Palm Beach County’s August 2023 Market Report – July 2023 Data – By Amy Snook

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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

Palm Beach County’s July 2023 Market Report – June 2023 Data – By Amy Snook

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July 2023 Market Report – June 2023 Data

Results are out from the latest Florida Realtors analysis bringing us some good news for the data of the month of June 2023.

First, it appears that the impact of the interest rate hikes has finally started to settle, and people are starting to get used to the idea that rates are higher for the foreseeable future. Now that we have accepted this new world, people are starting to move forward with their real estate purchases but are adjusting how much they can now buy, potentially putting down more money to keep the loan-to value ratio low and other strategies as we discussed in the past.  “Date the rate, Marry the house” as what goes up will eventually come back down and refinancing down the road is most likely a part of many homeowners’ strategy.

Second, the gap between this year’s closed sales and last year’s closed sales is starting to shrink.  If you recall in my market report from the early part of 2023 it showed a very large differential of closed sales from same time last year.   In fact, if interest rates start to stabilize after this latest increase, it is possible we may surpass 2022 closed sale results for the second half of the year in South Florida.

Third, pre-pandemic times brought a slower real estate market in the summer months, and we are once again experiencing this seasonality.  Summer has been quiet around town but It is once again wonderful to see people taking summer vacations and traveling around the world.

With summer coming to an end, our activity has increased quite substantially in the past few weeks. Public schools reopen next week, and private schools are getting ready for opening just a few weeks away.   Life is coming back to South Florida, and I fully expect the waits to rise in all our local restaurants once again – but again, this is a great problem to have.

We are anticipating the influx of people back to our area will bring a change to the current inventory situation we have been experiencing.

Inventory in the market of $600,000 and below is low but stable as compared to the past few months.It is still a strong seller’s market with an average of 2.3 months of inventory.

Inventory in the market $600,000 to $999,000 is 3.25 months which still boosts a strong seller’s market; however, inventory has dipped from the past few months.

Our luxury market shows some interesting trends.  First, inventory is down in this category as well but still in a balanced market with neither the seller nor the buyer having an advantage.  Listings are taking longer to sell, and a large percentage of sales happened well below the listed price. Both the median and average sales prices have dropped year over year.

What does all this mean for you as a Buyer or a Seller?

First, Sellers, while inventory is down, one may think that this gives the sellers an advantage. I would say yes, it does, but only if you price your home right. The buyer’s sense of urgency and desperation is no longer what we experienced during the pandemic. If your home is priced too high, in this market, it does not typically result in a lower offer, the listing will simply sit. Once a reduction occurs to a price point that the market deems appropriate, then the showings and offers come. Ensure you put your best foot forward regarding staging, pricing and who you partner with to sell your home.  Marketing, advertising, and good old-fashioned sales 101 will make a difference.

Buyer’s, be patient. There is not a lot of inventory in most price points, so this is a great opportunity to learn about communities and determine where you want to be. This is a market in which we, as Realtors, end up spending a lot of time out in the communities with our clients educating them on the various areas so that when inventory does pick up and there are more choices, our buyers have already narrowed down to the areas they want to live.  This does not mean you cannot get into a home today, simply stating that when they are priced right, they are still going quickly and it most likely will take more time to get you into the right home at the right price.

Selling and buying simultaneously is a challenge in a lower inventory market.   Our suggestion to our Sellers in this situation is to consider selling your home, pocketing the profits and then being free to make an offer when the right one comes along.  Of course, there are other strategies in this scenario and ones that we evaluate on a case-by-case basis with our clients.

Our market is trending in the right direction in most categories, we simply need more inventory and expect to see an increase in this area over the next few months.

Whether you are selling or buying or both, we would love the opportunity to be your real estate partner.

Amy Snook

Amy and Noreen Team of Lang Realty

May 2023 Market Report – April 2023 Data For Palm Beach County – By Amy Snook

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May 2023 Market Report – April 2023 Data

I must admit that writing this months’ market report has proven to be one of the most difficult ones yet.   I have written, deleted, rewritten, and come to realize that most of my struggle is coming from the fact that this is, simply put, an “odd” market.  To be clear, it is not a bad market – as Noreen and I are busy every day – but it’s just different.

