Incredible! Impact 100 Palm Beach County awarded seven $100k grants to deserving local nonprofits at their Grants Award Celebration!
Noreen loves working with this organization alongside amazing people like Grant co-chair Ingrid Kennemer and is looking forward to working together on the next Grant cycle.
Congratulations to the 2021-2022 $100,000 Grant Recipients!
Want to learn more? Reach out today (561)-571-2289
Want to know what top events are happening in Delray Beach, Florida during the month of April, 2022? Listen to Noreen Payne’s video overview. Join us every month for highlights of Delray’s top events.
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.
I can’t express how thankful I am for the help and guidance you provided Bethany with the purchase of her first home. She is over the moon excited and I couldn’t be happier for her. It all happened so quickly and I am still shocked that she was so successful in this crazy sellers market!
Thank you for all you did to make this possible. I felt comfortable and confident that she was working with the best from day one. Words can’t express how grateful I was knowing she was being taken care of during this whole process and treated as one of your own. Knowing what happens in this business behind the scenes, I very pleased with the comfort and service you provided… Thank you for all you do.
— Amy, a fellow Real Estate Agent
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.
✔️ Business continues to be strong, and it all starts with world class service — we’re so excited to have been featured in the Sun Sentinel newspaper, with this lovely article that ran in the Sunday, May 16th issue!
