Are you contemplating selling or buying a property and want to learn about market trends 2022 in Pompano Beach? Well, who does not want to live in the beautiful and sunny South Florida? Real estate may have been a little bit unpredictable in the last few years and knowing the condition of real estate in Pompano Beach is a smart thing to know first before making any decision. We all know how the global economic downturn and inflation increase can affect the real estate market. Let’s find out about the latest Florida market trends and statistics below.
Rising Mortgage Rate and Growing Inventory
Broward County South Florida, where Pompano Beach is located, is not exempted from the increasing interest rates and growing inventory. According to the Miami Association of Realtors, median prices continued to rise steeply in the last month.
Residential sales shrunk 13% to 3,222 closings in Broward County last May 2022. Single-family house sales sank 12.4 percent to 1,431 closings, while condominium sales declined 13.5% to 2,701 sales.
The median sale price now for condos increased 20.7% to $253,500, and for single-family homes, it rose 26.4% to $586,000. In the month of May, Broward county’s total dollar volume climbed to approximately $1.9 billion.
What to Expect from Pompano Beach Housing Market
The house prices in South Florida will continue to increase by practically around 6 percent this year. Despite the rise in home prices, the Pompano Beach housing market is still doing great and is predicted to stay hot throughout 2022.
For homebuyers or renters, the increase in house prices may not be a piece of good news but for property investors, it is a different story. It is an excellent opportunity for sellers because it means that the prices are high and there is less selling competition. Sellers have the chance to select the best offers on their charts.
Also, because of the high taxes of cities like New York and other urban areas, a lot of businesses and new residents are relocating to South Florida. This means that many people and businesses are still targeting South Florida as their new homes or business spots.
On the other hand, Florida home buyers are having a rough time because the demand is still high, and the available homes are low because the best deals get taken fast.
Pompano Beach, FL Market Trends & Statistics for May 2022
The median price of Pompano Beach homes in the month of May is $375,000, and last year, it was $299,997. Today, the median price list is $385,000.
Median List Price:
- June- $385,000
- May – $375,000
- Last Year- $299,997
Median Home Size:
- June- 1,256 Sqft
- May – 1,253 Sqft
- Last Year – 1,261 Sqft
- June- $311
- May – $310
- Last Year – $263
Pompano Beach Housing Market Trends 2022
- Median List Price – $375,000
- Median $/Sqft – $310/Sqft
- Homes For Sale – 792
- Median Home Size Sqft – 1,253
- Median Days on Market – 43
There were around 792 houses sold in Pompano Beach for May 2022 and just 497 last year.
Pompano Beach Market Trends (Single Family Homes)
- Median List Price – $460,000
- Median $/Sqft – $360/Sqft
- Median Home Size Sqft – 1,458
- Homes For Sale – 281
- Median Days on Market – 7,486
For single-family homes, the median list price is $460,000, while it was only $377,000 in 2021.
Pompano Beach Market Trends 2022 (Condos/Townhouses)
- Median List Price – $329,900
- Median $/Sqft – $285/Sqft
- Median Home Size Sqft – 1,120
- Homes For Sale – 511
- Median Days on Market – 46
Condominiums’ or townhouses’ median list price in Pompano Beach, Florida, was $329,900 in May 2022, whereas it was $269,900 in 2021.
Pompano Beach Real Estate Market Summary
The median list price had a 2% increase from May to June 2021. The total number of home resale inventories is 845, which shows a 6 percent increase since last month. Pompano Beach’s median list price per square foot is $311 from $310 last May 2022.
The abovementioned data is from Movoto statistics and should only be used for informational purposes.
Florida Housing Market Predictions for 2022
It looks like the Florida housing market will still be in a positive trend throughout 2022. Even though there is a worldwide economic turndown, the real estate market will still boom for the remaining months of 2022. However, according to Chief Economist Dr. Brad O’Connor, the growing mortgage interest rates may be a great factor that can cause many changes in the Florida housing market.
Increase in Mortgage Rates Can Slow Down Price Growth
Home buyers will have a tendency to delay purchases when there is a higher mortgage rate. This will lessen the demand for buyers in some Florida markets, which can cause a gradual price increase. The homebuyers who stay put on what’s in the market will have more chances to find a house that they can afford due to slower price growth.
Home Sales will Slightly Lessen
The rise of post-pandemic migration in Florida has created a significant disparity in supply and demand. Because of this, home prices went up, and buyers felt unsure if they could find a house within their budget range. This leads to fewer house sales.
However, Florida market experts think this will be a good thing for the market health in the long run. It does not mean that the sales will fall to zero but just a little less than the desired sales. For instance, a nice house for sale today may only get less than five offers compared to 15 offers or more in an ideal flourishing market. Nevertheless, this scenario is not truly a letdown for both sellers and buyers. Because homeowners who are thinking of selling their homes will feel more confident, thus leading to more listings this 2022.
More Affordable Homes
The demand for luxury homes has exploded in the first half of 2021. All thanks to the wealthy homebuyers from California and the Northeast. This increased the prices of luxury homes compared to previous years’ sales. On the contrary, experts believe that the demand for luxury homes will decrease, and buyers will opt for more affordable homes.
Florida’s Smaller Markets Will Gain More Attention
Real estate experts foresee that the remaining half of 2022 will get more attention on Florida’s West Coast. Since many people from major cities are looking for a slower-paced way of living, smaller and more affordable markets will be their top choices.
Just remember that these Florida forecasts are not 100% accurate. The market can change anytime. Any forecast just gives you an idea of what to anticipate if you decide to sell or buy a house in the coming months.
