quickly the market transitions going into 2023. While it’ll likely remain a seller’s market, it won’t maintain the high competition conditions that push buyers into bidding wars. Coupled with higher mortgage rates and inflation, this may create more cautious buyers. In 2023, make sure to price your property correctly to avoid scaring off buyers and increase your chances of a sale.
What to know as an investor
Investors looking to break into the rental sphere, especially by buying properties like condos, must be wary of rental oversaturation next year. Be sure that there’s a demand for your property type before investing. Rental rates in Fort Lauderdale are high, which creates opportunities for good investments into 2023. Another thing to be mindful of as a new investor is high interest rates lasting into the new year. Be sure that your investment will pay for itself before buying.
Ready for Fort Lauderdale in 2023?
*Header photo courtesy of Shutterstock