As a final treat, prior to the public release of the full version of my 2016 Broward’s Real Estate Yearbook, I wanted to share with my SFGN and WMG readers some insights and observations about what’s happening in some of the other neighborhoods in East Broward.
- Bifurcation. As I look around in a lot of the neighborhoods I cover, I see a split in the types of houses that are selling. We still see interest in very high quality homes, fully upgraded with premium finishes. These homes also will sell at premium prices, and help explain why median sales prices continue to increase in the face of declining sales volumes. There are some discerning buyers willing to pay top dollar. Otherwise, the checkbooks are shut unless it’s a steal.
- Northeast waterfront cooldown. Personally, I think waterfront homes in Pompano and Deerfield (and to a lesser degree Lighthouse Point) represent better relative value than waterfront homes in Coral Ridge or The Landings. That’s still true, and perhaps even more so now. Prices of waterfront homes north of the Fort Lauderdale city line softened in the last year by about 10 percent.
- North Andrews Gardens recalibrated. In mid-2015 it was clear that the area of North Andrews Gardens south of Commercial Boulevard had become very desirable to buyers. Premium homes there had passed the $250k barrier and quickly approached $300,000. This did not persist into the most recent period, as we saw a flattening of prices at the upper end south of Commercial. Conversely, the area north of Commercial saw continued robust price increases and is now seen as nearly comparable in value to the south side.
- Coral Ridge Isles. Strong 2014-15 high season pricing did not continue. Prices in Coral Ridge Isles dropped about 10 percent in late 2015/early 2016 before recovering slightly in the past few months.
- South Middle River treading water. This neighborhood – Island City adjacent – is still waiting for a breakthrough.
So can I gaze into my Crystal Ball of Geekery and see what is coming for the 2016-17 High Season? Fortune telling is a dicey business. But I will offer two thoughts.
First, there could be more interest in homes that need some substantial amounts of updating, especially if interest rates go up and people start to look at a home purchase here as more of a longer term proposition.
Second, people really need to look at home purchase here as a longer term proposition. The evidence was starting to appear last year, but it is manifest now. Double digit annual price increases are the exception in this market, not the rule. Unless you are in a special market situation or find an exceptional deal, a 10 to 15-year time horizon is appropriate for single family real estate in east Broward.
James Oaksun, Broward's Real Estate Geek(SM), is Broker-Owner of New Realty Concepts in Oakland Park. In addition to having degrees from Dartmouth and Cornell, he is a Graduate of the Realtor Institute (GRI).