It looks like the condo market in South Florida will be going through some things.  Nowhere is this more evident than the Greater Fort Lauderdale area.  Take a look at the first chart showing a huge spike in condo inventory in Broward County.  Is it too late for this flood of condo sellers?  There is  a wake-up call coming to condo owners.  Who will be the first to drastically lower their price?

Condo inventory in Broward County has reached levels we haven’t seen since the last housing crisis.  Where will the buyers come from for all of these units?  In January there were 11,261 condo units listed for sale in Broward County and the trend appears to continue moving higher.

How about the tri-county area?  For now the inventory build doesn’t look too bad.  As we move through the year and into the summer months you should see a gradual increase in the number of condo markets on the market.  How many condo owners flocked to South Florida during COVID and now are stuck with escalating holding costs that no longer make sense?  The question is who will be able to weather the storm if there is a prolonged condo crisis?

The number of transactions doesn’t look to good for clearing this inventory anytime soon.  The newer buildings may still attract buyers, but older condo properties with looming special assessments and higher relative HOA fees may face some challenges.

How about good news?  Mortgage rates have started to nudge lower.  This could buffer some of the downside in the condo market.  It’s important to keep in mind that not all condo buildings qualify for mortgage financing and it’s important to check with your lender in advance.

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.