Condo inventory is ballooning in the Fort Lauderdale area. The number of condos listed for sale is back to early 2016 levels and climbing.    During the month of September there were 9,534 condos available for sale, up from 9,190 in August.  The chart on top illustrates the move compared to the inventory of single-family homes.  This next chart highlights the condo inventory in isolation and shows just how drastic this move is.

How can anyone in their right mind say this is normal?  Real estate agents are probably telling their clients that “now is a great time to by or sell a condo.”  Anyone looking at purchasing in this environment needs to do their own homework and don’t rely on a sales pitch.  Here are just a few questions to ask if you are shopping for condos in South Florida:

• Has the building passed their 25 or 40-year inspection?
• How about their structural integrity reserve study?
• If so, do they have fully-funded reserves for required repairs and maintenance?

When you look at average sale prices, they haven’t dropped much yet.  In September, the average sale price of a condo in Broward County was $366,978.  This represents a 10% decline from their peak of $405,779 in March of 2022.

Condo sales in the Greater Fort Lauderdale / Broward County market declined from 1,109 in August to 922 in September.  As inventory continues to climb, prices will soften and should gradually lead to more transactions, albeit at lower prices.

The number of condo properties listed for sale is on the rise throughout the tri-county area.  This chart above shows the following inventory for the month of September:

• Miami-Dade – 10,532 condos available for sale, up from 10,094 in August
• Broward – 9,534 condos available for sale, up from 9,190 in August
• Palm Beach – 6,604 condos available for sale, up from 6,286 in August

How about mortgage rates?  They aren’t cooperating right now.  With residential fixed-rate mortgages hovering around 7%, don’t expect any rate relief for the real estate market.

Finally, here is a chart of condo prices across Miami, Fort Lauderdale and Palm Beach markets.  Lately the news has been shedding some additional light on the risks and challenges of owning a condo in South Florida and buyers should be more cautious going forward.

This real estate market outlook covers real estate activity in Miami-Dade, Broward and Palm Beach County, Florida.  Here are just a few of the cities in each of these three markets:

• Miami-Dade – Aventura, Coral Gables, Miami Beach, Hialeah, Sunny Isles Beach, North Miami, Homestead, Doral, Miami Lakes, Downtown Miami, Brickell and Key Biscayne.

• Broward – Fort Lauderdale, Pompano Beach, Deerfield Beach, Hollywood, Hallandale, Weston, Parkland, Wilton Manors, Oakland Park, Plantation, Cooper City, Davie, Coral Springs, Sea Ranch Lakes, Lauderdale by the Sea and Lighthouse Point.

• Palm Beach – Delray Beach, Highland Beach, Jupiter, Palm Beach Island, Boynton Beach, Boca Raton, Highland Beach, Palm Beach Gardens, West Palm Beach, Wellington and Lake Worth.