Want to know what top events are happening in Palm Beach County in the month of August 2022? Listen to Noreen Payne’s video overview. Join us every month for highlights of top events in the area!
Based on June numbers, our Palm Beach County July market report is proving to be very interesting. If you watch, the media is touting doom and gloom for real estate around the country – and while things have definitely slowed from the frenetic pace that we’ve experienced over the past few years, the Palm Beach real estate market is far from doom and gloom. In fact, as we’ve stated in our past reports these last few months, when marketing properly and priced appropriately, homes are selling…period!
HOWEVER, our reality is that the market that “was” is not the same now. That market was unsustainable, and we all needed it to soften a bit. Inventory was lacking at all price levels but we now have more inventory! Demand is still high and with inventory increasing, Buyers have more choices. Now more than ever, when Buyers have options, Sellers need to pay more attention to how their home looks, how it is priced, and how it is marketed. If you have been reading our reports you know that one of the leading indicators of the market is inventory – if nothing new came to market – how many months would it take to “consume” all that is available – you also learned that a balanced market is 5-7 months of inventory; below 5 is a seller’s market and above 7 is a buyer’s market. While under $999,000 is still a Seller’s market – our months of 1 or 2 months of inventory has now reached 3 and 4 months of inventory – inching towards a balanced market. Over $1,000,000 – is sticking at 5 months – low end of balanced but nevertheless balanced.
So, what makes this interesting? Well, as expected, the higher interest rates have cooled the market (at varying price points), certainly hasn’t stopped the market but rather slowed it down. For the first time within the past year, June results show that year over year results have declined. As it relates to closings, last June happened to be higher than normal but we cannot ignore the fact that the astronomical increases have ceased. Closed sale numbers are similar to pre-pandemic numbers; however, prices are up substantially.
In Palm Beach County, prices remain strong but the price points are responding to the increase in inventory. There are simply more options for people. Driving around we see more signs – we see more price reductions – we have more competition.
So, Buyers, this is the first month in sometime that we are reporting good news – there are more properties!
Sellers, it continues to be very good news for you as well. Buyers are still relocating to our area! Price properly, ensure marketing is firing on all cylinders and ensure you partner with a Realtor or Team who knows how to get you to the closing table. Given that there is more inventory, buyers may exercise their right to cancel under inspection. Experience and Finesse is needed to keep deals together .
Looking for the right partners? The Amy and Noreen Team of Lang Realty are ready to spend time with you, educating you on the market and rolling up our sleeves to continue doing what we do best!
The results are in from May’s Florida real estate market and as predicted in our last few updates we are at a balanced marketnow for $1,000,000 and higher in Palm Beach County. We have watched it tick up slightly each month and with the influx of inventory we are officially there. That is a good thing for all of us. However, in Palm Beach County – all price points are not a balanced market – $600,000 and below is still very much a strong seller’s market. As we have shared many times – the average across Florida (and across the country for that matter) is not representative of Palm Beach County – to a degree, we are protected with many people still wanting to come to our area and enjoy the benefits of living in South Florida.
All of that said, there are some stark realities that we need to accept – current events in our world is impacting the real estate market as a whole. We are seeing what we would call a “pause” people evaluating their next steps – leveraging more of their wealth in real estate and less in the stock market; will home prices hold their value? This analysis in conjunction with an increase in interest rates and more inventory coming on, in all segments; we are now back to pre-pandemic marketing strategy of selling homes – for those of us agents who know how to really sell a home versus simply putting it in the MLS – this brings a big sigh of relief. We can move back to quality and our clients can trust that they are working with experienced professionals.
Showings with agents “selling” the attributes of a home, staging a home, curb appeal, spending money to really market a home – print media, social media, videos, photography, drones, 3d tours, advertising – it is all coming back for our luxury market. While we know many potential sellers reading this report are thinking “how is this good for us selling our home” (versus flying off the shelf that we have seen for the past several years) – please know that, simply put, if our market continued to increase at the rate it has – it is not, in our humble opinion, sustainable. At the same rate – we are still experiencing the effects of supply and demand; supply continues to be lower than pre pandemic. Our area is highly desirable and homes will continue to sell.
Who you partner with to Sell your home or Buy a home – really makes a difference now more than ever.
If you want to learn more about the market or how we can help you with your own real estate needs, please contact us at 561-571-2289
Palm Beach County April 2022 real estate market report highlighting the changes that are being seen due to rising interest rates, leveling off of pricing, but does include lots of good news for sellers and buyers alike.
No one has a crystal ball as to what the future will hold for Palm Beach County real estate but while you can feel a shift in the frenetic energy that consumed our market for the past several years, there is no denying that demand is still strong for our market.
So what does that mean for us Palm Beach County Residents? Lets look at the April report showing March 2022 final numbers.
First, similar to last months’ report, under $999,999 is still a strong seller’s market showing 2 months of inventory – versus a balanced market which is typically 5 to 7 months of inventory. Over one million is holding steady for several months now at 5 months of inventory – just on the cusp of a more balanced market. These results of course take into account closed sales which were under contract earlier in the year and so the next few months will be important as we continue to analyze the market.
Now, what’s different this month than the past few months of our market report? Several factors, closed sales and pending sales are both down from the same time last year- this is no surprise when you look at the fact that the sense of urgency to relocate to south Florida has waned slightly and mortgage interest rates are up. Interestingly while total volume of closed sales is up due to the higher price per sale, in Palm Beach County our median sales price is up 23% while our average sales price is down 7.1% – as we have shared in the past the differential between median and average is great in our Palm Beach market due to the sheer number of higher end homes we have in our county versus other counties.