In doing my monthly research, it’s interesting to note, that there are several different perspectives on today’s market.  Every month preparing for this market report, it takes time to analyze the final numbers from Florida Realtors. Listening to economists and reading articles, I create spreadsheets and bring it all together with a summary for you to read.  This month, each article and report had a very different interpretation and forecast of what is and will be happening in real estate.  Some doom and gloom, others bright and cheery.

As an example, I read an article from a reporter in Boca Raton stating that the market was “a horror” (his take) yet another article was from a real estate organization which touted positive news for our local Palm Beach County market.  And, while in our Lang office the other day listening to agents talk about their businesses -one agent mentioned she had “no buyers” but another agent shared being stressed about managing all the buyers they have.

Personally, from a realtor perspective the analysis is very clear to me.  During the pandemic, many perspective agents entered the market and obtained their real estate license.  They experienced real estate during the height of the pandemic and had tremendous success. We are now faced with a more challenging market and one where we need to create our own leads, spend money on marketing to reach potential sellers and buyers – and from my perspective, this market is not for the faint of heart.  As an FYI we love markets like this when we get to use our unique set of skills.  Different skill sets, different results.

Now, from a real estate market the analysis is not as easy – writing this report, my thoughts come together to realize the conclusion is that results are very localized and more so than typical.  Overall, to a degree, our market is protected from what most of Florida and for that matter the Country, is experiencing.  The valuable lessons learned during the pandemic still hold true.  People want to live a certain lifestyle and Palm Beach County Florida – including Boca Raton, Delray Beach, Palm Beach, Atlantis and more – provides opportunities for this lifestyle whether it be a relocation or a second/vacation home -we have it all.  Results wise we are seeing a divergence of our local market from that of other counties and areas in Florida which is very different from much of the country overall.

To be clear, in every market today it is common to be dealing with the uncertainty of our economy, inflation, rising mortgage rates and upheaval in politics and global uncertainty.  In my opinion the impact of these issues appears to be less impactful in our area than in others.  Overall, cash sales were down; however, the percent of cash sales of total sales locally is significantly higher than other areas at almost 46% of sales being in cash.

Another example of the strength of our market is that most municipalities around the state had a decrease in both the median and the average sales price in the month of April.  In our county, we are up in both categories at $585,000 and $1,015,585 respectfully.

Under the one million price point in Palm Beach, fewer homes closed, fewer listings came on and in most price points under on million, inventory is up from the month prior.  It is still a sellers’ market at all price levels under one million.  Over one million we had fewer closings, less new listings on market but the total inventory did go down bringing the luxury market back towards a more balanced market.

In summary, what does this all mean?   Well, I’m uncertain whether closed sales being down in April is a one-time event or a trend – it is per all reports, taking longer to get transactions closed which could account for the reduction in April results.   We look forward to the June report (May results) to see if our hunch is correct.  In the interim, while we have lower inventory than pre-pandemic, we have higher inventory than the past few years.  So, Sellers – put your best foot forwarded in all aspects and ensure you have the right partners with the right skill set ready, willing, and able to tackle this market.   Buyers, more options, but that does

n’t mean you will not be competing with other buyers for a property.  Align yourself with the savvy agent (s) who are well versed in strategic initiatives.  Any of us on the Amy and Noreen Team would welcome the opportunity to speak with you and show you, firsthand, how to thrive in today’s market as odd as it may be.

Amy

March 2023 Market Report – February 2023 Data For Palm Beach County – By Amy Snook

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A client recently asked us to forecast our local real estate market over the next year. My initial thought was to look at the trends that impact our typical real estate market such as supply, demand and inventory. However, in today’s environment there are many other factors to consider such as: interest rates, inflation, the banking crisis, politics, global threats, stock market, etc.. We are currently in and believe will continue to be in for a bumpy ride, simply put, there are too many variables at this time to forecast one year out. Even when running comparables to determine a list price or for a buyer’s offer, we can’t go back even six (6) months to compare as too much has shifted in the market.

From a trends perspective, we are tracking more in line with the pre pandemic (2019) market where we could plan for seasonality and all of the familiar nuances of our Palm Beach county real estate market.

Trends aside, today we are still in a lower inventory market than we were pre pandemic, but of course are almost double where we were just one year ago. New listings in Palm Beach county have slowed, most likely for several reasons:

  1. Many people are locked in a better interest rate for their current home mortgage and if they have to finance their new home, it would be at a higher interest rate.
  2. We realize how great we have it here in Florida – so many residents are simply staying put.
  3. If you sell, where would you go if you are in the under $1,000,000 price point? – inventory is still low.

