Palm Beach County Real Estate Market Report – August 2024
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
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
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 – By Amy Snook
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
Palm Beach County’s September 2023 Market Report – August 2023 Data – By Amy Snook
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
Palm Beach County’s August 2023 Market Report – July 2023 Data – By Amy Snook
August 2023 Market Report – July 2023 Data
The top question we get from buyers and sellers these days is “when is market pricing going to drop?” We hear, “they say it’s coming,” every day and my response is the same every time because I have access to the powerhouse of data and, the experience of living in the market. In my opinion, the Palm Beach County market, barring any major issues such as a pandemic or other catastrophic issue, will not be falling off a cliff anytime soon.
The latest market numbers from July 2023 show a very telling and promising story. Per Dr. Brad O’Conner, Florida Realtors leading economist, our overall housing market has stopped deteriorating although, admittedly, has not started increasing yet. This matches what we are seeing in the market every day. When homes are priced right, they sell – and per July data they are selling at 96% of list price. Of course, homes not properly priced are still on the market which is why we are seeing inventory sitting longer.
Interesting factors to take into consideration are sales prices stayed almost flat (2.2%) from the same time last year, closed sales were down and we are now back to our traditional South Florida seasons, with a quieter summer. Anyone who stayed around this summer will tell you it was quiet with no waiting for a table at our favorite local restaurants.
The reality is that the real estate market, as a whole, is experiencing interest rates that are impacting our market. As shared last month, the concept of “Marry the house, date the rate” still holds true and people are starting to accept the fact that rates are not coming down any time soon. In fact, cash purchases are down as a percent of total sales which is surprising to many.
In the news this week, I heard a reporter say we are back to a seller’s market with 2.9 months of inventory in Palm Beach County. I know it’s bad but am going to say “shame on them” – they are not understanding nor properly reporting on our market conditions in PBC. 2.9, which is a seller’s market, applies only to homes under $600,000. $600K up to one million is boding a balanced market and wait for it…..over $1M is now over the threshold of a balanced market inching towards a buyer’s market.
Sellers and Buyers – it is important that both you and your realtor understand these current trends as it impacts pricing, staging and strategy on your listing as well as offer prices and contract terms for our buyers.
Knowledge is Power! Are you ready to apply this month’s data to help you accomplish your goals? The Amy and Noreen Team welcome the opportunity to meet with you to discuss your specific situation.
Amy
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