Fort Lauderdale Real Estate Market Forecast for 2023

Fort Lauderdale Real Estate Market Forecast for 2023

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

For a snapshot of Fort Lauderdale’s real estate market today, review the statistics below. Then, read on to see how these numbers affect you as a buyer or seller.

  • 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

Currently, Fort Lauderdale leans in sellers’ favor due to insufficient supply and high demand. Inventory is slim for both single-family homes and condos at 1.9 months and 1.7 months, respectively. For a balanced market, this figure should be closer to six months. However, luxury options and ultra-luxury options do have higher supply, which helps to drive sales in the sector. With low supply, sellers are increasing listing prices, which we see in the increase of median prices for single-family homes.

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

There are a few things to keep an eye on if you’re planning to buy or sell Fort Lauderdale real estate in the upcoming year. Mortgage rates are likely to continue their high rates into 2023, ranging from anywhere between 5-7%. Although these rates may seem daunting to some, they have been much higher in the past. Additionally, inflation may have an impact on buying and selling. More expensive labor and materials are making the cost of new construction homes higher, which will likely last through the next year.

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

Buyers looking for real estate in 2023 should be mindful of the effects of rising mortgage rates and the impacts of new construction delays. Florida’s average interest rates are currently 6.52% for a 30-year fixed loan, and 5.70% for a 15-year fixed loan. These figures may be something to seriously consider, especially in conjunction with rising home prices continuing into the new year.

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

Sellers in Fort Lauderdale looking into next year will likely continue to benefit from the area’s seller’s market conditions. With active listings currently on the decline in the county and inventory low, coupled with Fort Lauderdale’s desirable location, you can expect good offers when you list your property in 2023.

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 in 2023 will continue benefiting from Fort Lauderdale’s growing population, fueled by buyers moving for job opportunities and great oceanside views, as well as business growth in the area. Investors already established in the area who are geared towards the tourist population during the summer can expect to continue benefiting from renters into the new year.

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?

Buyers and sellers in 2023 will feel the impacts of Fort Lauderdale’s insufficient inventory, rising costs, and national trends of rising interest rates and inflation. For help navigating the local market as a buyer or seller, contact one of the experienced agents on the Sklar Team to guide you through the process.

*Header photo courtesy of Shutterstock

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The Sklar Team has been recognized as the Top Weston Sales Associates for the past 15 consecutive years, earning the prestigious Coldwell Banker International Society of Excellence since 2015. We live, work and play in Weston and believe in the quality of the lifestyle. Contact us today to start your home searching journey!

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