April 2022 Market Report for Palm Beach County – Presented by Amy Snook

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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.

Market Report – March Report – February Results

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The latest data for Palm Beach County is out – results from February 2022 tell good news for our market.

Everyone, in almost every county and state, knows that inventory is low and while great for Sellers – not so great for Sellers who need to relocate and buy or just general buyers coming into a market.

When a market is balanced, everyone has more options, has room to negotiate and we see fewer bidding wars.    While we are far from a balanced market, we are seeing some important changes.

Every month, without fail, our team analyzes the market reports specific to Palm Beach County and we delve into the numbers by price point.    The price point differential is very important, especially in Palm Beach County, where we have a large percentage of higher priced homes.   This is where we are starting to see a divide – homes under $600,000 are trending one direction while homes above $600K, above $1,000,000 in particular are trending in another.

For example – the overall inventory for Palm Beach County – all price points is 2.0 months – a strong, very strong, sellers’ market.

In actuality, the months of inventory up to $600,000 is in fact 2 months; however, $600,000 to $1,000,000 increased from 2 months up to 3 months of inventory and the interesting story is homes $1,000,000 + increased d to 5 months of inventory – right on the cusp of a balanced market. We have more inventory over $1,00,000 than we have had in quite a long time.

In addition to the monthly statistics, we also receive notifications daily of all adjustments in our Multiple Listing Service and we are seeing more price reductions every day.  Now personally, we do not think that this is a sign of the market slowing down from a supply/demand perspective. Rather, we believe that buyers are starting to say that there is a limit to how much they will pay for a home. Interestingly this is not across the board – waterfront homes, proximity to hot spots such as Delray’s Atlantic Avenue, are not only holding value but values continue to climb. Working with an agent who understands the market, understands your neighborhood and “who” the buyers are for your home is even more essential in this wild, wild west market we are all living in today.

The other news that so many of our clients are asking us about is in regard to the fact that the Federal Reserve announced, as you know, that they will raise interest rates a few times this year which means we can most likely expect increases in mortgage rates as well. While we do understand that it may impact how “much” someone can buy, the fact is people can still buy. Rates are still low on the historical scale. We still have a healthy percentage of cash buyers in our Palm Beach market which can make it difficult for a buyer obtaining a mortgage, but that percentage went down across the board.

What advice do we give in this market to our Sellers – price strategically, price aggressively BUT price wisely – what you don’t want, as we have shared before, is to sit on market, in this market in particular, or have to reduce – the strategy in this market is price right and they will come!  Many of them bringing a multiple situation.

For our buyers – you can find a home, you can buy – you just need the right partner on your side.  Relationships with other Realtors make a difference in a competitive market such as this, expertise of the contract and how to structure an offer are a competitive advantage (I would argue that is the case in any market but more so today) and a strategic agent who can work with you to put a plan in place to get you in the right home is the key.

 

A December Market Report And January News!

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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.

Amy Stark Snook and Noreen Payne photo

MARKET REPORT: April 2021

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With the highest medium and average sales prices that we have seen in over a year and  inventory weighing in at record lows, April 2021 rang in an unprecedented time in real estate. A surefire indicator of market conditions, 6-9 months of inventory is considered a balanced market. Under 6 makes for a Seller’s market, and over 6, a Buyer’s market. The average inventory in Florida today across all price points is 1.8. That’s right, a mere 1.8! Never fear, however, hope isn’t lost for the motivated buyer in Florida.

Whether you’re a buyer or seller, this market calls for strategy. To approach real estate with a recipe for success, you must account for the ingredients at hand.

Here’s the bread and butter of it: cash sales are up significantly in Palm Beach County, according to the April 2021 Florida Realtors report. It’s important to remember “cash sales” doesn’t always mean green: but instead, that the transaction was not contingent upon financing.

 So, for our seller’s out there: you’ve got high probabilities of a cash offer coming your way. Now, does this mean you shouldn’t accept a finance offer? Not in the least! It means that Sellers are empowered to “demand” certain elements should you accept a mortgage. Such as a quicker loan commitment— meaning the contingency for finance ends faster (including appraisal and loan conditions). You can also weigh your options on whether to allow an appraisal contingency— for the right buyer, omitting this step may suit just fine, and the finance offer can move forward.

