Ft. Lauderdale Looks to Reposition its Place in Florida Housing Market

Typically viewed as a haven for college students on spring break, Fort Lauderdale is looking to change its image. Hoping to take advantage of the exodus of those who can no longer afford a Florida home loan in nearby Palm Beach, the region has seen an above-average growth in population over the last couple years.

A strong economy has also helped drive median home prices 58% higher from 2003 to 2005, compared with a 22% rise in the national median, according to the Florida Association of Realtors and the National Association of Realtors. By the end of last year, median prices in the area hit $369,000, well above the fourth-quarter national median of $213,000.

However, as sales began to fall late last year, many brokers say this tropical seller’s paradise may be hitting a cool spot. Richard Barkett, chief executive of the Realtor Association of Greater Fort Lauderdale, expects appreciation levels to slow to the 5-7% range in 2006 from the double-digit pace of recent gains.

Other brokers note softening investor interest in the area and increasingly common price reductions on listings.

“A year ago I could sell something in a half hour with a phone call to an investor,” said Jeanette Nogosanti who owns Oceanique Realty in Pompano Beach, Fl. “Now those investors have houses they want to sell.”

Overall, Ft. Lauderdale is still an attractive alternative for those seeking a reasonable Florida home loan. The recent cooling off in sales is simply symbolic of a slightly slower housing market across the state.