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.