Waterfront Homes in Fort Lauderdale
There's a lot of hustle and bustle around the intracoastal this week. Everyone is setting up for one of Fort Lauderdale's biggest yearly events, the Fort Lauderdale International Boat Show. This is also the time of year where vacationers inquire about waterfront homes in Fort Lauderdale. In light of this, I thought I'd do a short review of year to date waterfront sales. I pulled data from zip codes 33301,33304, 33315, 33316, and 33312. A word of caution as always, these are averages! Waterfront homes in Tarpon River and Sailboat Bend generally won't sell at the same price as a home in Las Olas Isles or Rio Vista. All data was compiled from the Southeast Florida Multiple Listing Service (MLS). Data is only compiled only from MLS sales, so off market transactions would not be reflected. Data is for single family homes sales. Condo and townhome sales are excluded from these averages.
Any discussion that involves higher priced real estate should come with a disclaimer. Once you get above the $2 million dollar price range you find a market that is still relatively frozen. At least in the southeast section of Fort Lauderdale that I monitor. The graph below illustrates this. In any given month you'll find a large number of properties listed for sale, versus what's actually sold. The data shows in the strongest month less than 20% of the available inventory was taken fully through closing. We have a number of months where less than 10% of the available inventory was turning over. So who is this good news for? Buyers looking at waterfront homes in Fort Lauderdale should have room to negotiate with sellers. Buyers should find a vast inventory and a number of motivated sellers. Keep in mind, we're speaking about high dollar properties. The pool of qualified buyers is going to be thinner at high price levels.
Let's take a look at something that really stands out, the months of inventory report. A normal inventory would be a 6 month supply. I should have the closed sale data for last month in the next couple of days. For the time being let's use my post about home prices in Fort Lauderdale September 2013. In that post we find a graph that had 5.7 months of available housing supply across all price points. If we isolate the waterfront properties during the same period we see a supply of 16.7 months! Again, this is telling me that if I'm a buyer with a large amount of disposable income, it's a great time to buy on the waterfront! The data suggests I would have a lot of negotiating power as there is a lot of inventory for sale.
I'm pretty hesitant to put up this last graph. First thing, note the correlation between the dips in supply, and the rising of prices. If I'm a seller and I knew in April, May, or June we were seeing a dip in supply, I would have listed right away. Now look at the sales prices in May, June, and July. You'll see a huge leap! Listings in April would have likely closed in June, and so on, which is why you see the one month lag between tight supply and a price rise. Now lets look at the other side of the coin. Buyers currently have a tremendous amount of supply of waterfront homes in Fort Lauderdale to consider. Prices will suffer as buyers pick off the lowest priced properties. Again, if I'm a buyer looking for a waterfront home, I'm looking aggressively right now.
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I work as a Realtor in Southeast Fort Lauderdale. If you’re interested in buying or selling a home, condominium, or townhouse (townhome) in: Rio Vista, Victoria Park, Downtown Fort Lauderdale, Fort Lauderdale Beach, Harbor Beach, Lauderdale Harbors, Sailboat Bend, Tarpon River, Croissant Park, Collee Hammock, Seven Isles, Nurmi Isles, Idlewyld, or Las Olas Isles, please feel free to contact me at (786)443-7203 or through my email firstname.lastname@example.org. I am a Realtor that works on Saturdays to accommodate those with busy schedules.
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Written By Casey Prindle