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

 

Noreen Payne Featured in South Florida’s Sun Sentinel – ‘Will The Cooling Market Offer Any Advantages?’

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South Florida’s Sun Sentinel, January 9, 2023

One Of The Many Things We Do For Our Listings!

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Don’t just imagine what your dream backyard could look like…see the potential! Here is one of the many things we do for our listings. Contact Amy and Noreen for more information at 561-571-2289.

One Of The Many Things We Do For Our Listings!

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Don’t just imagine what your dream backyard could look like…see the potential! Here is one of the many things we do for our listings. Contact Amy and Noreen for more information at 561-571-2289.

Fun Events In Delray Beach & Surrounding Areas – January 2023 – Presented by Noreen Payne

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Happy New Year!! Want to know what top events are happening in Delray Beach and surrounding areas in the month of January 2023? Listen to Noreen Payne’s video overview. Join us every month for highlights of top events in the area!

Fun Events In Delray Beach – December 2022 – Presented by Noreen Payne

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Want to know what top events are happening in Delray Beach in the month of December 2022? Listen to Noreen Payne’s video overview. Join us every month for highlights of top events in the area!

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

 

 

Protecting Your Downpayment from Hackers

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Hackers Are After Your Down Payment. How NOT to Get Scammed

6 things to start doing now to protect your dream-home funds

Illustration of someone pickpocketing a homeowner

You finally found it: the two-story bungalow in the trendy part of town you’ve been eyeing for years – the one with the best coffee shop (hello, foamy latte) and favorite farmer’s market. You made your best offer (they accepted!) and now you’re about to close on your dream home.

Then just before closing, an email from your real estate agent pops up, claiming a last-minute change to the money-wiring instructions. You wire the funds. But the money never makes it to the bank. Turns out that email wasn’t from your agent – but a hacker. You got spoofed.

Unfortunately these days, enterprising hackers are busy tricking homeowners into sending them their hard-won down payment.

How? They access email accounts by snagging passwords through public Wi-Fi and via email solicitations that appear to be from senders you know.

The bad guys comb through the email accounts, searching for any information about home sales and upcoming closings. Once they’ve found what they need, they send consumers an email posing as their real estate pro, attorney, or escrow officer. The email includes wiring instructions linked to a fraudulent account.

Here’s how to prevent a hacker from running away with your home before you even have a chance to buy it:

#1 Never Send Personal Info Over Email

Personal info includes a bank account number and a Social Security number. Your agent shouldn’t be sending this stuff by email either.

#2 Pick Up the Phone

If you ever receive wiring instructions by email, call your agent or lender to confirm one of them sent it. Call the phone number you have on record for your agent, not the one listed in the suspect email.

#3 Discuss the Wiring Process With Your Agent

Early on in your relationship with your agent, ask about what you should expect, when, and from whom.

#4 Change Your Passwords Often

Create a reminder on your phone or computer to update passwords monthly. Make them strong, something even your friends and family members wouldn’t be able to guess right away – you know, something other than password1 or your dog’s name.

#5 Set Up Two-Factor Verification

Two-factor verification, which requires both a password and a code that’s sent to your phone or other device in order to log in, is more challenging to hackers than a single layer login. Make sure you set it up on your email and bank accounts.

#6 Read Up

Get even more email security best practices.

Got spoofed? If you ever receive a suspicious email, report it to the FTC by forwarding it to spam@uce.gov.

Palm Beach County Happenings in November 2022 – Presented by Noreen Payne

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Want to know what top events are happening in Palm Beach County in the month of November 2022? Listen to Noreen Payne’s video overview. Join us every month for highlights of top events in the area!