Palm Beach County’s August 2023 Market Report – July 2023 Data – By Amy Snook

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August 2023 Market Report – July 2023 Data

The top question we get from buyers and sellers these days is “when is market pricing going to drop?”  We hear, “they say it’s coming,” every day and my response is the same every time because I have access to the powerhouse of data and, the experience of living in the market.  In my opinion, the Palm Beach County market, barring any major issues such as a pandemic or other catastrophic issue, will not be falling off a cliff anytime soon.

The latest market numbers from July 2023 show a very telling and promising story. Per Dr. Brad O’Conner, Florida Realtors leading economist, our overall housing market has stopped deteriorating although, admittedly, has not started increasing yet.  This matches what we are seeing in the market every day.  When homes are priced right, they sell – and per July data they are selling at 96% of list price.  Of course, homes not properly priced are still on the market which is why we are seeing inventory sitting longer.

Interesting factors to take into consideration are sales prices stayed almost flat (2.2%) from the same time last year, closed sales were down and we are now back to our traditional South Florida seasons, with a quieter summer. Anyone who stayed around this summer will tell you it was quiet with no waiting for a table at our favorite local restaurants.

The reality is that the real estate market, as a whole, is experiencing interest rates that are impacting our market.  As shared last month, the concept of “Marry the house, date the rate” still holds true and people are starting to accept the fact that rates are not coming down any time soon. In fact, cash purchases are down as a percent of total sales which is surprising to many.

In the news this week, I heard a reporter say we are back to a seller’s market with 2.9 months of inventory in Palm Beach County.  I know it’s bad but am going to say “shame on them” – they are not understanding nor properly reporting on our market conditions in PBC. 2.9, which is a seller’s market, applies only to homes under $600,000.  $600K up to one million is boding a balanced market and wait for it…..over $1M is now over the threshold of a balanced market inching towards a buyer’s market.

Sellers and Buyers – it is important that both you and your realtor understand these current trends as it impacts pricing, staging and strategy on your listing as well as offer prices and contract terms for our buyers.

Knowledge is Power! Are you ready to apply this month’s data to help you accomplish your goals? The Amy and Noreen Team welcome the opportunity to meet with you to discuss your specific situation.

 

Amy

Fun Events In & Around Delray Beach In August 2023 – Presented by Noreen Payne

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Want to know what top events are happening in Palm Beach County in the month of August 2023? Listen to Noreen Payne’s video overview!

Make sure to check out The Arts Garage upcoming events!

Join us every month for highlights of events in the area

Call us with any questions! 📲 561.571.2289

Palm Beach County’s July 2023 Market Report – June 2023 Data – By Amy Snook

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July 2023 Market Report – June 2023 Data

Results are out from the latest Florida Realtors analysis bringing us some good news for the data of the month of June 2023.

First, it appears that the impact of the interest rate hikes has finally started to settle, and people are starting to get used to the idea that rates are higher for the foreseeable future. Now that we have accepted this new world, people are starting to move forward with their real estate purchases but are adjusting how much they can now buy, potentially putting down more money to keep the loan-to value ratio low and other strategies as we discussed in the past.  “Date the rate, Marry the house” as what goes up will eventually come back down and refinancing down the road is most likely a part of many homeowners’ strategy.

Second, the gap between this year’s closed sales and last year’s closed sales is starting to shrink.  If you recall in my market report from the early part of 2023 it showed a very large differential of closed sales from same time last year.   In fact, if interest rates start to stabilize after this latest increase, it is possible we may surpass 2022 closed sale results for the second half of the year in South Florida.

Third, pre-pandemic times brought a slower real estate market in the summer months, and we are once again experiencing this seasonality.  Summer has been quiet around town but It is once again wonderful to see people taking summer vacations and traveling around the world.

With summer coming to an end, our activity has increased quite substantially in the past few weeks. Public schools reopen next week, and private schools are getting ready for opening just a few weeks away.   Life is coming back to South Florida, and I fully expect the waits to rise in all our local restaurants once again – but again, this is a great problem to have.

We are anticipating the influx of people back to our area will bring a change to the current inventory situation we have been experiencing.

Inventory in the market of $600,000 and below is low but stable as compared to the past few months.It is still a strong seller’s market with an average of 2.3 months of inventory.

Inventory in the market $600,000 to $999,000 is 3.25 months which still boosts a strong seller’s market; however, inventory has dipped from the past few months.

Our luxury market shows some interesting trends.  First, inventory is down in this category as well but still in a balanced market with neither the seller nor the buyer having an advantage.  Listings are taking longer to sell, and a large percentage of sales happened well below the listed price. Both the median and average sales prices have dropped year over year.

What does all this mean for you as a Buyer or a Seller?

First, Sellers, while inventory is down, one may think that this gives the sellers an advantage. I would say yes, it does, but only if you price your home right. The buyer’s sense of urgency and desperation is no longer what we experienced during the pandemic. If your home is priced too high, in this market, it does not typically result in a lower offer, the listing will simply sit. Once a reduction occurs to a price point that the market deems appropriate, then the showings and offers come. Ensure you put your best foot forward regarding staging, pricing and who you partner with to sell your home.  Marketing, advertising, and good old-fashioned sales 101 will make a difference.

Buyer’s, be patient. There is not a lot of inventory in most price points, so this is a great opportunity to learn about communities and determine where you want to be. This is a market in which we, as Realtors, end up spending a lot of time out in the communities with our clients educating them on the various areas so that when inventory does pick up and there are more choices, our buyers have already narrowed down to the areas they want to live.  This does not mean you cannot get into a home today, simply stating that when they are priced right, they are still going quickly and it most likely will take more time to get you into the right home at the right price.

Selling and buying simultaneously is a challenge in a lower inventory market.   Our suggestion to our Sellers in this situation is to consider selling your home, pocketing the profits and then being free to make an offer when the right one comes along.  Of course, there are other strategies in this scenario and ones that we evaluate on a case-by-case basis with our clients.

Our market is trending in the right direction in most categories, we simply need more inventory and expect to see an increase in this area over the next few months.

Whether you are selling or buying or both, we would love the opportunity to be your real estate partner.

Amy Snook

Amy and Noreen Team of Lang Realty