Ft. Lauderdale Oceanfront Condos for $100,000

Aquazul Condo

I’m contacted daily by many people who live here in the U.S. and in many other Countries, who are interested in purchasing Oceanfront or Waterfront Condos in Ft. Lauderdale and other areas of South Florida. Some of them are up-to-date on current market prices and have a realistic idea of how much they can expect to pay for a Condo. Others have mentioned that they expect to buy an Oceanfront Condo with 2 Bedrooms, 2 Baths, amazing Water views, and new (or like new) condition for $100,000.

Well, well, well…although prices are significantly discounted and many great deals are available, the vast majority of Oceanfront Condos aren’t selling for $100,000.

What happens is that the Media reports that the average Condo in Broward County or Miami-Dade County is selling for an average price of $100,000 – $150,000, however, what they don’t tell you is which properties are selling for those prices, where exactly they’re located, nor many other relevant factors. Properties located East and Waterfront ARE NOT the majority of the inventory of properties for sale and the majority of properties selling in the lowest price range are those that are located West (farther away from the Beach) and not Waterfront.

The lowest priced Ft. Lauderdale Waterfront Condos that are available are typically those in Buildings that are located on Ocean access Canals, Buildings without Amenities or with few Amenities, buildings with external Catwalks instead of interior Hallways, Units that are in original condition/in need of updates and repairs, and those that are least desireable in other aspects.

When considering a property purchase, it’s important to correctly evaluate the market in order to determine if appropriate properties are available.

Below, I included sales and listing data for the current Oceanfront Condo market in Ft. Lauderdale.

Within the last 6 months of closed Oceanfront Condo and Townhouse sales in Ft. Lauderdale, 182 Oceanfront Condos were purchased between September 1, 2009 – February 28, 2010 (I didn’t include March sales since the month isn’t complete yet).

Of the 182 Oceanfront Condos purchased, the purchase price range was $130,000 for a Studio Unit (0 Bedrooms and 1 Bath) in Ocean Manor Condo Hotel, built in 1957 – $2,700,000 for a Penthouse in L’Hermitage Condo with 4 Bedrooms, built in 1998. The median PURCHASE PRICE of the Units purchased was $374,500 (I used Median instead of Average since the average was affected by the $2,700,000 purchase). The Median List Price to Purchase price ratio was 89.09%.

For Oceanfront Condos that have 2 Bedrooms and 2 Baths, the average starting purchase price is ~$350,000 and, for 1 Bedroom Condos, the average minimum price is ~$225,000.

The Condos purchased are located in Buildings that were built from 1953 – 2008. Of the 180 Oceanfront Condos purchased, 140 were built between 1953 – 1980 (yes, you read that right). There are far more older than newer Oceanfront Condos in Ft. Lauderdale. Most Buyers whom I work with request newer Oceanfront or Waterfront Buildings ONLY, however, it should be noted that many older Buildings have Units that have been updated by their Owners and many older Buildings have undergone significant renovations inside and some have updated their Windows to Impact Windows so that Shutters are no longer necessary. In speaking with these Buyers, I’ve been told that their main concern with older Condo Buildings is the external, older Architectural design, despite the fact that renovations have taken place.

During the same period of time, 266 other Waterfront Condos sold in Ft. Lauderdale that include Intracoastal, Riverfront, and those that are located on Ocean access Canals. Their purchase price range was $28,000 – $3,000,000, with a Median purchase price of $225,000. The Median List Price to Purchase price ratio was 91.48%.

Elsewhere within Broward County, within the same time period, 939 Waterfront Condos and Townhouses were purchased with a purchase price range of $30,000 – $2,250,000, with a Median purchase price of $300,000, located in Hillsboro Beach, Deerfield Beach, Pompano Beach, Lauderdale by the Sea, Hollywood, and Hallandale.

Currently, there are 508 Ft. Lauderdale Oceanfront Condos listed through Brokers, with a price range of $100,000 – $7,995,000. The $100,000 Condo is a Studio Unit with 0 Bedrooms and 1 Bath, located in Ocean Manor Condo Hotel and the $7,995,000 Condo is a Penthouse located in Coconut Grove Residences. Of the Properties listed for sale, the Median list price is $499,000.

Ft. Lauderdale has only 3 Condos with new Inventory available, Coconut Grove Residences (a direct Oceanfront Building), Fountains on Ocean Blvd. (not Waterfront), and Sapphire Condo (not Waterfront, but offers Units with Ocean and Intracoastal views), not including Condominium Hotel inventory.

With Condos classified as Oceanfront, also note that some called “Oceanfront” are labelled as such because the Ocean is in front of the Building, but across the Street from it. Other Buildings are DIRECT Oceanfront Buildings and prices in those Buildings are higher.

The East, Waterfront location of Condos AND the availability of FAR MORE non-Waterfront property than Waterfront contributes to their prices.

Things that are happening in the current Condo Market include:

Properties that are increasingly correctly priced for the current market at the beginning of their entry into the market
Significantly increased sales
Significantly decreased Inventory
Properties selling for much closer to their listed prices
Significantly decreased number of days on the market when properties are listed for sale. Properties that are lowest priced and in great locations or otherwise very desireable for purchase are often purchased very quickly (many within 4 months or less), which wasn’t the case when sales were a lot lower (when sales were a lot lower, even many of the best and lowest priced properties sat on the market for 6 – 9 months or more)
Fewer Seller concessions (items such as assistance to Buyers with Closing Costs)
Availability of Waterfront Bank owned Foreclosures and VERY short market times when such properties are listed since East and Waterfront properties ARE NOT the majority of the Foreclosure inventory
For Resale Condo inventory, sharp price declines have already occurred and the most recent price declines that are happening in many cases are MUCH smaller than the previous declines