Condo sales in Fort Lauderdale have plummeted due to the state’s ongoing real estate crisis, with the number of condo sales falling to 14 percent in the third quarter of the year.
According to a new report, the city recorded just 386 sales during that time, while the average price also fell 3.9 percent to $427,500.
Overall, South Florida apartment sales fell significantly in major cities as inventory rose to 1,557 units.
The crisis also comes after Florida began requiring condo owners to undergo investigations to comply with new state laws following the collapse of the Champlain Tower South in Miami-Dade County, which killed 98 people.
The latest report, written by Jonathan Miller of Miller Samuel, says sales are down in part because mortgage rates are high.
In Fort Lauderdale, seen here, the number of condos sold fell 14 percent to just 386 sales, while the average price also fell 3.9 percent to $427,500.
Miller said: “In most of the markets we cover, prices are rising, sales are declining modestly and listing inventory is increasing.
The report, written by Jonathan Miller of Miller Samuel, said sales have fallen in part because mortgage rates are high
“But inventory is still strong or significantly lower for most markets [pre-pandemic] levels.’
Miller added that the proportion of cash sales remains high across the area, but described it as “not record levels, but not normal either.”
In nearby Palm Beach, condo sales bucked the trend and rose 70 percent to 39 closings. However, the stock also rose to 45.5 percent.
Outside of Fort Lauderdale, sales around Miami Beach and the barrier island market fell 23 percent.
Condo sales fell 25 percent overall, while single-family homes fell 3.3 percent to 89 homes closing.
As in Fort Lauderdale, inventory for apartments rose by a staggering amount, up 40.6 percent to 3,483.
In nearby Palm Beach, seen here, condo sales bucked the trend and rose 70 percent to 39 closings
Outside of Fort Lauderdale, sales around Miami Beach, as seen here, and the barrier island market fell 23 percent
The Champlain Tower disaster has lifted the tide of widespread neglect of old apartment buildings, with associations delaying crucial repairs to save money.
Condo owners have begun to fight back against the investigations related to the Champlain Tower South collapse because of the additional costs to them.
Darlene VanRiper, who is leading Harborage Condos’ efforts to scrutinize the new laws, said an engineer has recommended $6,480,000 in repairs to the buildings to meet SIRS’ needs – or an additional $3,000 per house per month.
“We have to do something, and we have to do it now,” Darlene VanRiper told the local NBC affiliate.
‘It’s time to come together. You’d be amazed at what people can do when they’re united.’
In South Florida alone, an estimated 360,000 property owners may not be able to afford the repairs required by the new law.
It comes after a years-long trend of Americans flocking to the state for sunny weather and low taxes showed signs of stalling.
The Champlain Tower disaster has lifted widespread neglect of old apartment buildings, with associations delaying crucial repairs to save money
Newcomers to the state have listed their homes in part because of the recent hurricanes that have devastated the area.
It’s a remarkable turnaround from 2021 to 2023, when Florida became by far the fastest-growing state.
The Covid-19 pandemic allowed many people to work remotely for the first time, making the temperate climate of the southeastern US more attractive than ever.
Demand has declined due to rising insurance costs, which are inextricably linked to natural disasters, and high housing prices.
Experts say prices – which are at all-time highs in some areas – have not yet caught up with buyer sentiment and a major correction is coming.