January 2025 Market Report – Feburary 2025 Data – Palm Beach County: By Amy Stark Snook

in , , , ,

January 2025 Market Report – February 2025 Data

Palm Beach County

With every new year comes a surge of new listings, so it is no surprise to see an uptick in inventory. However, this influx has been accompanied by a slowdown in pending contracts, leading to an overall increase in available homes.

What may surprise you, though, is that January 2025 closed with an increase in both average and median home prices.   How is this possible? The key distinction lies in price reductions, not necessarily reductions in actual sales prices. Many sellers are pricing their homes based on active listings rather than closed sales, which can create a misleading perception of declining values. The reality? Final sale prices remain steady.

What is truly shaping today’s market is the sheer volume of listings. With more choices, buyers have the upper hand; they can be more selective, negotiate harder, and hold firm on their terms. As a result, getting a contract to the closing table is far more complex than it was in recent years.

Now more than ever, both sellers and real estate agents must focus on net proceeds rather than just the top-line sales price. There are multiple ways to maximize a seller’s bottom line beyond simply listing high—strategy matters.

Inventory levels under $999,999 are the highest we have seen in years, though conditions vary by price point. In Palm Beach County’s lower-end market, we are hovering at the top of a balanced market, slightly tipping toward a buyer’s advantage. However, in the mid-market just below $999,999, conditions clearly favor buyers.

At the luxury level—homes over $1 million—inventory currently sits at 11 months, solidly placing it in buyer’s market territory. That said, inventory levels are on par with or slightly lower than what we saw in the last quarter of 2024. Meanwhile, cash sales have increased, which comes as no surprise given that interest rates have remained relatively steady.

Despite shifting conditions, buyers are still actively entering the Palm Beach County market—whether relocating, investing, or purchasing a second home.

Homes that are properly priced will sell—it just takes more time, greater expense (on the agent’s part), and significantly more effort to attract the right buyers.   Such tools as an open house, and do not underestimate the power of an open house. Buyers are actively shopping, and their experience at an open house can be the deciding factor in making your home stand out from the competition.

When an offer is presented, strategic contract structuring and skilled negotiation can make all the difference. Creativity and finesse are key to achieving the goal.

In today’s market, who you partner with matters. Selling a home is not just about listing – it’s about strategic marketing, understanding pricing nuances, and navigating negotiations with a focus on net proceeds, not just the list price.

With more inventory and longer market times, the right agent is not just a short-term guide; they are a true partner in the process. A skilled realtor will not only position your home effectively but also help you navigate the complexities of today’s buyer-driven market to ensure a successful closing.

Amy Stark Snook

Palm Beach County Real Estate Market Report – December 2024 – By Amy Stark Snook

in , ,

 

December 2024 Market Report

Palm Beach County

Presidential elections, mortgage rates, and the holiday season are just a few of the factors that have impacted—or are perceived to have impacted—our real estate market over the past few months. We eagerly await the final numbers over the next sixty days to fully assess the condition of the Palm Beach County real estate market.

For now, we can confidently report that buyers currently have significantly more options across all price points. The days of a strong seller’s market appear to be behind us. In fact, up to the $600,000 price point, we are in a balanced market, where both buyers and sellers hold equal footing. Between $600,000 and $999,999, we are seeing 8.3 months of inventory, which slightly favors buyers due to the abundance of choices available to them.

However, what truly stands out is the luxury market, which has over 15 months of inventory—more than double the range of a balanced market. This creates a significant advantage for buyers in this segment.

That said, sellers should not panic. As mentioned earlier, several factors contributed to the market slowdown, including the cautious sentiment tied to broader economic conditions and seasonal trends. Additionally, sellers are now more optimistic about finding their next home, leading to a notable increase in new listings over the past 60 days. These factors combined explain the rise in inventory across Palm Beach County.

As Realtors, it is even more important that we understand the comparables and changes to the status of the comparables, including new-to-market listings, are crucial to monitor. Sellers, it is very important that your home’s curb appeal remains strong and that your property is show-ready for last-minute showing requests. Every showing must go off without a hitch, as buyers have many other options to consider.

