Fort Lauderdale Home Prices Rise in Strong Real Estate Market

Ft Lauderdale Real Estate News 6/3/2022

Fort Lauderdale Homes Up A Whopping 36%

Florida Realtors 2021 Year-End Statistics

The Average Sales Price for a Single Family Home in Fort Lauderdale rose a staggering 36.2% in 2021. In addition, the Median discount from Listing Price was Zero, meaning the vast majority of homes either sold for full asking or more than the Listed Price.

These startling figures are according to the latest year-end statistics released by the Florida Association of Realtors. Though seemingly incredible on face value these are accurate numbers. Statistics released by the Florida Realtors are generated by compiling sales reported through the MLS of local realtor associations across the state.

In 2020 the Average Sales Price for a Single Family Home in the city of Fort Lauderdale was $893,479; in 2021 it was $1,216,958.

The Median Sales Price, a more traditional indication of actual appreciation, for a Single Family Home in Fort Lauderdale increased 20%, from $500,000 in 2020 to $600,000 in 2021.

These figures are driven by the high demand for luxury waterfront properties from upscale buyers coming in from the Northeast and California.

Negotiation Is Futile

Stats regarding the discount from Listing to Sale Price are perhaps even more amazing. The "Median Percent of Original List Price Received" tracks the spread between asking and closing prices. With such an active Real Estate Market South Florida, and Fort Lauderdale in particular, are already known for being a tough place to negotiate. Historically, this Median Percent of Original List Price Received in Single Family Homes is around 95-96% of their asking, with Condominium and Townhome properties around 94-95%. In 2020, in Broward County, this number was 96.9% for Single Family, 94.9% for Condos (Villas and Townhomes). In 2021, however, the Median Percent of List Price received for a house was 100% and 98.9% for condos.

Condo Market Strong

The market for Condominium and Townhome properties was somewhat less sizzling, though still robust. The Average Sales Price for these properties rose 15.5%, from $488,172 in 2020 to $563,645 in 2021.

These figures were more in line with the Median Prices. In 2020 the Median Price for a Condominium and/or Townhome property was $335,000; in 2021 it was $383,750. That represents a year over year increase of 14.6%.

Once again we see the Fort Lauderdale location outperforming the State, South Florida and Broward County numbers.

Across the State of Florida, the Average Sales Price for a Single Family Home increased 25.8% (from $401,478 in 2020 to $505,129 in 2021). For South Florida (the reporting area comprised of Broward, Palm Beach and Miami-Dade Counties) the ASP increased from $634,142 in 2020 to $861,060 in 2021, rising 35%. Broward County reported an increase of 26.1%, from $530,166 in 2020 to $668,533 in 2021.

After languishing for some years the Condo market in Fort Lauderdale has also shown a sharp increase. The Average Sales Price for a Condominium or Townhome property rose 15.5% to $563,645 while the Median Sales Price went up 14.6% to $383,750.

Condo and Townhome numbers were strong throughout the state. Broward County reported a 19.8% increase in Average Sale Price (from $247,683 in 2020 to $296,632 in 2021) and a 15.1% rise in Median Sale Price (from $189,000 in 2020 to $217,500 in 2021. In the South Florida reporting area comprised of Broward, Palm Beach and Miami-Dade Counties the Average Sales Price for a Condominium and/or Townhome property rose 33.7% (from $333,738 in 2020 to $444,110 in 2021). For the same annum Median Sales Price increased from $220,000 in 2020 to $265,000 in 2021, or 20.5%. Across the state of Florida Average Sales Price for a Condominium or Townhome property went up 26.4% (from $303,051 in 2020 to $382,963 in 2021). Median Sale Price, statewide, grew from $215,000 in 2020 to $252,000 in 2021, an increase of 17.2%.

Home Prices Rise All Over South Florida

The strong housing market has led to sharp increases in home prices all across South Florida. The largest appreciation was in the small village of Sea Ranch Lakes, an exclusive enclave you enter through a guard gate along A1A just north of Lauderdale-By-The Sea, where Median Price rose 19.3% and the Average Sale Price of a Single Family Home increased 46.4%, from $1,701,000 in 2020 to $2,491,429 in 2021. Interestingly enough, 71% of all home sales in Sea Ranch Lakes were cash purchases, but before you get too impressed we should admit that was 10 of 14 total transactions.