As for buyers? It’ll be key to keep in mind that you’re competing against cash offers— so offers need to be written aggressively, and with the least amount of contingencies. That said, it’s important to ensure you’re protected as well; and in that, a good agent will make all the difference.

Now factors aren’t the same across all price points. April’s market sweet spot is the $400-599k price point. In this turf, homes are selling in a stunning 8 days. That, compared to the 1,000,000 plus market, which is an average of 27 days to contract. So if you’re selling a home at $500,000, your price is right, the place is properly staged, and sports curb appeal? Well, you’d better start packing!

Buyers—I’m sure you’ve read your fair share of stories on scarcity, that homes just can’t be found. We’re here to tell you that they absolutely can! Simply put, you’ll need three tricks to compete in this market: an aggressive offer, the preparation to write it quickly, and a partnership with the right agent who has your back and your interests in mind.

Sellers— are you scared to sell because you haven’t yet pinned down where you’ll go next? Not to worry, we have a plan for that. Let’s partner up to sell your home and gain you the most we can, while holding space for a strategy that allows you time to find the right home for your needs. It’s a Seller’s market out there, and you’re in the driver’s seat for both your sale AND your purchase. Sit down with Noreen and I of the All About Florida Homes team of Lang Realty, and we’ll put the priorities of you and your family front and center to build you a strategy that feels the perfect fit.

 

February’s Market Report

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The other day, two new listings went live.  In a normal market, we’d chalk this up to a delightful day. Instead, yesterday quickly became a deluge of frantic calls from buyer’s agents and consumers, all desperate for an opportunity to view and offer on these listings. Within hours of going on the market, we saw over 100 showing requests and multiple offers on both properties. This has taken shape as the new normal for us in South Florida. Inventory has been so scarce that when a new listing, especially a single family home, comes on and is priced right, it goes in the blink of an eye.

As more people manage to get their COVID-19 vaccinations, we fully expect an increase in the frequency of new listings, which spells good news for prospective home buyers in search of a new place.

That said, we’re seeing an uptick in the numbers of buyers out there, with the influx of people looking for second homes, or to relocate to South Florida away from the crowded cities and cold weather. With these market trends in mind, it’s essential that buyers are fully prepared to make an offer, and that their Realtors are strategic and well equipped to work in a multiple offer scenario. In this landscape, helping a buyer stand out is one of our most important responsibilities. Communication is key, and price isn’t the only answer to coming out on top in a multiple offer situation.

The January market report found us with some very interesting, insightful statistics.

If you’re a faithful reader of our market reports, you might remember that last January the market was busy— we had months of inventory; but comparing January 2020 to January 2021 for Palm Beach County tells quite the story

Inventory is 3 months up to $600,000— half of where it was just one year ago. The reason for this is the frenzy that occurs when a new listing goes live. The $1,000,000 price point, a highly sought after market in South Florida, has gone from 19 months of inventory (a ridiculously strong Buyers market) to a balanced market of 9 months; but these, too, are coming and going fast!  This reduction of inventory we’re seeing is a result of sellers going off-market due to the pandemic, and out of state buyers venturing in, in addition to our traditional local buyers.

Even with the reduced inventory, our dollar volume is up from $667 million to $979 million. Both the average and the median sales price in Palm Beach county are up as well, with the average weighing in at nearly $850K— a reflection of higher priced homes going under contract. This hardly comes as a surprise, what with the reduction in inventory from 19 months to 9 months in just a single year.

With low interest rates, you might expect to find cash sales trending down; but they too are up from this time last year. Why, you might ask? Simple— in multiple offer scenarios, cash is king. These offers are typically desirable over their competition. I would suspect that, with this in mind, many buyers are often paying cash and then turning around after closing to do a cash-out refinance.

It’s an interesting time in the world to say the least, and a particularly interesting time for real estate. In Palm Beach County, we’re fortunate to be at the heart of such a sought after area. So sellers, if you’re considering selling? I can say with great confidence that now’s the time!

