2023 Pompano Beach Real Estate Market Predictions

2023 Pompano Beach Real Estate Market Predictions

  • Jeremy Willard

Pompano Beach, Florida, is a serene coastal town in the northern part of Broward County. The community is north of Fort Lauderdale and south of Boca Raton, featuring beautiful resorts, expansive natural areas, and upscale recreation like golf, tennis, and boating. The beachside lifestyle and small-town vibe make it a perfect spot for families, professionals, and retirees.

One of Pompano Beach's biggest draws is its diverse housing options. Whether you are looking for a luxurious oceanfront condo or a spacious single-family home near hiking trails, there is something for everyone. The area offers new construction and updated historic homes, allowing residents to live in modern comfort or historic charm. Exclusive communities also boast luxury amenities like tennis courts, community pools, and fitness centers. Learn about the local market and housing predictions in 2023:

Why market data and predictions are helpful

Real estate data is a critical component of the real estate industry. Whether you are a buyer, seller, or investor, it is essential to understand the data available to make decisions and form appropriate expectations. Real estate data consists of a range of metrics, such as property values, supply and demand, and yearly comparisons, that can provide valuable insights into the behavior of the real estate market.

Increasing home value

As we dive into real estate data, one question frequently arises: what is home value? Home value is the estimated price a property would sell for in the current market conditions. It considers many factors, such as location, square footage, amenities, and the property's condition.

Home values are increasing in and around Pompano Beach. Single-family homes in Broward County had a median home price of $585,000 in May 2023. The median price is nearly the same as May 2022 but shows increases from the median price in January 2023 of $540,000. The price of townhomes and condominiums is also increasing.

The county had a median price of $270,000 in May 2023, up 6.5% from 2022 and remaining level since January 2023. While these numbers are consistent for traditional homes and condos in Broward County, home values are heavily influenced by location. Pompano Beach is a premier waterfront location with upscale amenities, bringing home prices to the millions.

How it impacts buyers and sellers

Home price is one of the most critical variables in the real estate market and significantly impacts buyers and sellers. For buyers, affordability is determined by the price of the home, and it helps them evaluate the investment's potential. Contrastly, sellers use home prices as a gauge to set the asking price of their property and target a specific buyer. Therefore, it is crucial to have an accurate understanding of home prices to ensure you are not under or overpaying for a home or setting a misguided list price.

Active inventory

Active inventory represents the number of properties currently available for sale. This metric can give insight into demand levels and how quickly homes sell in a particular area. In May 2023, active inventory in Broward County rose to more than 2,700 single-family homes, up from 2,215 homes in May 2022.

While the inventory is more than the previous year, it is decreasing in 2023. Active inventory for single-family homes in January 2023 was nearly 3,455 homes, decreasing to less than 3,000 by March 2023. Active inventory for townhouses and condominiums in Broward County remains steady, with nearly 4,400 homes for sale, up nearly 70% from 2022.

How it impacts buyers and sellers

Supply and demand are fundamental concepts in real estate. When there is a decrease in supply, this can have a significant impact on buyers and sellers. For buyers, a decrease in supply can mean fewer options are available, potentially driving up prices and making it difficult to secure a home among the competition. For sellers, a decrease in supply can work in their favor, potentially allowing them to receive more competitive offers and make a higher profit.

Time on the market

When buying or selling a property, time is of the essence. The median time to contract is the median number of days it takes for a home to go under contract, and the median time to sale is the days it takes for a home to complete the sale, including inspections, negotiations, and closing day.

In May, Single-family homes in Broward County had a median time to contract of 25 days, up from 11 days in 2022, and a median time to sale was 65 days, up from 50 days in 2022. These critical market statistics have also decreased in 2023 when the median time to contract was 40 days and the median time to sale was 76 days in January. For townhomes and condos in the county, days were similar, with the median time to contract 26 days and the median time to sale 67 days in May 2023.

How it impacts buyers and sellers

When a property sits on the market for a longer period, it can lose value in the eyes of potential buyers. A property that has been listed for an extended period can make buyers question why it has not sold yet. Conversely, when trends show properties listing for fewer days, buyers may feel pressure to secure a home quickly by offering more money or reducing complex contingencies. Less time on the market is an advantage for sellers, who can expect a quick sale and favorable contract terms.

Ways to navigate and interpret market changes

Navigating the market and interpreting market trends is crucial to understanding real estate data. One effective method is to identify patterns and trends in housing prices over time, which can provide better information than stand-alone data from one month. The best way to find accurate data and interpret its advantages and disadvantages for your unique goals is to work with an expert local real estate agent.

Get connected and learn more about living in a coastal community

We Can Help Network is a Pompano Beach real estate team, including renowned luxury specialists Ken Calhoun and Jeremy Willard. Work with experts to get accurate data and see why locals love living in Pompano Beach.

*Header photo courtesy of Shutterstock

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