September 2023 Market Report – August 2023 Data
I came across a report displaying listings nearing expiration and was surprised to see the significant number on this list. In our current real estate market characterized by low inventory and high demand, it’s unexpected to observe numerous listings in Palm Beach County remaining on the market for extended durations, and we are witnessing a resurgence of expired and canceled listings.
This situation is quite surprising in a market where demand consistently surpasses supply. So, what types of properties are actually moving? Interestingly, new constructions and renovated homes seem to be the most popular. From my perspective, homebuilders of new properties seem to be offering incentives to expedite their inventory turnover, while renovated homes present an attractive option for buyers looking for a hassle-free move-in experience. The prospect of construction, especially with soaring costs and challenges in finding reliable trades, appears daunting to many.
The prevailing higher interest rates continue to impact our market, leading to fewer closed sales compared to the previous year. However, intriguingly, the total volume of sales remains nearly identical to that of the same time last year due to the sustained increase in property prices. In fact, both median and average sales prices in Palm Beach County have witnessed an upswing.
Demand remains robust in Palm Beach County, and I suspect this holds true for most of Florida, driven by our favorable tax structure, pleasant weather, and abundant opportunities. Our phones have been constantly ringing with inquiries from prospective buyers seeking very specific properties. Most buyers conduct extensive online research, underscoring the importance of a strong marketing strategy for your listings.
Homes are taking longer to sell, emphasizing the need to adapt listings to stay relevant and noticeable. Although Palm Beach County boasts a higher percentage of cash buyers compared to other regions, pricing remains a critical factor in our price-sensitive market.
To enhance our market conditions, we need an infusion of more inventory and stability in interest rates. In the August market report, it’s evident that properties up to $999,999 are in a clear seller’s market for Palm Beach County homes—an observation consistent with much of the county.
In the luxury single-family home market, properties priced over $1,000,000 are still in a balanced market and teetering on the border of a buyer’s market. The abundance of inventory at this price point underscores the necessity for listings to stand out, both in terms of visibility to agents and appeal to potential buyers through appropriate pricing.
Conversely, the luxury condo market is unequivocally a buyer’s market, facing challenges due to the uncertainty surrounding future assessments for buildings to comply with new statutes affecting many condos close to the coastline.
Despite the challenges, our market has experienced a surge in activity over the past 30 days. We eagerly anticipate forthcoming market reports to observe the positive impact of this upturn in activity.
Amy