September Saw a Hot Market for Buyers and Sellers!

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So much has changed in our world since last year— so much has changed within the Palm Beach County Real Estate Market, too. With our low inventory in PBC, the low interest rate for financing, and less and less people willing to wait on finding their dream home, the market landscape is almost antithetical to last year’s.

The time to contract and time to close is down by almost 50% and 25% respectively, showing just how decisive buyers need to be when home shopping— as options are quickly flying off the shelves! Our median sales price is up to $400,000 and average sales price is up to $656,309, as higher priced homes drive up the numbers. With such low interest rates, you might expect that most would would finance to take advantage of these historically affordable rates, but with home shopping being so competitive and cash-purchase providing a clear advantage in many cases, we’re now seeing a much higher percentage of cash closings— an almost 35% increase over the same time last year.

 

The market from $300,000 up to $999,999 is a sellers market.. So, sellers— be strategic on your pricing! Look at closed sales as a true benchmark, adjust accounting for low inventory, and place strategically, keeping your competition in mind. Buyers— this is not a market moment for “ifs” or casual looking; this is a moment for getting your ducks in a row and, upon finding the perfect home, getting that offer written and out there ASAP!

A market over $1,000,000 is a balanced market— so strategic pricing, curb appeal, and staging will be your greatest allies. There’s competition in this scenario, but not as much as there once was due to lowering inventories in Palm Beach County.

As realtors, we have an essential job to do for both our buyers and sellers in this fast moving market. In addition to readying a home for sale, we must work with our seller to determine which offer is the right contract for them. It’s not always simply a matter of price— the terms do matter. The strength of the buyer matters, and the relationship and teamwork with the buyer’s agent matter.

For our buyers, we aim to work with you to ensure you’re ready to buy when the opportunity strikes. This type of preparation tends to involve proof of funds or lender pre-approval— and not just the piece of paper that states you’re eligible for a loan, but the phase of the process that finds the lender comfortable talking to the listing agent and providing confidence in the qualifications of You, the buyer.

Representing a buyer in a multiple offer situation is always a challenge, but never an insurmountable one. It’s not simply the best or highest price that wins— it can be a matter of heart and care, too. We, as the agent team, need to demonstrate to the listing agent that we’re versed in what we’re doing and are prepared to get all of our clients to the closing table. One of the ways we accomplish this and get our buyers all the way, is by encouraging them to write a personal letter to the seller. Something to humanize the process— so that, when it comes down to decisions by the seller, it isn’t just another offer in the stack, it’s a piece of you and your story.

This month, we’ve seen a fast moving market, much competition, no shortages of offers, and homes going under contract after mere hours on the market. While this is excellent news for the economy, it can be a challenge for the individual buying or selling. So, choosing the right partner for the job is essential. We, Noreen Payne and Amy Snook of the All About Florida Homes Team of Lang Realty, are here to tackle the next step with you when you’re ready.

 

July’s Market Report!

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It is a fact that there is a serious shortage of single family homes listed in Palm Beach County. In my many years in this industry I don’t recall ever seeing this strong of a seller’s market . If you will recall in months past, I shared with you that one way we evaluate a market is based upon inventory (or as some people call it consumption), further than 6-9 months of Inventory is considered a balanced market, under 6 is a Sellers Market and Over 9 is a Buyers market. When analyzing various market segments, we were amazed to see just how low the number of months of inventory actually is in Palm Beach County

Sales Price
$300 – $400,000    2 Months of Inventory   Seller’s Market
$400 – $599,000   3 Months of Inventory   Seller’s Market
$600 – $999,999   5 Months of Inventory   Seller’s Market
$1,000,000 +         7 Months of Inventory     Balanced Market

As we’ve recently shared, we started 2020 with over 19 months of inventory in the $1,000,000+ market.

To clarify, the above is specific for Palm Beach County and we should also state that we do see pockets of communities that tell a different story as some communities have stricter Covid showing requirements and certain buyer populations are not seeing homes in person due to Covid either.

What is absolutely amazing that if August results are as strong as July (which we fully expect them to be), then it is probable that we will be trending ahead of last years numbers. Low interest rates coupled with low inventory are making for the perfect storm to bring in a buyers frenzy on many homes.

