Julie Jones Summer 2023 Market Report

Summer 2023

BY KATE TALERICO | ORIGINALLY PUBLISHED ON MARCH 24, 2023

Nestled Between Two Luxury-Home

Powerhouses, Fort Lauderdale

Are Primed for Future Upside

Homeowners

As land prices rise in Miami and Palm Beach, home buyers get more for their money in Fort Lauderdale

A few years ago, Rishi Kapoor, the CEO of Location Ventures, was looking for waterfront sites to develop condominiums in South Florida.

With land prices increasing to all-time highs in Miami and Palm Beach, he found a location where he felt that he could

attract luxury buyers but at a more reasonable price point: Fort Lauderdale.

“You can still get a five-star luxury experience and all of the amenities of a world class city, but definitely at a value compared to those other two markets,” Mr. Kapoor said.

A decade ago, luxury condo development was concentrated in skyrocketing Miami to the south, while the priciest singlefamily market in the state has been to the north in Palm Beach, an enclave for the rich and famous. Now, the strength of its neighbors is having a spillover effect on Fort Lauderdale and surrounding Broward County, giving buyers in this relatively more affordable luxury market a great opportunity for longterm future upside.

Downtown Professionals Fuels City’s Momentum

Two decades ago, Fort Lauderdale was mostly a destination for retirees seeking their little slice of paradise—“God’s little waiting room,” as Craig Studnicky, a veteran South Florida agent, jokingly referred to it.

But in the early 2000s, the city began to encourage more residential growth downtown, which helped to keep the area alive past 5 p.m. As more young professionals made downtown and the surrounding neighborhoods their home, that brought restaurants, fitness studios and bars, all catered to the new residents.

“Now downtown Fort Lauderdale is bursting with young life,” said Mr. Studnicky, who is the co-founder and CEO of the International Sales Group and Related ISG, which just opened a Fort Lauderdale office in March. “Everyone is in their 20s, 30s and 40s—it’s definitely not a retiree market anymore.”

“In real estate, location is everything, and we’re that centrally connected city in the region,” Ms. Morejon said. Plus, the new Brightline high-speed rail is a huge boon for commuters, bringing them to Miami in 40 minutes and Palm Beach in 45—an advantage during high-traffic time.

Its central location, with an airport nearby, is “what’s really driving higher price points and the type of residents who want to make Fort Lauderdale their home.”

A Burgeoning Luxury Condo Market

The success of Fort Lauderdale’s rental market gave condo developers greater confidence to invest there. In recent years, the city’s skyline has been growing with waterfront residential towers that fetch record prices.

In September, a penthouse in the Four Seasons Residences sold for $15.4 million, the highest price that Fort Lauderdale had ever recorded for a condo sale.

The Four Seasons Hotel and Residences, which opened early last year, was a catalyst that gave confidence to other condo developers in the area. Other brands have since followed with their own branded residences, such as Auberge Resorts Collection and the Ritz Carlton Residences.

“Now, all of a sudden, you have those flags there,” Mr. De Ona said. “It took a little bit longer, but the market has matured at its own pace.”

Mr. Kapoor said that those flagship brands have helped to raise the city’s profile.

“When you saw the Four Seasons go into our neighborhood, there was an understanding that there was where a luxury condominium on the beach should go,” he said. His firm, Location Ventures, is currently constructing the Edition Residences, which will rise 11 stories along the Intracoastal Waterway, just a few blocks away from the Four Seasons. A unit within one of Edition’s two towers starts at $3 million.

The growing demand for luxury has led developers to add in the kind of leisure spaces more typical of Miami’s glitzy towers, such as pool terraces overlooking the ocean, inhouse spas, and private training yoga and pilates spaces.

While the amenities may be comparable to Miami, the prices are not. Beachfront condos in Fort Lauderdale sell for around $2,000 a square foot, compared to $6,000 to $7,000 a square foot in Miami, Mr. Studnicky estimates.

Across Miami-Dade, Broward and Palm Beach counties, average condo prices increased 25% between 2021 and 2022, from $546,617 to $683,271, according to MLS data. Prime condo properties (the upper 10% of sales) saw a median sales price of $1.9 million in Fort Lauderdale, compared to $3.75 million in Miami Beach, according to a report from Douglas Elliman for the last quarter of 2022.