Homes will continue to sell, but it will take longer, require more marketing investment, and demand greater creativity and marketing savvy from agents to ensure sellers’ homes stand out. Expect to see more creativity in contract structures, including requests for simultaneous closings and/or longer closing cycles.

While the market has shifted to offer buyers more opportunities and options, sellers who take proactive steps to prepare their homes, price competitively, and partner with experienced real estate professionals will still find success. The coming months will likely bring renewed activity as the holidays pass and confidence returns. If you’re ready to make a move, now is the perfect time to position yourself for the opportunities ahead.

 

Palm Beach County Real Estate Market Report – October 2024 – By Amy Stark Snook

in , ,

 

October 2024 Market Report – September 2024 Data

I held off on writing the October market report until after the election. Why? Many potential buyers and sellers adopt a “wait-and-see” approach during election periods, creating what we call the “Great Pause”—typically a 30-day lull leading up to election day. This pause often brings a temporary dip in activity, but here’s an interesting fact: historically, election cycles have shown no long-term impact on real estate values. Over the last ten election cycles, we’ve seen no dramatic market drops or spikes, just this brief pause in momentum.

So, how did October’s report—reflecting September’s numbers—shape up? In my view, the results show that this year was no exception to the trend.

Fortunately, Palm Beach County was spared from hurricanes this season. However, the uncertainty surrounding potential storms often impacts the real estate market, as buyers and sellers delay decisions while monitoring weather developments. Additionally, the holiday period around Labor Day brings non-productive days that can also influence activity. While these factors played a role in shaping recent numbers, they don’t entirely capture the story behind this month’s market results.

Closed sales in Palm Beach County saw a significant drop, down nearly 15%, with cash sales slipping by 20%. Meanwhile, inventory has risen across all price points, creating a more competitive landscape. In the luxury market—properties over one million dollars—we now have over ten months of inventory, signaling a strong buyer’s market.

What does this mean for today’s sellers? Buyers in Palm Beach County are still moving decisively on well-priced homes, especially those that are either fully renovated and ready for move-in or, conversely, properties offering a full renovation opportunity. Homes at these two extremes continue to capture interest, underscoring the importance of strategic pricing in this market.

For all sellers, especially those not in the categories above, there are plenty of choices available. The goal? Get potential buyers through the door. For the online audience, remember that professional photography is essential. Each photo should be carefully taken and ordered to capture attention from the very first glance, highlighting the home’s best features to maximize buyer interest.

Before coming in to see your home, many potential buyers will drive by, so ensure your home shines from the street. Keep landscaping tidy, maintain cleanliness, and consider adding a pop of color for extra appeal. If allowed, a yard sign can also make a difference!

As Realtors, we’ve increased our marketing and advertising budgets for every listing, aiming to maximize visibility and bring potential buyers to your door. Our goal is to get your home noticed and, once buyers are in, to personally highlight the unique qualities of your home, neighborhood, and any features that set it apart.

Pricing, however, remains crucial. The data speaks for itself—accurate pricing is essential in today’s competitive market. We recommend dedicating time with your realtor to thoroughly review comparable properties, analyze current market trends, and understand the factors that could impact your home’s position in the market. A seasoned agent can make all the difference.

Despite increased competition, more listings, and a dip in closed sales, here’s something that may surprise many: home prices have not declined. In fact, both the average and median sales prices have seen a slight uptick. What does this mean? Many overpriced homes are simply sitting on the market.

Sellers, this is where partnering with the right agent makes all the difference. Work with someone who understands the current environment, has the resources and expertise to effectively market your home, and is committed to getting you the best possible price. Our role isn’t just to list your property; it’s to sell it at its highest value!

Buyers, this is an exceptional time to explore options. With so much on the market, a skilled agent and negotiator can help you find the right home at the right price.

In today’s shifting market, choosing the right Realtor is more important than ever. With our experience and in-depth understanding of Palm Beach County’s unique market trends, we are here to guide you through every step—whether you’re looking to sell for the best price or find the perfect home at the right value. The Amy and Noreen Team is committed to putting in the time, resources, and strategy that it takes to stand out and succeed. Let’s work together to make the most of your real estate journey and achieve the results you deserve.

