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August 24th, 2019 by Marco Santarelli
How is The Fort Lauderdale Real Estate Market 2019?
Buying real estate in Fort Lauderdale can be a worthy investment opportunity. If you are looking at investing in the Fort Lauderdale real estate market in 2019 as a potential investment opportunity, you must read till the end. Whether you’re looking to buy or sell, timing your local market is an important part of real estate investment.
Fort Lauderdale isn’t as famous as Miami, but it shares a number of characteristics with it. That’s understandable since it is only a short distance north. Yet the city has its own, distinct characteristics. One notable case is the many boating canals in East Fort Lauderdale.
Fort Lauderdale sits on the Atlantic coast of Florida. It is about thirty miles north of Miami. It is the county seat of Broward County. Fort Lauderdale itself is home to around two hundred thousand people. It is one of the larger cities in the Miami metro area. The Miami metropolitan area is home to around six million people.
The Fort Lauderdale housing market is poised for steady price growth in 2019. Is Fort Lauderdale going to be one of the hottest real estate markets for investors in 2019? To answer this question, let’s take a deep look at the latest Fort Lauderdale housing market trends and find out the prospects of investing in the Fort Lauderdale real estate in 2019.
Fort Lauderdale Real Estate Market Forecasts 2019 & 2020
According to Zillow, the median home value in Fort Lauderdale is $313,500. Fort Lauderdale home values have gone up 0.7% over the past year and Zillow’s Fort Lauderdale real estate market predictions is that the prices will fall -0.9% within the next year. The median list price per square foot in Fort Lauderdale is $318, which is higher than the Miami-Fort Lauderdale-West Palm Beach Metro average of $221.
The median price of homes currently listed in Fort Lauderdale is $499,000 while the median price of homes that sold is $339,000. The median rent price in Fort Lauderdale is $2,000, which is lower than the Miami-Fort Lauderdale-West Palm Beach Metro median of $2,100.
Here is the Fort Lauderdale real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of -0.9% till July 2020.
Fort Lauderdale Housing Market Forecast 2019 – 2021
The Fort Lauderdale housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Fort Lauderdale housing market trend prediction is 81%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Fort Lauderdale, FL is 81% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Fort Lauderdale, FL Real Estate Forecast.
Fort Lauderdale Real Estate Market Trends
Is Fort Lauderdale the hottest market for real estate investment in 2019? Let us see what do the market trends have to say. Fort Lauderdale real estate market trends indicate an increase of $11,500 (4%) in median home sales and a -4% drop in median rent per month over the past year. The average price per square foot for this same period rose to $257, up from $255.
Trulia has 1,664 resale and new homes for sale in Fort Lauderdale, FL, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Fort Lauderdale for May 1 to Jul 31 was $336,500 based on 1,020 home sales. Average price per square foot for Fort Lauderdale was $257, an increase of 1% compared to the same period last year. The median rent per month for apartments in Fort Lauderdale for Jul 6 to Aug 6 was $2,150.
As per the real estate company named Redfin, the Fort Lauderdale housing market is not very competitive. Homes in Fort Lauderdale receive 1 offers on average and sell in around 85 days. The average sale price of a home in Fort Lauderdale was $325K last month, up 8.1% since last year.
The average sale price per square foot in Fort Lauderdale is $235, up 4.2% since last year. Homes typically receive 1 offer. Homes in Fort Lauderdale housing market sell for about 5% below list price and go pending in around 85 days. Hot homes for sale in Fort Lauderdale, FL can sell for about 1% below list price and go pending in around 37 days.
Fort Lauderdale Housing Market Statistics
There are 9,077 homes for sale in Fort Lauderdale, FL ranging from $30 to $32M on Realtor.com. 515 of which were newly listed within the last week. Additionally, there are 3,196 Fort Lauderdale rental properties for sale, with a range of $600 to $140,000 per month. In July 2019 the housing market in Fort Lauderdale, FL was a balanced market, which means there was a healthy balance of buyers and sellers in the market.
In July 2019, the median list price of homes in Fort Lauderdale, FL was $310K, trending up 1.6% year-over-year. The median listing price per square foot was $203. The median sale price was $290.5K. On average, homes in Fort Lauderdale, FL sell after 82 days on the market. The trend for median days on market in Fort Lauderdale, FL has gone down since last month, and slightly down since last year.
The median list price in Fort Lauderdale, FL is $549,900 on Movoto.com. The median list price in Fort Lauderdale was less than 1% change from July to August. Fort Lauderdale’s home resale inventories is 2,316, which decreased 1 percent since July 2019. The median list price per square foot in Fort Lauderdale is $321. July 2019 was $316. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in August.
Fort Lauderdale, FL Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
As per the real estate company called Neigborhoodscout.com, the median house price in Fort Lauderdale, FL is $371,240, which indicates that home prices in Fort Lauderdale are well above the national average for all cities and towns in the United States. Large apartment complexes or high rise apartments are the single most common housing type in Fort Lauderdale, accounting for 45.33% of the city’s housing units.