Price Growth in Single-Family Homes

Just like the condo market, Fort Lauderdale’s single-family home market has also seen major price growth, as buyers discover how much more mortar they can buy there compared to Miami or Palm Beach.

“You’re getting more bang for your buck on a waterfront home,”

—Mr. De Ona

Julie’s Exclusive Listings Also Featured in

“The end of 2020 was when the true ultra-luxury market in Fort Lauderdale started to truly gain traction and show increased demand for these premium properties,“ said Julie Jones, a real estate agent with Douglas Elliman. Fort Lauderdale saw a handful of homes listed this year for over $30 million— something that, five years ago, she never thought she would have seen.

“It’s a whole new market for Fort Lauderdale,” Ms. Jones said. “You can have $35 million residences next to a $4 million teardown. There’s still a lot of rejuvenation that’s happening.“

Price Growth on the Way

With so many companies opening up regional offices in South Florida or extending their remote-work policies, Florida is continuing to see high levels of in-migration. In 2022, it was the nation’s fastest-growing state, increasing in population by 1.9% to more than 22.2 million between 2021 and 2022, according to the U.S. Census.

That has helped Florida’s real estate market remain buoyant, even as the rest of the country sees declining home sales amid rising interest rates.

“The fact that business people learned to work remotely made Fort Lauderdale a place where people can actually come and live,” Ms. Jones said.

Realtor.com predicts that in 2023, the number of sales in South Florida will dip slightly by 2%, while price growth will continue to increase, by 3.4%.

Mr. De Ona is confident that the trend will continue long beyond 2023.

“We’ll continue to see healthy prices down here,” he said.

“The ‘spring break stigma’ has really disappeared from the city.”

—Ms. Jones

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Douglas Elliman's May Market Report states that newly signed contracts declined for the first time this year as new listings expanded for the first time in four months.

However, Julie has marketing strategies in place to respond to a shifting market. For a comprehensive break down over price point and the Florida market contact Julie.

• The 2022 buyers that have been sitting on the sideline are now making offers!

They appreciate that 2023 is a great time to invest, taking advantage of long-term appreciation, possible rental income if investing or planning for retirement, tax savings and potential hedge against appreciation. Limited inventory creates overall market competition and discourages price adjustments unless originally overpriced.

• Correct listing pricing and marketing strategies remain key.

Julie experienced multiple offers on three of her luxury listings in April and May; contact Julie for more details.

• Higher interest rates and overall prices have both impacted first time and move-up buyers locally. However, it is important to remember that rates are still low, and the range of different loan programs and initiatives enable buyers to purchase and then re-finance as rates adjust.

• Julie is experiencing a high level of buyer interest and encourages potential or previous sellers to return to the market while the inventory remains sparse. The market has adjusted since the pandemic and Julie anticipates a Summer and Fall of opportunity. Families continue to relocate for the new school year and foreign investors are returning to Fort Lauderdale!

At Home

Away this Summer?

2023 is moving swiftly into Summer. As plans formulate around vacations in the coming weeks Julie welcomes families relocating, business owners taking advantage of the South Florida markets and foreign investors re-visiting the luxury real estate arena.

Wherever your Summer plans take you, Douglas Elliman is located where luxury customers reside! With 100 offices and over 1,300 sales professionals Julie can connect you with California, Colorado, Connecticut, Massachusetts, New Jersey and, of course New York where the Douglas Elliman journey originated. Also, Julie is also using her Knight Frank passport (the world's largest privately-owned global agency) to network with agents that can bring foreign buyers to her exclusive listings. As one of only 500 members, Julie networks with affluent audiences in 60 countries, across 6 continents! On a local community level Julie continues to work with the Royal Dames for Cancer Research, The International Seakeepers Society, The Seafarers' House, LuxLadies and the SoFlo Mercedes G Wagon Club.

Julie personally wishes you a safe and pleasurable Summer. It is a great time to slow down, re-group, reflect and possibly plan your real estate goals and strategy. Julie has the proven track record and resources to make your Summer real estate goals a reality in 2023 or beyond. Please contact Julie at your convenience for a confidential meeting or advice.