To HOA Or Not To HOA
Is it better to choose a home with an HOA (homeowners association), or one without and HOA? Noreen reviews some pros and cons and offers some help with making this personal decision.
Meet Amy Snook & Noreen Payne
We are the Amy & Noreen Team of Lang Realty. We would love to be your resources of all things real estate. Before you intrust you with this important role, we would like you to know a little bit about us. Please enjoy this video!
April 2022 Market Report for Palm Beach County – Presented by Amy Snook
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.
May 2022 Events Delray & Surrounding Areas – Presented By Noreen Payne
Want to know what top events are happening in Delray Beach and surrounding areas during the month of May, 2022? Listen to Noreen Payne’s video overview. Join us every month for highlights of Delray’s top events.
Delray Affair 2022
What an incredible day at the Delray Affair! Back after 2 years for the 60th year!
The chambers biggest fundraiser was amazing. Great weather, good vibes, happy people. Congratulations to the chamber’s dream team and FMG for making it happen.
Impact 100 Palm Beach County
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
April 2022 Events Delray Beach – Presented by Noreen Payne
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.
A December Market Report And January News!
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.
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