Inventory Returns to Normal Levels, List Prices Down
Northeast Broward County
Single family waterfront inventory in the Fort Lauderdale area seems to be finding its equilibrium with 8.5 months of supply. This is technically a buyers market, but only slightly in the buyer’s favor. Inventory is up almost 33% from last year, but down from the 11.3 months of supply we had in February. Transaction volume was flat, but enough to absorb new listing inventory and return our supply to more normal levels. Inventory levels remain consistent across our waterfront communities, another good sign our market is stabilizing.
Closed sales were still below average the last 6 months, but inline with the same period last year. List prices are down over 14% from last year and waterfront homes are selling for 94% of list price on average. Median sale prices are equal to last year at $1,750,000, but sale price per square foot is up 7.5%. This is another good sign that the market is stabilizing. Much like the broader single family market, we expect price appreciation to return to normal levels on the waterfront. Normal appreciation in South Florida is 5% to 6% annually.
Scroll down for individual waterfront reports for Fort Lauderdale, Pompano Beach and Lighthouse Point
Northeast Broward County has the most plentiful supply of ocean access lots in all of South Florida. They don’t call this the Venice of America for nothing. The majority of our waterfront homes are located in Fort Lauderdale, Pompano Beach and Lighthouse Point.
Single family waterfront inventory in Northeast Broward seems to be finding its equilibrium with 8.5 months of supply. This is technically a buyers market, but only slightly in the buyer’s favor.
Northeast Broward County Waterfront Market Watch Report
Fort Lauderdale
Inventory in Fort Lauderdale is consistent with the overall market with 8.9 months of supply. Median list prices are only slightly down from last year at $3,750,000. However, sellers in Fort Lauderdale are negotiable with homes selling for 93% of list price on average. Inventory is very top-heavy with more options for buyers with deep pockets.
The median sales price over the last 6 months in Fort Lauderdale has stabilized at $1,982,500. Like the rest of the waterfront markets in NE Broward, we expect sales prices to return to normal appreciation levels.
Waterfront inventory in Fort Lauderdale is very “top-heavy” with more options for buyers with deep pockets.
Fort Lauderdale Waterfront Market Watch Report
Pompano Beach
Single family waterfront homes continue to be in high demand in Pompano Beach. The inventory is the lowest in NE Broward at 8.3 months of supply. Median list prices are also the lowest in the area, providing buyers with the best value on the waterfront.
The median sales price of a single family waterfront home in Pompano is also the lowest in the area at $1,395,000. This is down from the peak of $1,550,000 earlier in the year, but still up over 8% from the same period last year. While median prices in the rest of NE Broward remain flat, Pompano Beach is the only waterfront market where median prices have increased year over year.
While median prices in the rest of NE Broward remain flat, Pompano Beach is the only waterfront market where median prices have increased year over year.
Pompano Beach Waterfront Market Watch Report
Lighthouse Point
Lighthouse Point currently has the highest median list price at $4,295,000 and the most inventory with 9.1 months of supply. This is a smaller market, so inventory and median prices tend to fluctuate more. However, we will keep an eye on Lighthouse Point to see if this trend continues.
The median sales price and sale price per square foot are also the highest in the Fort Lauderdale area at $2,175,000 and $879 respectively. Again, because of the market size of Lighthouse Point there tends to be more volatility, so these numbers are likely to come down.
Lighthouse Point currently has the highest median list price at $4,295,000 and the most inventory with 9.1 months of supply.
Lighthouse Point Waterfront Market Watch Report
Summary
Just like the broader single family market in the Fort Lauderdale area, the waterfront market is finding its equilibrium and returning to normal. Inventory levels are technically favoring buyers, but I wouldn’t call it a buyer’s market. It feels like a normal waterfront market again. The bottom line is that list prices are coming down and deals are getting done with the average waterfront home selling for 94% of list price. Don’t expect median sales prices to come down though, especially if interest rates continue falling. Lower interest rates means more buyers, more competition for waterfront homes, lower inventory and increased prices.
Buying and selling waterfront property can be tricky business these days. Please make sure you have a local waterfront specialist to assist you.
