November 2022 Market Report – October 2022 Data for Palm Beach County – By Amy Snook

It was a bit shocking to see the change in numbers this month related to inventory and balance of market – we have “felt” the change in the market but still surprised to see the uptick on the higher end market tipping the scales at the million dollar price point and beyond to the verge of a buyer’s market.

 

It is official, at the higher end market we are back to prepandemic seasonality, time to contract/closing and the skills needed to sell a home (now you have to actually have them😊).   While we are still above pre-pandemic price points, as to be expected, we are leveling off.  The demand in Florida is still stronger than most of the country – we attract the 2nd home, vacation home, rental market and those from up north that simply want our weather and lifestyle.  However, there are changes ……

 

Cash sales are down significantly, inventory is up across the board and new listings on market have slowed.  The mortgage rates and stock market portfolio losses are impacting all markets and Palm Beach county is not immune to these changes.  Don’t get us wrong, homes are still selling – we are in fact busy realtors – but the homes are taking longer to sell, our costs to market homes has increased significantly and our time for showings (yes, we personally show our listings) and open houses take more manpower.  Of course, we’re not complaining as this is what differentiates great agents from the pack. We’re sharing because it is a distinction from what has occurred over the past several years.

 

People often ask us whether this is a good time to sell and/or to buy.  The answer is yes; however, the strategy and the numbers change.  Specifically, some buyer’s obtaining a mortgage may have to reduce their price point to keep their monthly costs the same. And, what goes into selling your home, from staging to repairs should be considered more so then before.  Regardless, there is additional inventory now for buyers to choose from and sellers, there are buyers still wanting to buy.  Get ready to work with your Realtor (Amy and Noreen Team preferably) to ensure your home stands out from the rest.

 

For those of you who follow our monthly market report and follow the numbers indicating the market strength and leverage, they are as follows:

 

As you recall, balanced market is 6 to 9 months of inventory – meaning if nothing else came on the market how many months would it take to “consume” all of the inventory.  Over 9 months buyer’s market..

 

400,000 – to 599,999 – 4 months of inventory –

599 – 999,999 – 6 months of inventory – recently reached a balanced market and sellers have lost their advantage

1,000,000+ price point 9 months (yes I said it 9 months) – first time in 2022 that we have reached 9 months of inventory – there are now many options for buyers to select from, hence the price reductions we’re seeing on market

 

Understanding the market helps agents and consumers alike make educated decisions – this is why we spend time every month sharing our research and what it means to you.

 

If you have questions or would like to discuss the results any further, please do not hesitate to reach to us at 561.571.2289.

 

Amy

 

 

September 2022 Market Report for Palm Beach County – By Amy Snook

There are many variables that make September results interesting! The final results and evaluation of the next few months are going to be critical to really ascertain and give guidance on our Palm Beach County market.

 

First, the week leading up to now, Ian, as you can imagine, caused a pause in most of Florida’s market – the path of the Hurricane was unclear and therefore most sellers and buyers chose to wait before taking any action on their real estate decisions.  Further, for any buyer under contract to close on a home in September, if they had not yet bound their new insurance policy, insurance agents were unable to complete the process therefore causing closings to be delayed. The above skewed, of course, new listings coming on market, buyers going under contract and closings for the month of September.

 

Another variable, though may also be the trend for our future, is that we are back to season in our market.   Historically and prior to our pandemic years, we saw a drop off in summer months and the market did not typically pick back up until we approached our season – October, November timeframe. For the past 3 years or so, we were strong 12 months of the year with many people desperately wanting to relocate or purchase a second home in south Florida.  The lifestyle we offer in Palm Beach County fueled the real estate market.  With September’s results showing a decrease in almost all categories across the board, we need to wonder if we are back to “seasons” of real estate in Florida or were we simply impacted by the Hurricane.

 

Yet another aspect is mortgage rates. Cash sales were down again this month which means more people are financing the homes they are buying.  With interest rates higher than we have seen in many, many years and the threat of continued increases in those rates, we know that people are looking at lower price points than they did one year ago, and others are simply not able to purchase or purchase what they want and are holding off for now.

 

All three (3) of the above variables impacted our September results, we will be closely monitoring the next few months to really ascertain whether we are back to prepandemic market seasons and how much the interest rate will impact our unique market.

 

With all of that said, Noreen and I had a very busy September with both listings and buyers going under contract. I share that because I do think it is worth mentioning – when homes are priced properly, and buyer expectations are also set upfront – homes move.     People still want to sell and people still want to buy but realistic expectations are critical and the market is clearly indicating this fact.

 

In EVERY price point which we evaluated, months of inventory crept up by at least one month – $600- $900 and then $1,000,000 and up – is officially in a balanced market – for $1,000,000 we are actually approaching (on the cusp) a buyer’s market – but from a recommendation perspective of our team – we caution anyone to get too confident and treat the $1,000,000 and up price point as a balanced market.  Too many factors impacted September results to change strategy at this point; however, we currently have the most inventory at every price point over any month in 2022.

 

I hesitate to share specific numbers as almost ¼ of our month was impacted by the Hurricane (Ian) and we don’t feel that these numbers are truly an indication of where our Palm Beach market truly stands – cash sales down, median and average price points down, new listings and new pending are down as well and inventory was up almost 68% from this time last year.

