Resurgent Florida Market

While Florida home sale prices have increased for 4 consecutive years, the trend has escalated in the past year due to several factors including lower mortgage interest rates and the fallout from the pandemic. The latest report from the Florida Realtors Research Department shows the state wide median sales price of detached homes in February standing at $314,900, an increase of 16.6% from 2020. The median price for apartments is $233,240, also up 16.6% over 2020.

The Florida housing surge is happening across all price ranges. In the Fort Lauderdale area, condominiums priced under $600,000 and near the ocean have been especially strong sellers. Older period buildings where units are priced in the $400s to $500s have seen dramatic decreases in inventory. Large developments that usually have a dozen or so listings are often down to just a handful of apartments on the market. Fort Lauderdale-area, detached family home sales priced between $400,000 to $600,000 are up over 45% since January 2020. 

Sales and price appreciation have been just as strong for more expensive homes. Fort Lauderdale-area luxury home sales (over $999,999) are up almost 50% since 2020. Next door to Fort Lauderdale, condominiums in scenic Pompano Beach, have seen significant price growth. A town home development with six oceanfront properties each priced over $4 million (an unheard of price for the beach town) recently began construction, and all six sold out before the first foundation was even poured. Pompano Beach has become the new hotspot for Florida pre-construction homes near the ocean. While much of the Florida surge is due to people who left congested cities in the Northeast during the height of the pandemic, Florida has also seen a steady influx of overseas buyers for the state’s low taxes, good weather, thriving economy and wide selection of homes at competitive prices – at least for now.