Small one or two units are chiefly found in large apartment complexes or high rise apartments. Other types of housing that are prevalent in Fort Lauderdale include single-family detached homes, duplexes, small apartment buildings and a few row houses. Fort Lauderdale housing market has a mixture of owner-occupied and renter-occupied housing.
Currently, there are 919 single family homes for sale in Fort Lauderdale, FL on Zillow. Additionally, there are 280 single family homes for rent in Fort Lauderdale, FL. Under potential listings, there are about 3 Foreclosed and 129 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Fort Lauderdale, FL Foreclosures And Bank Owned Homes 2019
As per Zillow.com, the percent of delinquent mortgages in Fort Lauderdale is 1.6%, which is higher than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.
The percent of Fort Lauderdale homeowners underwater on their mortgage is 7.0%, which is lower than Miami-Fort Lauderdale-West Palm Beach Metro at 7.2%.
There are currently 2,761 properties in Fort Lauderdale, FL that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 3,557. In July 2019, the number of properties that received a foreclosure filing in Fort Lauderdale, FL was 34% higher than the previous month and 29% lower than the same time last year.
Best Places To Buy Real Estate In Fort Lauderdale, FL
If you are looking to buy real estate in Fort Lauderdale, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Fort Lauderdale real estate and you should be able flip it for a lump sum profit.
When looking to invest in Fort Lauderdale real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Fort Lauderdale investment property should be low. The neighborhoods in Fort Lauderdale must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties. There are 163 neighborhoods in Fort Lauderdale. There are 102 elementary schools, 49 middle schools, 39 high schools and 126 private & charter schools.
Some of the best neighborhoods in Fort Lauderdale, Florida are Victoria Park, Jacaranda and Galt Mile. Coral Ridge has a median listing price of $791K, making it the most expensive neighborhood. Lauderdale Lakes West Gate is the most affordable neighborhood in Fort Lauderdale, with a median listing price of $77.1K.
Here are the 10 best neighborhoods in Fort Lauderdale to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
Should You Invest In Fort Lauderdale Real Estate In 2019?
Is it worth buying a house in Fort Lauderdale, FL? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Fort Lauderdale is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Fort Lauderdale housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Fort Lauderdale but we have collected ten evidence based positive things for those who are keen to invest in the Fort Lauderdale real estate in 2019.
Investing in Fort Lauderdale real estate will fetch you good returns in the long term as the home prices in Fort Lauderdale have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Fort Lauderdale real estate market which can help investors who are keen to buy an investment property in this city.
1. The Proximity to Miami
Fort Lauderdale real estate has boomed as people moved here because they couldn’t afford to live in Miami. The Fort Lauderdale housing market is in easy commuting distance of Miami, but it offered the possibility of home ownership.
The Fort Lauderdale area is thus booming because of the access it provides to Miami but without the same problems. That’s why the Lauderdale real estate market has appreciated almost as fast as Miami but hasn’t suffered the same wild swings.
2. The Fact It Isn’t Miami
One benefit of living in Fort Lauderdale is the more stable local economy. Tourism is the biggest contributor to the Miami economy. It creates a boom and bust economy plus many low-paying seasonal jobs. Fort Lauderdale’s economy depends more on marine commerce, though tourism is a close second.
Like Miami, the Fort Lauderdale economy is supported by international trade, banking and business. Its more diverse economy gives it an unemployment rate one point less than Miami’s. While Fort Lauderdale has a slightly higher property crime rate, the violent crime rate is much lower than Miami’s.
And if you’re scared of being shot or murdered in Miami, the somewhat higher risk of having your car or boat broken into isn’t an issue. The Lauderdale real estate market also benefits from better schools and more stable property values.
3. The Cheaper Real Estate Market
If you’re going to invest in the Miami area, the Fort Lauderdale housing is slightly cheaper. The median home in Miami is around $335,000. The median home price in Fort Lauderdale is around $315,000. Rents are a touch lower, too. Rent in the Miami metro area average around 2100 dollars a month.
Rents in the Fort Lauderdale real estate market are 2000 dollars a month. That translates into a similar rate of return for a Fort Lauderdale rental property as a Miami one.
4. The Great Timing
The Fort Lauderdale real estate market is cooling. It has experienced a 0.7 percent drop in home prices in 2018, and it is expected to cool off another one percent in 2020. This means that you could get a good deal on a property, since the market is slowly declining.
You may be able to snap up a Fort Lauderdale investment property simply by offering a good price and fast close to distressed sellers. In contrast, Miami real estate is being bid up by foreigners who want to own property in the area in case they have to flee their home countries.
5. The Geographical Constraints
Fort Lauderdale has many things going for it. The beach front is one of them. That makes many areas incredibly valuable for either the views or the access to the water. It impacts the Fort Lauderdale real estate market in another way, because it limits expansion.