 

All of the above said, we are extremely confident that our market is still very, very attractive and is a highly sought-after place to live, work and play.  While this month we experienced a shift, we believe it was a temporary shift (as to the degree of which we shifted).   We will not continue, at this time, to see unsustainable growth in price points but we will see properties moving at price points higher than the pre-pandemic times.

 

Our greatest advice in this market, choose your real estate partner wisely😊

 

Amy

We would love to referral clients to you! Amy Snook & Noreen Payne Lang Realty South Florida

We would love to be your trusted resource for all things real estate in South Florida, specifically Palm Beach County, as well as understand the market that you cover for future referrals. Our business takes us from Boca Raton up through Palm Beach Gardens, and all areas in between. Look for future emails in which we show you exactly which areas our team services. In order to be bestowed your trusted South Florida Realtor referral agent, we want you to get to know us a bit better. Watch this video to hear more about who we are and what makes us tick!

The Moorings Waterfront Community

Check out our listing on this waterfront community in South Florida. 3 bedroom, 2 bath condo, 1,515 square feet. The Moorings consists of three buildings with amenities galore. Including valet service, two pools, clubroom, a spa, and many retailers such as the Wine & Cheese Cafe and Nina’s Coffee shop to name the view.

 

Should A Buyer Attend Inspection?

Noreen tells buyers why it’s important for them to be at inspection.

How Do Agents Qualify A Buyer?

A seller asked Noreen and Amy how they will know buyers who viewed their home is qualified to buy. Great question. Get the answers here!

Helping Buyers Find The Right Home

Ever wonder how we find the right home for our buyers? Noreen gives you an inside peek into her tried-and-true process in this short video. She explains how she helps her buyers hone in on the neighborhood and the home that is just right for them!

 

To HOA Or Not To HOA

Is it better to choose a home with an HOA (homeowners association), or one without and HOA? Noreen reviews some pros and cons and offers some help with making this personal decision.

Latest Market Report – January 2022 Results for Palm Beach County

It’s the same ol’, same ol’ this month in the South Florida real estate market.

Once again, a low inventory of listings and an abundance of would-be buyers continues to make it a red-hot sellers’ market.

How will the forecast of increased interest rates change that, if at all? How will the war in Ukraine affect the U.S. real estate market, if at all? And now that America seems to be finally emerging from the Covid-19 shutdowns, will the influx of buyers into our Palm Beach County market continue?

These are questions that we are being asked daily from our clients and friends and while none of us have a crystal ball, we do feel our years of experience will help provide some insight.

Every month, we created a spreadsheet and conduct an analysis of the numbers of our market versus the rest of the state.

For example, our market is unique and usually differs from the reports summarizing the rest of the state and other price points across the nation. If you watch the local news, or follow real estate reports, a one-month inventory of the state lists a median sales price of $350,000. Palm Beach County’s median price, however, was $526,000 in January and our average price was $826,000. The huge differential is due to the number of seven-figure homes for sale which we have in Palm Beach County.

For those new readers to our report, understanding “months of inventory” is crucial. That term means a hypothetical that if no new homes were added for sale, how long would it take for every home for sale to be sold?

The statewide average inventory in January was one month, but in Palm Beach County homes under $999,999 is two months, but for over-$1,000,000 it has increased from December to January from three to five months, which was a needed increase toward a more balanced market.

Our Palm Beach market still attracts many new homeowners seeking our beautiful winter weather and outdoor lifestyle. Thousands more employees are working from home these days, which means they are free to relocate but still hold the same job. Also, thousands more are buying second homes in South Florida. We do not see this slowing down any time soon.

Some say that the market is softening when they see a price reduction in a home.

However, to us that just meant that agents had overpriced the homes to begin with. They were overpriced, even in today’s terms, and sat on the market. If you price your home right however, it will attract a buyers’ frenzy.

So, what does our future hold?

We believe that the upcoming increase in interest rates will have only a moderate impact in our market – mostly with the lower price points. But on $800,000 homes and above, we will continue to see mostly cash transactions. In fact, in January, there was a 30 percent increase in cash transactions from the same time a year ago.

We will have would-be buyers find properties — and emerge as the actual buyer should a bidding-war ensues against others who want the same home. And that is happening now more than ever. Should you want to sell and take advantage of this super-hot market, we also know how to price and market your property effectively to capitalize on all these factors.

We would love the opportunity to discuss your personal situation and what is best for you.

 

Amy Appears in the Sun Sentinel — 2022 Home Prices

Check out Amy’s interview in this Sun Sentinel article about home prices in 2022!
“It’s already increasingly difficult for home buyers to land a home in this market, as many offers that are contingent upon financing are overlooked,” she said. “What I’ve been seeing is a lot of people who have been waiting out this past year are now selling their homes to capitalize on the low inventory market and they are renting now.”
https://www.sun-sentinel.com/real-estate/fl-bz-home-prices-forecast-south-florida-2022-20211202-en5pdrtoxbdwbjphwzcxmm7pj4-story.html?fbclid=IwAR2qnxXlHc_pPQFU4VYL-O4mLk_qR5YzzSv4HOD6ROlYr01ndEpRYPPmyCM