Buying and Selling in Florida Market Today
A lot of people are hesitant if it is good to buy or sell a house in the Florida market today. But in reality, the question of whether or not to buy or sell is really up to your housing decisions. Take a look at what to consider when buying or selling in the Florida market.
For Florida sellers, there are still good chances that you will make a good profit if you sell your house this year. The median price list for Florida houses in December will be much higher than the annual average. November will be the best month to sell the house in Florida.
Mortgage rates and house prices are increasing in Florida, and the more affordable houses are being sold quickly. Here are some tips for buyers when buying a house in Florida today.
- Buy a house you can afford. There are many beautiful houses that can be so tempting to buy, but if you do not have the budget, then it only means that it is not yet time for you to buy the home of your dreams. Remember not to buy a house that is more than 25% of your monthly take-home pay. You can use a mortgage calculator in order to know home prices that you can afford within your budget.
- Make a huge down payment when buying a home. Save more to be able to pay at least 10 to 20% down payment. Doing this will save you thousands of money in the long run.
- Having a preapproved mortgage is also an advantage. This will give you more chances to acquire the house that you want because the seller will be confident that you are serious about buying the house. Having a preapproved mortgage means that you have enough finances to cover the mortgage rates.
- Hire a reliable real estate agent. This will be the smartest decision you will ever make as a buyer. Hiring an expert will save you all the trouble of finding the right home for you. A real estate agent knows how to work with your budget and will make sure that they will help you pick only the best homes in the market within your budget range. It will give you more freedom to do other things like your moving checklist and save you from the stress of finding a new home.
Best Time to Sell a House in Pompano Beach, FL
The best time to sell a home in Pompano Beach for more money is around July, based on housing transaction data. It usually takes around three months to close your home, so people who have listed their homes in April would more likely sell their houses for about 6% more than the average.
How Strong is the Pompano Beach Housing Market Today?
Pompano Beach’s housing market is somewhat very competitive today, with some homes getting multiple offers. For hot homes, they can sell about 3% higher than the median price list and go pending in about 15 days. However, the average houses sell below 1% pricelist and can go on pending status in about 39 days.
Why Live and Invest In Pompano Beach?
Having a property in Pompano Beach is truly a great investment to make. Pompano Beach is becoming one of the most famous locations, especially for luxury housing. The continuous development in the Pompano Beach area has made lots of businesses and homeowners relocate to this beautiful Florida City. Though Pompano Beach is not exempted from the rising mortgage rates and prices, this sunny city is still one of the best places you can choose to live or invest property in.
When looking for an investment property, one of the things that you should look for a place is its population growth rate. A decrease in population means that the tenants that will lease your rental home will shrink too over time. It can create a markdown in property and rental prices. Pompano Beach has a 0.93% per year population growth during the most current 10-year period. This positive growth means that there will be no decline in population anytime soon and that investing in Pompano Beach is a good idea.
It would help if you also considered the city’s property tax. Though Broward County has a much higher property tax than other Florida counties, a 1.07% property tax is not bad because the average property tax in the US is 1.1%. This means it’s still a little less than the average property tax in the country. Homeowners in Pompano Beach may also be eligible for homestead exemption, meaning you can pay lower tax if you are qualified.
A high unemployment rate is terrible for residential markets. It is also bad for the business sector because the place will have a hard time attracting new businesses. Who wants to invest in an area with a high unemployment rate? An unemployment rate increase could mean that the tenants may have difficulty paying rent. This is really bad not just for certain locations but also for the whole city’s economy. The Broward County unemployment rate was 2.5% in April 2022. This is lower than the previous year, which is 5.3%.
One of the things you should look for in a place where you will buy or sell a house is its level of diversity. Pompano Beach is a particularly ethnically-diverse city. A diverse city creates more opportunities for its residents. There are more possibilities for social mobility and social cohesion, and it can make businesses more competitive and profitable.
High School Ratings
School reputation is one of the top priorities you should look for in a city. If there are no good schools in the community, there will be difficulty in finding new employers. Tenants and home purchases will also be low if there are no good schools in the area. Pompano Beach has several good high schools, such as the Pompano Beach Institute of International Studies and Blanche Ely High School. Some of the best middle schools in Pompano Beach are the Pompano Beach Middle School, Somerset Pines Academy, and Crystal Lake Community Middle School. To date, there are around 128 schools in Pompano Beach.
These are just some reasons why having an investment property in Pompano Beach is such a great idea. The abovementioned factors are also some of the things you need to find in a city if you ever want to relocate or invest in a property. Other things to consider when you like to invest in property are its price-to-rent ratio, median gross rent, income levels, number of new Jobs Created, and cases of natural disasters.
We all know that the global economic crisis due to the COVID-19 pandemic and the Russia-Ukraine conflict has created uncertainties for many businesses, especially the real estate market. However, despite having these massive world problems, Pompano Beach real estate market is still doing well. There may be a little setback, but it does not mean it is bad in general.
Pompano Beach has the most stable housing markets in the whole of Florida, with so many new businesses coming in. So there is no reason to lack confidence when buying and selling a house in this amazing city. Just try to read all the information above so you can better decide whether you want to buy or sell property in Pompano Beach.
If you are still unsure of your decision, then talking to a reliable real estate agent in Pompano Beach will be your best option. Don’t hesitate to ask questions and try to voice out everything you want in a property. Whether you are buying or selling a house, it is always important to consult with an expert. A professional and experienced real estate agent will give you the best options and save you the hassle of acquiring or selling a house.
Real Estate Agent in Pompano Beach
If you have decided to move or plan to sell your house in Pompano Beach, then the first thing that you must do is to find a good real estate agent. Ed Cook is a professional realtor who has sold over 40 million dollars in real estate deals.