July provided the highest number of new listings since before our shut down but as you can see above, we still need more inventory in our market.

Buyers are able to buy more home due to the interest rate – unfortunately (or fortunately for the sellers) the buyers you are competing for are also in the same position and currently we have more buyers than sellers.

So Seller’s; is this a good time to sell? Yes! This is the perfect time to get on market and sell your home – in fact, Palm Beach County could really use your home on the market as buyers need more options.

 

April 2020 Market Report!

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In our last market report, we shared that the effects of Covid 19 would be evident in the April results and as forecasted the drop was drastic. Closed statistics in Palm Beach County are down 30% year over year, new pending sales dropped 54.6% and new listings are down almost 40%.

However, Believe it or not, there IS good news.

As fast as we dropped, we are already in midst of a recovery – yes, that quickly. It is being referred to as a V-shaped Economic rebound – a quick drop and a quick rebound.

Over the past six weeks the market has been showing tremendous gains – Florida Realtors even reports that the activity and results are now back to early March levels which was a “hot” market. Listings (if priced right) are coming back on and selling as quickly as they come on due to low inventory. If you are even considering selling your home, now IS the time. Stage, Price it Right, Market it properly and get ready for activity – of course, as we have shared over the past few months – ensure that your photos allow clients to truly understand the home’s layout or include a 360 walk through.

So the market has quickly rebounded but does this mean things are all back to normal?

Frankly, it is simply too soon to know. The loss of jobs, the impact of borrowers ability to obtain loans as a result, tightening credit requirements, and the impact of forbearance agreements on future loans all may and most likely will impact the market – The recovery of the economy and the job market is critical to our country and to the real estate market.

A lot can happen over the next 30 days and as workers go back to work and communities open up we are optimistic and excited to see the May results in a few weeks!

– Amy & Noreen

Market Report Through 3/31/2020

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    While we analyze the market monthly and provide a report, this one is different and it is so essential that we all understand what is happening to the real estate market, as a result of Covid-19, so that we,together, can make educated decisions.

   There is little doubt that Covid-19 and the shut down have impacted our Palm Beach County Real Estate but in what way and what to expect I believe will surprise most consumers.    

    The first quarter results are in and as many of you know, we were trending for a great year with year over year results showing improvements from last year – and March results showed the same improvement of Closed Sales, Median and Average Sales Prices up year over year. That may surprise many people but know that closed sales in March are a result of contracts from earlier in the year – Pre-Shutdown.   March closed sales while up from February are at a much lower rate of growth from earlier in the year – so while they were closing, there were a percentage that simply did not close due to the uncertainty surrounding Covid-19, the financial impact, etc. The months of inventory over $1,000,000 is down to 13 months and if you will recall was almost 19 months just a few months ago.  Did homes sell?  Certainly but also we saw homes come off the market.     $600,000 to $999,999 is a balanced market but 300,000 to $599,000 is now a sellers’ market.    We do expect, of course, the April numbers to really reflect the effects of all that has been happening in our world.  These numbers will be out in just two weeks.

    This brings me to an important point of this 1st Quarter analysis and what to expect, in my humble opinion, moving forward.  We have clients and prospects calling and asking is now the time to buy?  Is now the time to sell?  What drives the real estate market – two major factors are interest rates and inventory.    For now the federal reserve is doing a good job keeping the interest rates low – while they are bouncing a bit – they are still very attractive for a new loan.  Inventory overall is low – regardless of the price point and what happens when inventory is low?  You will find the listing and sales prices are higher –

     We are having to get creative in how we show property, we are capitalizing on all technological opportunities for listings from the photography to the 360 virtual tours – “showing” the home without having to physically show the home to every potential interested party.  We are all operating efficiently and effectively and as a result homes are selling.  In fact to homes that we listed in the past 30 days were under contract within days of being listed and at or close to list price!   

    So while we are living in these uncertain, scary times – it is essential that our economy recover – for all of our sakes and to be able to share with you all that homes are being listed, that home are selling and that our market is start to once again move is wonderful news that I am honored to share! 

Amy