The good news from the February results just released is that the softening we experienced when the Fed started increasing rates is having less of an impact. Rates on a 30 year fixed loan came down slightly earlier this year and that fueled buyers’ activity once again resulting in an increase of closed sales in February. With more homes being closed but still with a lower number of new listings coming on, this change has shifted our months of inventory at almost all price points below one million.

This shift brings us back to a stronger seller’s market under $600K and a more balanced market up to the one million dollar price point.

Over one million in Palm Beach county continues to remain just under twelve (12) months of inventory making it a strong buyer’s market. However, with low inventory and high demand for the Florida luxury market, our prices have been more stable reducing slightly versus a steep decline.

This month I want to address the condo market in south Florida. By now you have probably read or heard about the upcoming changes to ensure structural integrity and adequate reserves for condos that meet certain criteria such as proximity to the coastline and number of stories in the building. The changes do not fully take effect until December 31st, 2024 however, the impact of the changes are already being felt. The condo market is absolutely going to be a case by case analysis by building – and we as Realtors need to understand what questions to ask so that we can better advise our clients on what to expect from a construction perspective in the building to potential special assessments. It is important that consumers align with Realtors who are versed in these changes and the financial impacts associated. Many current homeowners are faced with increasing dues and current and future special assessments. We are in for a very interesting condo market over the next few years.

Our current market is changing often so analyzing the results is even more critical and breaking out by price point and product (condo versus single family as an example) is essential to providing worthy guidance to our clients. At The Amy and Noreen Team we continue to keep up with the rapidly fluctuating market and are here to help in any way!

 

Amy

January 2023 Market Report – December 2022 Data for Palm Beach County – by Amy Snook

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January 2023 Market Report – December 2022 Data

It is frustrating as can be when you watch the news or read the newspaper and the media summarizes what is happening in our Palm Beach market – I believe it is over-simplified and all price points are lumped together presenting an inaccurate assessment.  How can sellers and buyers make an educated decision of when to sell, when to buy, how to price, etc. without fully understanding the total environment in our community?  It is for this reason that we take the time every month to analyze the numbers, the trends and the issues impacting our local market.

 

This month’s market report reports the results of our final month in 2022 – the December market report and we believe will be eye-opening to many sellers and non-seasoned agents. First, the media reports 3.2 months of inventory for Palm Beach County – while this is true at the $300,000 price point, it could not be further from the truth at the $1,000,000 price point, which is showing 10 months of inventory. This stark contrast between average and breaking it down at price points is what is causing many in the community to improperly price their listings. Three months of inventory is a strong sellers’ market – and we have learned over the past three years that a strong seller’s market can provide a setting of the Wild Wild West with multiple offers, waiving of contingencies and an all-out frenzy. On the contrary, 10 months of inventory, as evidenced in our higher-end market is a completely different environment and one that gives the buyer the leverage, which is the antithesis of our experience over the past three years. The $400K through $999K presents a balanced market, one in which neither sellers nor buyers have an advantage.

 

It is for this reason at our higher-end market that we are seeing homes sitting for much longer since buyers have more options now from which to choose.  We also have sellers and Realtors alike who have not yet acknowledged that our market has softened. It is difficult to properly price a listing today because there isn’t a history of comparables that tell a realistic story. You have to understand the market and where we are headed to price a listing and even then, you have to really listen to the market’s feedback and adjust. Realtors, we have to once again spend money to make money. For those of us who saw this coming and saved our money, we are in a good position to market our listings. Mostly everyone does professional photography, but should add to this video marketing, print advertising, social media paid ads, postcards and good old-fashioned smiling and dialing to others in the industry. Sellers, you need to be prepared that your home will take longer to get under contract with the median time to reach a contract doubling year over year.

 

As we closed out 2022, we acknowledged new listings are down but inventory is up more than 120% from the same time last year, which is great news for our economy. Median and average sales prices are NOT up, however. They are down significantly from the same time last year. We are blessed that our Palm Beach County is a destination location with second homes, vacation homes and even remote workers keeping our market protected from the huge swings many other areas of the country have seen. In fact, I just attended the Florida Realtors convention in Orlando and heard their economist, Dr. Brad O’Conner, speak about 2023 trends and he was optimistic about what the year will bring, barring any catastrophic unexpected events.  

