Fort Lauderdale Real Estate Forecast Warnings for 2024 | Expert Predictions
Introduction to Our Fort Lauderdale Real Estate Forecast for 2024
Frequently, real estate professionals enthusiastically assert statements like “it’s always a good time to buy” on social media or in direct conversations with clients, creating the perception of a consistently thriving market. However, Fort Lauderdale’s real estate market, much like any other market, doesn’t universally exhibit robustness. Fort Lauderdale has been drawing in families who are moving, and the city’s value has gone up a lot. As we start 2024, it’s not surprising to notice certain things happening, given how quickly the market has been going up. This might make people pause and wonder if it’s a bit too expensive now and if it’s really the right time to buy.
At DSG, we prioritize transparency. Those familiar with my videos, podcasts, or reports are aware that I refrain from embellishing or endorsing inflated products. In this report on Fort Lauderdale real estate predictions, we’ll delve into both the challenges and opportunities. Let’s start with the warnings. Nevertheless, this doesn’t imply a lack of potential gains in specific condos, homes, or pre-construction properties this year. Despite concerns in specific sub-markets and products, our optimism persists. We’ll explore lucrative opportunities later in this report, but initially, we’ll offer advice designed to protect your wealth as much as to foster its growth.
What to Expect from Our Fort Lauderdale Real Estate Projections
Our 2024 Fort Lauderdale Real Estate Forecast is presented in 10 distinct points, encapsulating key predictions, forecasts, and trends. These points illuminate both opportunities and cautionary aspects, forming an integral part of the comprehensive picture we aim to paint. We will provide detailed insights into each point through dedicated blogs, videos, and podcasts. These 9 points are all part of the big picture and we will expand upon them in separate blogs, videos, and podcasts in the upcoming weeks.
Our commitment to clients underscores advice that is forthright, measurable, and actionable. These insights aim to benefit buyers and sellers across local, national, and international realms. Each point invites further exploration, and we plan to delve into these subjects extensively on our YouTube channel and Instagram. Over the course of the year, we will monitor these predictions as market conditions evolve, considering factors such as elections, interest rates, exchange rates, and developments in stock and bond markets.
1 Will there be better Real Estate deals in Fort Lauderdale in 2024?
I believe the real estate market in 2024 won’t offer significantly better deals than those in 2023; it’s likely to remain consistent. While there’s an uptick in inventory, sellers are exhibiting resistance. The pace of inventory growth doesn’t create a significant imbalance, preventing a noticeable decrease in pricing. Sellers, not feeling pressured, are holding back. Although I don’t foresee a substantial increase in dollar prices per square foot, a strong decrease is also unlikely. Despite the increase in inventory, prices have not shown a decline so far. However, I anticipate that sellers with overly optimistic expectations will eventually reevaluate their pricing after spending some time on the market, leading to a reality check and potential repricing.
2 Is Fort Lauderdale Real Estate overvalued?
I view South Florida as a dynamic market, with Miami and Palm Beach experiencing annual price increases exceeding 10%. Positioned between these two robust markets, Fort Lauderdale emerges as a destination for those seeking enhanced value. Many buyers migrate from the Miami area, drawn to Fort Lauderdale for a more favorable property-to-dollar ratio. Whether it’s beachfront condos or waterfront homes, individuals often feel priced out in Miami and Palm Beach, prompting their move to Fort Lauderdale.
Consider a beachfront condo in Miami, where prices range from $2,500 to $4,000 per square foot. In contrast, we’ve recently listed a newly finished condo in Pompano Beach for $1,300 per square foot.
When the wealth migration from the northeast began, South Florida offered a steal, presenting a value proposition. Currently, Miami has reached parity with New York. Although Fort Lauderdale has witnessed an increase in value, it still provides favorable options for discerning buyers. We continue to attract Canadian and Californian buyers who find our market very attractively priced compared to their home markets.
Fort Lauderdale stands out for its superior options, and fortunately, DSG has territory managers spanning from Miami to Palm Beach. This ensures you have access to comprehensive market insights and condo comparisons.
Unit 1404 at Solemar in Pompano Beach offers 3 bedrooms, 2,293 SF and spectacular beach views. This listed is offered for $3,190,000
3. Which Market Will Do Better in 2024? Condos vs Homes in Fort Lauderdale
We’re witnessing a significant number of buyers interested in both condos and homes priced between $2 million and $4 million. This demand stems from their sensitivity to price corrections and anticipation of potential reductions in interest rates. Many of these buyers rely on mortgages, and any fluctuations in rates prompt them to enter the market. As we’re in an election year, there’s heightened uncertainty, Interest rates play a pivotal role, and once they decrease, we anticipate a surge in optimism and a corresponding influx of buyers. The market’s mood is heavily tied to optimism, and interest rates wield significant influence in shaping it.
