Florida’s housing market took a tumble in the second quarter of 2020, with Fort Lauderdale in tow. However, signs of recovery have been emerging on both the city and state levels. Overall, the 2021 real estate forecast looks positive and promising.
Want to know what the Fort Lauderdale market will look like in a year? Here are some key developments that buyers and sellers will encounter as we transition into the new year.
Population growth at the state level
Its pleasant weather and the relatively affordable homes here ensure that Florida’s population will continue to grow in 2021. Online real estate investment guide Mashvisor pegs the growth rate at 1.6% (roughly 350,000 new residents), with most of the population boost originating from newcomers moving across both state and national borders.
As a result of its rising population, Florida’s housing demand is expected to increase, especially in the rental market, which makes up 47% of the state’s housing stock.
Sustained property demand
Despite the second-quarter slump brought on by the delayed effects of the pandemic, Florida — and Fort Lauderdale, by association — will witness flocks of buyers driving up real estate demand. Signs of recovery in the city were already present mid-year, as buyers resumed buying plans that were stalled in the early months of the pandemic.
While the rate of growth in the next year won’t match the performance from the pent-up energy this past summer, demand will continue to trend upwards as mortgage rates remain at an all-time low. In line with this, Realtor.com forecasts a year-over-year sales growth of 3.7% for the Miami-Fort Lauderdale-West Palm Beach metropolitan area in 2021.
Rising property values
As property demand increases, so will property values. While Fort Lauderdale homes may not match Realtor.com’s estimate of 7.1% year-over-year growth for the state’s home prices, the city’s home values have been forecast to grow at a rate of 2.45% in the span of a year. That is an increase of nearly $9,000 by next year to add to the current median home value of $354,927.
For the most part, the low housing supply and high buyer demand will continue to drive the hike in home values. In turn, these rising prices will likely contribute to a hotter market where an onslaught of sellers will push Fort Lauderdale further into seller’s market territory come 2021.
But even if the market may appear to favor sellers in the near future, buyers interested in living in Fort Lauderdale, FL can still profit from following through with a purchase. Homebuyers who intend to hold their property for several years stand to benefit the most. They can see the value of their home grow by as much as 22.43% should they opt for 10 years of ownership.
While a speedy turnaround is unlikely in the near term, the outlook for Fort Lauderdale’s housing market in 2021 is certainly encouraging.
If you want to know when and where in South Florida to invest in a home, call us, the Connie Cabral Group, today at 305.776.0899 or send an email to connie(at)conniecabral(dotted)com. Our team of Certified Luxury Property Specialists goes above and beyond for our clients — from first contact to after closing.