The city can’t expand to the east. They can’t expand much in any other direction, either, because everything is already built up. This means that new development requires expensive tear-downs, and projects will tend to be dense condo towers over single family homes.
6. The Tourism Market
Fort Lauderdale is a popular tourist destination in its own right. However, it also attracts people who can’t afford to stay in Miami. Fort Lauderdale has strict rules for short term rentals, but they are allowed. Property owners must register their properties.
There are limits on the number of guests and environmental concerns. For example, a rented out Fort Lauderdale investment property must follow strict rules on noise levels, trash removal and parking. Violations are punished by code inspection.
A Fort Lauderdale investment property rented out for short term use must also be inspected, while registration requires drawings of the interior.
7. The Large Student Market
Universities create a large pool of permanent renters who are almost immune to the rise and fall of the real estate market. There are several schools in the Fort Lauderdale housing market.
These include but are not limited to the University of Fort Lauderdale, City College of Fort Lauderdale, Trinity International University and Nova Southeastern University.
You could own multiple Fort Lauderdale investment properties and rent them out to students at several different schools, allowing you to diversify your holdings with relatively little risk.
For example, the Fort Lauderdale area isn’t part of a college town, so if school enrollment falls, you can rent out to someone else in the large rental market.
8. The Favorable Tax Climate
One point in favor of Florida is its lack of an income tax. However, that’s true for the entire state. This means the state relies more heavily on sales taxes and property tax. The average property tax rate for the state of Florida is 1.1 percent.
The Broward county average property tax rate is 1.336 percent. The property tax rate for Miami-Dade County is 1.280 percent. This evens out when you take the cheaper Fort Lauderdale real estate market into account.
Ironically, the area’s lower tax burden is what is leading many New Yorkers to move to southern Florida, bolstering the real estate market.
Demand for properties in the Fort Lauderdale housing market is also buoyed by the fact that it has a lower tax rate than some of the more upscale areas. For example, Golden Beach has a property tax rate of 2.4 percent.
9. The Landlord-Friendly State
One point in favor of Florida as a whole is that it is landlord friendly. For example, there is a state statute that prohibits rent regulation, better known as rent-control. The only exception is when there is a housing emergency so bad a county can declare an emergency.
While some activists are begging for this to be invoked permanently, it really only kicks in after a hurricane knocks down a large swath of housing. Florida doesn’t limit deposits. You can begin evictions once rent is three days late.
After five days, you can lock them out and deny access to their property. If someone intentionally damages a unit, you can submit a seven day unconditional quit notice.
The same is true for repeated lease violations. Lease termination typically requires seven days before the next rent payment is due. If someone stays over, you can collect double the normal rent.
10. The Massive Fort Lauderdale Rental Market
The Miami-Fort Lauderdale area shows that South Florida as a whole has an affordability crisis. The average resident must rent, though they may want to buy. Roughly two thirds of Miami residents rent, a higher proportion than New York City.
A slightly smaller proportion rent in the Fort Lauderdale housing market. That large pool of renters, though, keeps rents relatively high. On the flipside, the Fort Lauderdale housing market hasn’t had the glut of luxury apartment construction that is going to kill the returns for the high end of the Miami market.
Fort Lauderdale Real Estate Investment
Maybe you have done a bit of real estate investing in Fort Lauderdale, FL but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.
A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Fort Lauderdale real estate investment opportunity would be a key to your success. in If you invest wisely in Fort Lauderdale real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
The less expensive the Fort Lauderdale investment property is, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Fort Lauderdale, you should focus on neighborhoods with relatively high population density and employment growth.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Fort Lauderdale, FL. The Fort Lauderdale housing market has a number of points in its favor. It is bolstered by its proximity to Miami, but it is more affordable, stable and reliable.
You can’t overlook the possibility of picking up a Fort Lauderdale investment property if you want to buy something in South Florida.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Fort Lauderdale, FL is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.
They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Fort Lauderdale real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2019
The other best place to invest in real estate is Richmond, VA. The Richmond area is historic, but it is already a modern city embracing smart growth and development. Richmond is a stable housing market that offers good returns without massive regulation or heavy taxes.
The main reason you would buy a Richmond real estate investment property is for the rental income. However, the more important factor is the return on the investment. In this regard, the Richmond VA real estate market shines. The median rental rate is roughly 1300 dollars a month for an apartment.
Another sizzling market to choose for investment is the Newark real estate market. The Newark area is seeing significant growth and appreciation because of pressure coming from New York City itself.
This drives up rental rates and property values. The relatively affordable real estate market, more amenable tax and business climate and predictable growth should make it worth further investigation.
Newark real estate market saw appreciation in the double digits last year and has appreciated by two thirds in the past five years. Property appreciation in the Newark housing market is expected to be 6 to 7 percent next year.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Rent control / landlord friendly
Massive rental market
It isn’t Miami
Cheaper real estate
Housing Market Data, Trends & Statistics
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