4. Which Fort Lauderdale Neighborhoods will we see corrections in?
In the Fort Lauderdale waterfront real estate market, certain corrections are anticipated, particularly in Harbor Beach. However, this won’t apply to ultra-luxury homes or those built after 2020. The correction is expected to impact slightly older homes that may have overestimated their value compared to the newer properties in the vicinity. Preferences have shifted towards newer homes, as people seek to avoid the hassle of dealing with contractors and undertaking renovations. Additionally, older homes often entail higher insurance premiums, a situation exacerbated by recent increases from Citizens, and in some cases, these homes are now uninsurable. Despite being situated near brand-new, high-value homes, older waterfront properties may struggle to fetch top dollar. Many are compelled to trade at land value due to the challenges posed by elevated insurance costs, particularly for homes susceptible to flooding. However, there are positive developments, such as the raised seawalls in areas like Coconut Isle and the ongoing construction of new homes, instilling confidence in selling within these previously considered risky areas.
| Newer Construction Homes (built after 2015) around Fort Lauderdale | |||
| Neighborhood | % Homes that is newer construction | Average List Price per SF | Average Sales Price per SF |
| Harbor Beach | 46% | $2,700 | $2,256 |
| Rio Vista | 44% | $1,970 | $1,674 |
| Las Olas Isles | 38% | $1619 | $1,481 |
| Coral Ridge Isles | 38% | $1,554 | $1,118 |
5. What Fort Lauderdale Price Point will see its prices drop in 2024?
The most active market segment lies within the $2 million to $3 million range, where inventory remains scarce, offering little relief in the foreseeable future. In the $3 million to $5 million range, there may be some adjustments observed in the waterfront market, particularly as one moves west, where increased inventory is noted compared to the eastern parts of Fort Lauderdale.
Luxury markets such as Harbor Beach, Las Olas Isles, and Rio Vista showcase a notable percentage of new construction homes. These residences command a premium, averaging around $1,600 per square foot and achieving sales prices of $8 million and beyond. Newer homes across South Florida are generally the most expensive and are highly favored by many buyers. Upgraded seawalls and lower insurance costs contribute to their appeal, given that these properties adhere to the latest building codes.
While these homes often represent the pinnacle of luxury, not all of them meet the same standard. For a more in-depth exploration, we recommend reading our report on the less glamorous side of waterfront homes. It’s crucial to discern between custom homes and spec homes when in the market for a new residence. Spec homes are designed for resale, whereas custom homes are meticulously crafted with end-users in mind.
Fort Lauderdale has now entered a new era of ultra-luxury homes, with residences exceeding $30 million. These sought-after properties are strategically located in prime areas like Fort Lauderdale Beach or point lot homes in Harbor Beach, Las Olas Isles, and some in Rio Vista. Fort Lauderdale’s expansive waterways make it an ideal haven for boaters, adding to the allure of these spectacular residences.
6. How is the Migration Aspect within Fort Lauderdale
The growth continues, and there’s an ongoing desire for people to be in this location. Interestingly, traffic picks up after the Super Bowl, and as spring approaches, there’s a surge in interest in property. This period marks our high season, especially for migrating buyers exploring properties in Fort Lauderdale. A significant number of buyers originate from Canada, California, and some from the Midwest, such as Chicago. The severity of the winter often correlates with increased migration to Fort Lauderdale. Thus, the trend of migration persists.
7, Will Growing Pains Interfere with the Demand for Fort Lauderdale Real Estate?
Certainly, Fort Lauderdale is poised to encounter some growing pains, particularly in the downtown area. The high vertical density presents challenges with limited roads leading in and out, contributing to congestion on Las Olas Boulevard. Residents from Las Olas Isles will likely experience the impact of this congestion. Additionally, schools and private clubs are facing waitlists. The trend of attrition in Fort Lauderdale, as seen in Miami, is diminishing. More people are choosing to stay or returning after completing their college education.
For boating enthusiasts seeking proximity to inlets, the premium streets for boaters are crucial. Lucille Drive on Harbor Beach emerges as an excellent choice, boasting wide canals, convenient access to the inlet, and providing an idyllic setting for boaters with spectacular views and protection on the way to the ocean.
8. The effect of Interest Rates on the Fort Lauderdale Real Estate Market
While I don’t possess a crystal ball, the Federal Reserve has been signaling potential interest rate reductions. In addition to analyzing data, our daily interactions with sellers and buyers provide a real-time sense of the market. The prevailing sentiment is that people are eager to be in this location and are actively exploring ways to make it happen, always with a keen eye on ensuring fair dealings. This sentiment is echoed by our agents in various regions—they all emphasize the importance of fair market pricing. As a seller, aligning your price with market expectations increases the likelihood of a successful sale.
9. The New Construction Market in Fort Lauderdale
The new construction market in Fort Lauderdale is incredibly dynamic and in high demand. Currently available projects include Andare, Rosewood Residences, Pier 66, the Waldorf Astoria, and Sixth and Rio. These developments are already 50% sold, even before breaking ground on most of them. As they progress to the construction phase, it’s anticipated that they may reach 80% sold. It is important to mention however that the quantity of new construction condos in Fort Lauderdale (13) is a fraction of what is observed in Miami.
In our “Ugly Truth” video, we discuss various factors to exercise caution, though Fort Lauderdale has fewer cautionary tales compared to Miami. One noteworthy example is the Edition Residences, initially announced but never breaking ground, now taken over by another developer. On the positive side, projects like Pier 66 are self-funded and already recognized as one of the best due to its iconic status as a social harbor and nautical destination. Feel free to contact me for more details on the best lines and further information about these projects.
Schedule a Call with David and Elaine
Schedule a call via the Calendar below to discuss the Fort Lauderdale Real Estate Predictions or any other questions you might have. You can also call us directly.
- David Siddons 305.508.0899
- Elaine Tatum: 305 793.0540
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