Other municipalities:

In Pompano Beach, Median Price increased 21.9% (from $310,000 in 2020 to $378,000 in 2021) and the Average Sale Price rose 29.4% (from $447,642 to $579,351).

In Lighthouse Point, Median Price rose 37.4% (from $800,000 to 1,099,000) and Average Sale Price increased 22.7% (from$1,185,598 to $1,454,215).

Median Price for a Single Family Home in the city of Hollywood, Florida, increased 18.9% (from $349,000 in 2020 to $414,900); Average Sale Price went from $439,251 to $524,496, going up 19.4%.

Not surprisingly, the two sister Bedroom Communities of Davie and Cooper City showed almost identical numbers. Median Price increased 22.2% in Davie, 17.5% in Cooper City (respectively $495,000 to $605,000 and $464,00 to $545,000), while the Average Sale Price rose 17.8% in Davie (from $626,292 to $737,556) and 18.9% in Cooper City (from $516,525 to $614,049).

In the upscale western suburb of Weston Average Home Sale Price increased 22.3% (from $660,000 in 2020 to $808,426 in 2021), while Median Price rose from $567,000 in 2020 to $670,000 in 2021, a rise of 18.2%.

Another upscale suburb, Parkland, reported even better increases in home prices. Average Sales Price in this suburb rose 27.5%, while the Median Price went up 26.8% (respectively, from $773,674 to $986,395 and $690,000 to $$875,000).

Even historically middle-class neighborhoods are also showing significant appreciation in home values as it gets harder and harder for young buyers to find starter homes.

Single family residences in Plantation rose 24.4% in Average Sale Price (from $512,378 to $637,649) and 20.7% in Median Sale Price (from $447,500 to $540,000). Homes in Coral Springs increased 21.7% in Average Sales Price ($458,644 to $558,119) and 19,1% in Median ($445,000 to $530,000.

In Pembroke Pines SFRs rose 18.5% in Average Sale Price to $508,854 in 2021 from $429,438 in 2020, and the Median went up 14.3% to $478,500 in 2021 from the 2020 number of $418,500.

Coconut Creek reported an 18.3% increase in Average Sales Price (from $387,443 in 2020 to $458,178 in 2021, and a 17.1% jump in Median Price ($380,000 in 2020 to $445,000 in 2021.)

Interesting enough, the apparent outlier in Broward County seems to be the aforementioned seaside village of Lauderdale-by-The-Sea. (Or, as I prefer to call it - Stoplights-by-The-Sea) For some inexplicable reason the Average Sales Price for a Single Family Home in this little tourist trap along the beach rose only 1.4% (to $1,006,606 in 2021 from $992,834 in the previous annum), and the Median Price increased a paltry 4.0% (from$745,000 in 2020 to $775,000 in 2021. This is after showing sharp upticks last year, between 2019 and 2020, when Average Sales Price rose 26.5% and the Median 19.2%

Statistics for all the municipalities in Broward County can be found by clicking on the buttons below, following the links.

Will "The Bubble" Burst?

Don't hold your breath.

Clearly 36% year-over-year increases in home values are not sustainable, so I would not be surprised to see the market slow down a little, consolidate somewhat, but it is difficult for me to believe this is a "Bubble" which is going to burst. Unlike the crazy market in the early 2000s, which was driven largely by insane speculation, this is a demand driven spike in prices caused predominantly by an sizable influx of high-end real estate buyers from the Northeast and West Coast. Thanks to the Covid pandemic many people with high paying jobs in Finance and similar industries can now work from home. Why pay millions for a 1,200 square foot co-op in a sub-arctic urban craphole like New York City? That same money can buy you a luxury waterfront home in the tropical paradise of Fort Lauderdale. Aside from the Blade Runner congestion and the out-of-control homeless crisis in Los Angeles and San Francisco, California just raised its State Income Tax to 16%. As a result, many substantial and upscale home buyers are looking for more Bang For Their Buck in the proverbial Sunshine State, with a Homestead Exemption of your Primary Residence and no state income tax.