Amy Stark Snook

Palm Beach County Real Estate Market Report – August 2024

in , ,

 

Palm Beach County Market Report – August 2024

The past month has brought significant changes to the real estate industry nationwide. With the implementation of the new “settlement agreement” regulations, buyers are now required to sign a Buyer’s Broker Agreement before viewing any properties. Additionally, agents can no longer advertise the compensation offered to a buyer’s broker in the MLS. While these changes haven’t been as disruptive as initially anticipated, I believe they are just the beginning of a broader transformation in how we conduct our business. 

Personally, I have strong opinions about the settlement’s impact on both sellers and buyers, and I believe it has introduced challenges for everyone involved. However, one positive outcome is the heightened emphasis on a Realtor’s knowledge, professionalism, and expertise. Over the past decade, we’ve seen a surge in individuals obtaining real estate licenses, yet only a smaller, dedicated group has managed to turn it into a full-time career. 

Given these developments, it’s no surprise that local agents have mixed opinions about the current market’s strength. Some feel it’s a feast or famine situation. Those who anticipated these changes stayed consistent with their marketing efforts, budgeted wisely to invest in their listings, and continually educated themselves and have positioned themselves well for both the present and future. 

In our local Palm Beach market, price sensitivity is at an all-time high, regardless of the price point. Many sellers still believe in listing high with the expectation that someone will make an offer, leading to negotiations. However, with inventory rising across all categories, there is increased competition, and buyers simply won’t engage if they perceive a property to be overpriced. 

Inventory levels have risen in nearly every price bracket, with the luxury market now seeing almost two additional months of inventory, tipping it back to a buyer’s market. Strategic pricing is crucial to attracting buyers. Equally important is ensuring your home shows well, your agent effectively highlights its attributes and everyone involved is performing at their best during showings and open houses. 

Whether you are a buyer or a seller your real estate partner matters more than ever. For those of us who understood what was coming we are ready! 

Amy Snook

April 2024 Market Report – By Amy Snook

in

April 2024 Market Report – March 2024 Data

Tune in to the news, and you’ll likely catch discussions about the impact of high-interest rates on the real estate scene. However, here in Palm Beach, Florida, nearly 50% of our property transactions are cash-based, painting a different picture from what’s typically portrayed on your evening news. Sellers, take note: while half of our market involves financing, leading to appraisal considerations, pricing remains a crucial factor.

Many inquire or rather assert, that prices are on the decline in Palm Beach County. Contrary to popular belief, our prices have actually risen compared to the same period last year. Interestingly, both median and average prices have increased. It’s worth noting that the average surpasses the median due to the prevalence of higher-end homes in our county.

For those who’ve been following our market reports over recent months, you might recall my mention of a significant rise in inventory from last year, bringing us closer to healthier pre-pandemic levels. However, March 2024 numbers show a decrease in total inventory from the previous month. Why? Although closed sales are up, the rate of new listings entering the market has slowed compared to the prior month of 2024.

We’ve slipped below the $600,000 price point, transitioning back into a seller’s market. Sellers should bear in mind that we still have more inventory than this time last year, meaning competition remains stiff. Hence, pricing, staging, and every detail must be meticulously addressed.

In the $600,000 to $999,000 range, we’re once again in a balanced market, with neither sellers nor buyers holding a significant advantage. Precision in pricing and contract drafting is paramount here, making the choice of your real estate partner more crucial than ever.

In the luxury market, there’s positive news for sellers: we’ve decreased from an average of 12 months of inventory, indicative of a strong buyer’s market earlier in the year, to 8.1 months, slightly favoring buyers. However, many overpriced listings still linger, prompting a reevaluation of comparables and pricing strategies. It might even be time to reassess your listing’s marketing approach, as a scarcity of homes amidst high demand could draw more attention to your property.

We’d be delighted to sit down with you and delve deeper into the current market conditions.

Total months of inventory have decreased across all categories, despite a slowdown in listings, with list prices holding steady.

 

Amy Stark Snook

November 2023 Market Report – By Amy Snook

in ,

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