While none of us have a crystal ball, the South Florida real estate market is projected to remain strong into 2018. Broward County, especially Fort Lauderdale, has been ranked as one of the top real estate markets in the country and this goes a long way in attracting both domestic and international buyers.
The single family market is expected to do well and to grow and exceed expectations since sites large enough for single family homes are becoming more scarce. Townhomes, as an alternative to single family homes, are becoming more popular. Small developers are buying older homes in Fort Lauderdale and replacing them with townhomes, which allows for greater density and without many of the restrictions of condominium development.
The luxury condominium resale market of $1 million plus properties may see more price pressure due to additional inventory as well as time on the market. The luxury resale condominium market is also facing competition from new luxury construction projects. The allure of new combined with the latest amenities and services is very attractive to luxury buyers. Older properties must be well maintained and modernized to compete with the newer inventory on the market. Improving infrastructure, upgrading common areas and improving amenities will go a long way in making resales more competitive.
The big unknown is the effect the new tax bill will have on the real estate market. One aspect of the tax bill which will limit the overall deduction for property tax, state income tax, and sales tax to $10,000 might give high income earners in the high tax states (New Jersey, New York, Connecticut, Massachusetts, and California) the incentive to move their families and businesses to Florida, which does not have a state income tax and has lower property taxes. Only time will tell if this will have a positive impact on our market, but the indicators are positive.