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Meat Market – 2000 NW 19th St, Boca Raton
November 2023 Market Report – October 2023 Data
Our phone has been inundated with inquiries following the recent news release highlighting a significant drop in pending sales, marking the lowest figures in many years. The reports suggest a return to a Seller’s market due to inventory dwindling to 3.2 months, well below the threshold for a balanced market.
However, it’s crucial to recognize that the media’s portrayal is just a snippet of the whole narrative. While their statements may hold some accuracy, they fall short of capturing the complete picture, much of which is positive. I urge caution in accepting media reports as absolute truth. Feel free to reach out to us at any time, allowing us to provide a comprehensive understanding of the real dynamics in our market.
Certainly, pending sales saw a decrease but of only 97 homes in Palm Beach County compared to the previous month (1034 down from 1131). Yet, when considering the same period last year, a more seasonally relevant metric for our market, there is an increase. New listings entering the market have also risen by 11.4% from the corresponding time last year.
Nationally, people have been in a holding pattern, monitoring interest rates, the stock market, and global events. A recent drop in interest rates, coupled with the acknowledgment that these rates are our new reality, has spurred Sellers to act. This might not be universally true, but in our Palm Beach County market, a sought-after destination, the situation is more optimistic than the news suggests.
Cash sales have seen an uptick, our median sales price is on the rise, and although the average sales price has dipped, it’s attributed to the luxury market’s slower pace compared to price points under $1,000,000. Consequently, we now have 10 months of inventory, classifying it as a buyer’s market. However, price points below $1,000,000 remain in the Seller’s market territory with inventory below the 5-7 month range considered balanced.
Despite the prevalence of luxury homes skewing the average, our local real estate market is far from doom and gloom. We’re actively listing and selling homes, employing creative contracts with seller concessions, innovative marketing strategies, and increased investments in open houses and broker events. The palpable surge in activity and enthusiasm in the South Florida market indicates an upward trend, and I eagerly anticipate next month’s report reflecting the impact of our seasonal dynamics.
Amy
October 2023 Market Report – September 2023 Data
Inventory in the real estate market, while still lower than pre-pandemic levels, is showing promising signs of improvement. New listings are gradually increasing, resulting in a higher number of active listings at the end of September compared to the beginning of the month. One contributing factor to this positive trend is the decision by the Federal Reserve to hold off on raising interest rates during their last evaluation. As a result, people have adapted to the current interest rate environment, making them more willing to sell their homes and embark on their next real estate ventures.
For those of us immersed in the real estate industry, there is a prevailing sense of optimism, with increased activity from both buyers and sellers. The Amy and Noreen Team, for instance, has been actively engaging in contract negotiations and bringing fresh listings to the market. However, it’s crucial to emphasize that the pricing of listings remains a critical factor in this market. Listings that align with the market’s expectations for the right price tend to attract more showings and offers, leading to faster transactions.
Determining the right price, though, is not straightforward due to the unique circumstances of the past 6 to 9 months. The market did not follow its typical pace during this period. To address this challenge, some real estate professionals have begun looking back two years to identify trends. In certain cases, appraisers are being consulted to establish an appraised value, which then serves as a foundation for pricing strategies. This approach is particularly relevant in the Palm Beach County Luxury Market, where an oversupply of homes, with over 9.6 months of inventory, favors buyers. This has led to numerous price reductions as homes in this segment spend more time on the market compared to properties in other price ranges.
Interestingly, while the total dollar volume of closed sales remains consistent with the same period last year, the number of closed sales has decreased year over year. What’s remarkable is that the average price has risen in recent months, with the median price remaining almost identical to previous months. This indicates that the overall closed sales volume is influenced more by the price point of each sale than by the number of sales. The enduring high demand in Palm Beach County is apparent, but buyers are becoming more discerning, paying close attention to both property quality and pricing. Realtors are consequently investing more in marketing to attract potential buyers, and prospective buyers are actively exploring neighborhoods and attending open houses.
In the sub-$1 million segment, it continues to be a seller’s market. The local news outlets report a “3-month supply” of inventory at the end of September which would lead you to believe that the seller has an advantage at all price points under the $1 million mark, It’s essential to remember that these reports often aggregate all price points, which may not accurately represent your specific price range. The sub $600,000 market is at the 3 months of inventory but within the $600,000 to $999,000 range, the months of inventory have reached approximately 4.54, nearing the balanced market threshold of 5 months. In contrast, the luxury market still faces an oversupply, with over 9.6 months of inventory, offering discerning buyers a range of options.
Sellers need to be proactive and thorough when marketing their homes, focusing on staging, curb appeal, competitive pricing, flexibility in showings, open houses, videos, professional photography, advertising, social media promotion, postcards, and other strategies to maximize their property’s exposure. Collaborating with real estate professionals can help tailor a strategy aimed at attracting potential buyers.
Amy
Hey there, it’s your Spooky Neighborhood Realtor, and I’ve got the lowdown on kid-friendly October adventures in Boca!
Oct 22nd – Halloween in the Garden
Gumbo Limbo Nature Center
4:30pm – 7:00pm
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Oct 13th – 15th – Boca Pumpkin Patch Festival
Mizner Park
4pm -9pm
Click HERE for more details
Oct 21st – Halloween At the Y
YMCA
6:30pm – 8:30pm
Click HERE for more details
Make October unforgettable with these family-friendly activities in Boca! Follow my page for the scoop on all the coolest activities, events, and hidden gems in our amazing city! 👨👩👧👦🍂👻
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242 Rutland Blvd, West Palm BeachSeptember 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
Want to know what top events are happening in Palm Beach County in the month of October 2023? Listen to Noreen Payne’s video overview! Join us every month for highlights of events in the area! Call us with any questions! 561.571.2289
Happy Halloween! 🎃
🌴🏖️☀️ Welcome to Paradise at The Boca Raton!
🍽️💼 Whether you’re diving into the crystal-clear pool, soaking up the sun on the private beach, savoring gourmet delights at several high-end restaurants, tee’ing off on world-class greens or sipping cocktails by the shore – this is where luxury meets leisure! 🌅🍸 Discover the Boca lifestyle and why you should make this your dream destination. @the.bocaraton
Amy & Noreen Team of Lang Realty
561.571.2289
Amy Snook answers a popular question on divorce and real estate. Before you make a decision on buying or selling, let’s have a conversation. We would love to educate you and come up with the right plan to help you sell or buy a home in this specific scenario! Amy Snook & Noreen Payne 561-571-2289