 

The graphs showing 2022 results are much more comparable to those pre-covid. We once again have seasonality in Florida real estate – we are heading back to “normal.”

 

Our advice to sellers: You have to be fiercely competitive with the others home-sellers on the market. There are lots for buyers to choose from – to stand out from the crowd – not just in price but in curb appeal and how your home is marketed and shown. Price it strategically, but not unrealistically. If you are interviewing Realtors, ask how they plan to market your home. Of course, price is one facet and you and the agent together should determine the price based upon many factors. Price can change, but how hard a Realtor works to sell your home is critical. Remember, you need to stand out from the crowd and be a fierce competitor!

 

Amy

 

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

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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

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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

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

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Palm Beach County – Due to our area being a popular destination location for vacation, seasonal rentals, 2ndhomes and relocations, PBC reports a different real estate story than much of the country.  I was recently interviewed by a reporter with the Sun Sentinel and while answering her questions regarding our current real estate market, I thought, maybe, I was off base as to the strength of our market; however, when the article came out, it was reaffirming that all the agents interviewed shared the same sentiments.

In analyzing the market, we review countless numbers and timeframes and compare the statistics to the same time last year (year over year) as well as month over month trends. To clarify, year over year, the seasonality aspect of our area greatly impacts the real estate market in Palm Beach County.

As we assess the August results for Palm Beach County..

Year over Year –

No surprise to any of us that the median and average prices are higher than they were in August 2021 – but, even with the higher price points, the total volume of closed sales for August 2022 is lower than August 2021. The fact is, we’ve had fewer closed sales this year than this time last year and the percentage of cash on these sales is down as well. At first glance, you’d expect to see cash sales increasing due to the rapid rise in interest rates; however, with prices still significantly higher than last year, investors seem to be holding and waiting for the market to cool.  New pending sales and pending inventory are down from the same time last year – the net is that properties are not moving as fast as they were, in fact, inventory is up by 63% year over year.  More inventory is coming to market which is adding to the current active listings creating more options in the market at all price points.

Month over Month –

August 2022 versus the past 4 months in Palm Beach county tells a very important tale – our market is leveling off price wise but at a much slower pace than the reports out from the rest of the country.  Both median and average sales price are trending down when compared to the few months prior – we are now coming into season so it will be interesting to watch if this influx of people from out of our area impacts the pace in which our market is leveling.  One of the lagging indicators of our market is median percent of original list price – Are Sellers considering less than list price?  The answer is yes, they are – we have held strong in our area on this indicator but July and August results show that sellers are realizing that in order to sell their home they may have to come off their price for the first time in a while.   New listings onto market have slowed this month versus last month which was different than what we expected.   We have been busy bringing new listings onto market over the past several months and are surprised to see the numbers down in Palm Beach County – however, we realize that this is not across the board but rather an indication of the hot destination area in which our team works.

The results of the numbers show that the $300K to $999,999K price points remain a Seller’s market – however, a different seller’s market than over the past few years.     Homes are taking longer to go under contract, longer to close (which is no surprise with fewer cash sales), homes are selling for less than list price and inventory is up significantly at these price points.  Over $1,000,000M – we went from 5 months of inventory in July to 7 months of inventory in August – fewer new listings and fewer closed but more inventory?     Yes, exactly what we have been saying for months – Sellers (and Realtors for that matter) need to adjust price at this higher end market. It is the not the same market that it was just a year ago – there is much more supply than there was, more options for buyers to choose from and now sellers are willing to negotiate and take less than their list price.

We are simply back to basics when selling homes in Palm Beach County’s high-end market. All that goes into preparing to sell your home really, really matters – taking time to get all of the information needed to properly market and sell a home is key.  No more racing to market – do it right. Slow down, understand the attributes of the home, determine how to handle any potential deficiencies in a home – have a strategy or even fix it before going on market. While we have always shown our listings personally, we saw over the past few years more Supras (lockbox’s) than ever before. A home will not sell itself anymore for the highest and best price without an agent there to tell the story and properly sell and market the property.   For the Amy and Noreen Team – we sigh a big sigh of relief – this is where we shine.

The good news for Palm Beach County- demand is still high and supply relatively low.    Partner with the right Realtor (or in our case Real Estate Team), understand the market conditions and the reality of our current market.  Homes will sell when marketed and priced properly.

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

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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!

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

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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