January 2026 Outlook — Interest Rates, Demand Rebound & What Comes Next for Fort Lauderdale

According to the January 2026 National Report, 2025 was defined by economic and political volatility early in the year. This uncertainty significantly slowed buyer activity, particularly among first-time and affordability-sensitive households.

However, conditions shifted meaningfully in the second half of the year:

• Mortgage rates declined toward multi-year lows

• Stock markets rebounded to or near historic highs

• Household wealth increased for upper-income buyers

  
  

A Strong Signal: December 2025 Sales

After seasonal adjustment, December 2025 home sales were the strongest in nearly three years. This is highly unusual and often signals pent-up demand re-entering the market ahead of spring.

While total 2025 sales volume remained historically low, momentum is clearly building beneath the surface.

Why Fort Lauderdale Is Positioned to Benefit

As 2026 begins, demand is expected to accelerate faster than new inventory, particularly in lifestyle-driven markets like Fort Lauderdale.

Key local factors include:

• Continued migration into South Florida

• Strong luxury and cash-buyer segments less sensitive to rates

• Limited coastal inventory

• Rising insurance costs increasing the value of well-located, resilient properties

  
  

Historically, when rates fall and confidence returns, buyers move faster than sellers list, tightening supply and increasing competition.

Strategic Takeaways for Buyers & Sellers

• Buyers benefit from acting before competition intensifies

• Sellers who prepare early capture spring demand at peak momentum

• Data-driven pricing and local expertise are critical in shifting markets

  
  

Periods of transition often offer the greatest opportunity for those who understand the data and act decisively.

Written by Lourdes Maestres

The MPH Team – Compass Florida

Weekly Market Insights for Broward & Fort Lauderdale