Even as real estate prices in other South Florida communities began slumping in 2006, prices in Hallandale Beach were taking off, at least on paper.
According to statistics compiled by Blockshopper, Hallandale Beach home sales showed a whopping 611.4 percent increase for 2007 over 2006, while median prices rose 357.1 percent for the same period.
While these figures implied that that the 80-year old oceanfront community in South Broward County was thriving, locals say those stats were misleading.
Brokers say that until a couple years ago there hadn’t been any new development there for about 25 years. Yet, like nearly every community in South Florida, Hallandale Beach got swept up in development frenzy of the last few years.
New developments, particularly The Yacht Club, Duo and The Beach Club sent area prices and sales numbers skyrocketing. But, according to Burt Segall, a principal at a Coldwell Banker office in Broward County, the flood of units has now pushed prices down 30 to 35 percent to the mid $200s a square foot.
According to Condo Vultures, average prices in south Florida have dropped 29 percent from their highs. These days Hallandale Beach’s property market is suffering from the same problems of high numbers of foreclosures and walkaways as neighboring communities. Indeed, less than two years after it opened nearly one third of the 1,200 units at The Beach Club are for sale. Older units have seen their values tumble too, going for about $150 to $170 per square foot.