What to Expect for Condo Sales in Broward County in 2022
Are you wondering how condos sales will be in Broward County in 2022? While it’s impossible to predict exactly what will happen, considering the rapid growth and changes we’ve seen in real estate in South Florida over the past decade, we can make some predictions based on the trends of recent years and what we know about how people live and work here. In this article, we outline our predictions for condo sales in Broward County in 2022 and what buyers should expect from their local real estate market.
What a roller coaster ride
The condo market in South Florida has had its share of ups and downs over the last several years. This current downturn is certainly one of them. However, developers are feeling more optimistic now than they have been since 2013. There is a growing feeling that we’re approaching a time when condo sales will rebound, especially with new construction hitting record levels.
The recent decline in interest rates helped stimulate the market
Foreclosures are down, inventory levels are up and home sales have made a steady rise. In addition, after a dip in 2017, we’re now seeing mortgage rates starting to increase as well. Just as interest rates fell during 2018, they will also start climbing during 2019 and 2020. However, at only 4 percent (compared with an all-time low of 3.25 percent), even if they do start increasing now, they will still remain historically low.
The combination of these market factors has helped boost condo sales across South Florida: At first glance, one might think that there is no way anyone would buy a condo today—if you walk through any new development right now you’ll be hard-pressed to find any unsold condos!
Prices are up again
If you’re looking to sell a condo, now might be a good time. According to Zillow, condo prices are expected to increase 4% by 2020 and 9% by 2022. This is mostly driven by strong population growth, which has been a huge driver of South Florida’s economic recovery since 2010—even though the real estate recession. Overall, there are more than 2 million new residents in South Florida from 2010-2017 and there are expectations of another half-million new residents coming in by 2035. As these new people come into town, they will all need somewhere to live – which is where you as an investor come into play!
Sales are up again
South Florida real estate is always a winner. While some markets have slowed down, Florida still has a pretty solid real estate market, especially if you’re looking at high-end properties like condos. In fact, units that are priced between $200,000 and $400,000 tend to be in demand more than any other price range. Those of you who are looking at buying into these price points can rest assured that you’ll have plenty of options available to you by 2022. But don’t forget about commercial properties: they may not be as exciting as your own slice of paradise, but they do provide an excellent opportunity for long-term investments! Here’s what else we know about condo sales during 2022…
Condos dominate over single-family homes, yet they only make up 32% of the market
For years, single-family homes dominated home sales in South Florida. But that’s starting to change. Condos are quickly becoming more popular, thanks to rising prices and a decrease in inventory. In fact, condos now make up roughly 32% of all home sales on average over the past year. While still far from balanced, it’s a major shift from just a few years ago when condos made up just 15% of total home sales across South Florida. What does that mean for you? Your real estate agent is about to start knocking on your door more often than not!
Single-family homes dominate over condos, yet they only make up 42% of the market
With condos being so prevalent in South Florida, it might surprise you that single-family homes dominate over them when it comes to sales. There are two main reasons why: size and convenience. Condos simply don’t have enough room for families with children, and they’re typically less convenient because they aren’t attached to other services or schools—something most young families want. So where are condos hot? They’re hot along I-95 and A1A, mostly in Boynton Beach and Delray Beach. These areas will continue growing into 2022 as young professionals continue looking for affordable housing alternatives close to their offices.
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