Also watching our multiple listing service we are starting to see price reductions more frequently than we have over the past few years when listings came and went under contract before you could even say the word “listing”. Now personally, I don’t necessarily feel this is 100% indicative of a slowing market but rather shows that the listing prices of many new homes going on market are not taking into account everything that is going on in the market and in the world. Our listing prices are not increasing at the rate in which they were over the past several years.
Our advice, be aggressive yet realistic and strategic on your list price. When we meet with Seller’s, we review the active comparables, your competition, pending, what is selling and then closed over the past 90 days or so. Important to also note is what someone can buy at the targeted price point – there aren’t a lot of options for buyers therefore looking at the entire picture together, Listing Agent and Seller (s), to make the pricing decision. Thank Goodness, marketing once again matters.
We are fortunate to have a higher demand than most areas around the country – buyers want to relocate to our area full time, want a second home or even just a seasonal vacation home. A balanced market is good for us all so while the numbers showing a decrease year over year can be concerning, in this case, I would say it is a sign of our real estate market heading towards a more stable market for both buyers and sellers alike.
What an incredible day at the Delray Affair! Back after 2 years for the 60th year!
The chambers biggest fundraiser was amazing. Great weather, good vibes, happy people. Congratulations to the chamber’s dream team and FMG for making it happen.
Incredible! Impact 100 Palm Beach County awarded seven $100k grants to deserving local nonprofits at their Grants Award Celebration!
Noreen loves working with this organization alongside amazing people like Grant co-chair Ingrid Kennemer and is looking forward to working together on the next Grant cycle.
Congratulations to the 2021-2022 $100,000 Grant Recipients!
Want to learn more? Reach out today (561)-571-2289
Spring is on its way, and March in Delray Beach is bringing lots to buzz about — here’s Noreen with the details of this month’s events and how you can join in on the action!
For our first market report of the new year, we’ll be reflecting on the results of December 2021 and the newsworthy events of January 2022—sit back and relax, there’s plenty to talk about, and plenty that affects you as a consumer!
Let’s start with December—as everyone can guess, we’re still in an extremely strong Seller’s market. As you’ve heard us share time and again, when we talk about market conditions through the lens of inventory and consumption rate, a balanced market provides for anywhere between 6 to 9 months of inventory. Above the 9 month mark you’ll find a Buyer’s market. Below 6 months, a Seller’s market. Most reports summarize market inventory on a basis of price point average. In our Palm Beach County Market, which includes many areas of luxury homes, analyzing based on price point is especially important. However, in this low inventory market, there is only a slight difference at the price points ranging from 2 months of inventory from $300,000 up to $999,999 and 3 months of inventory over $1,000,000—a far cry from the 9 months of inventory over $1,000,000 just one year ago. Any way you look at it, the low inventory and influx of buyers to our area has built up quite the Seller’s market.
December results show an increase in cash sales year over year—no surprise there, as people are coming in with cash (or simply not making the contract contingent upon financing) in order to win in the multiple-offer scenarios so characteristic of the Seller’s world we’re living in. Average and Median sales prices are up as well.
Now, let’s chat about recent reports—what’s happening now, and what’s forecasted down the line?
The Fed has announced it’ll be raising interest rates in a few months—there are some forecasting that this will slow Buyers who plan to finance—it bears keeping in mind that, even with an increase, we’re still at historically low interest rates. If and when inventory loosens and we have more options for our Buyers, we personally don’t feel the increase in interest rates will slow the average Buyer. What the increase may do is give Buyers cause to evaluate, and reconsider what suits their needs.
Another development that speaks to our times is that prior to the pandemic, approximately 10% of employees worked remotely. Now, almost 50% work from home at least part time.
In the news earlier this month were the new condo lending rules affecting Buyers and Sellers alike—certainly put into motion as a response to last year’s tragedy in Surfside, FLorida. Fannie Mae regulations will now require buildings to evaluate deferred maintenance cases, reserves, and turn over their declarations, covenants, conditions, restrictions, and budgets to the lender to evaluate before they’ll even consider a loan. We’re forecasting a large increase in condo cash sales to avoid this onerous, yet important, process.
So what does this all mean for us in South Florida?
Our sunshine state with it’s balmy weather, beaches, and no income tax will continue to bring potential Buyers to our areas. Sellers and Buyers, now more than ever, we’ll need to work together and strategize our approach to this market. Things are moving fast! Just take a look at the median times to contract and sale:
Sellers—if you have somewhere you’re looking to go, or you’re open to renting (even at a higher rate), carpe diem! This is your opportunity to capitalize on your investment. Keep in mind, however, it’s still a price sensitive market. Your home needs to be priced aggressively )but appropriately) and buyers will come. Now, how can we really tackle the opportunities offered by this market? For our Sellers, we’ll work together to determine the right price to drive multiple offers. Hold showings until an open house, or a window for showings, staggering them every 15 minutes or so. Staging photos and marketing all matter—even more so today because many Buyers and buying site unseen! The 360 Matterport photos are even more valuable, so Buyers can “walk” through your home—even when they’re hundreds of miles away.
Buyers—you can win this market too! You just needs to be prepared and creative. We at the Amy and Noreen Team have had enormous success with and for our buyers. You’ll be pleased to hear it’s not only about the price. The structure of the offer, terms of the offer, and creativity of your offer can make all the difference. Our Team takes the time to understand the Seller’s priorities in and outside of price for a well rounded picture; then, we structure our approach in a way that satisfies the Seller’s goals in every aspect—giving you the best chance!
Understanding today’s market is key to your success as a Buyer or Seller. It’s for this reason that we analyze and report on the market conditions regularly.
Stay tuned for the next report—or if you prefer to speak with us now, you can always reach us at 561-571-2289 or Team@AmyandNoreen.com.
Until next time,
Amy and Noreen.
