Analyzing a year-end market report always provides particularly useful information. Plus, it gets us excited as we move into the next year.
I cannot speak for other agents, but I can share that Noreen and I are excited for all that is in store for 2019 for real estate in Palm Beach County. We attended the Florida Realtors convention in Orlando and were able to hear first hand the legislative and community initiatives that we are Realtors are involved with. Many will have a direct and positive impact in South Florida.
Regardless of the trends and what we foresee, we are always committed to providing you with unbiased information. In these market reports, we present the facts, and tell you the truth about how we interpret them! We see it as imperative that you be properly equipped with information to make decisions about your real estate goals and plans. Now, onto the December 2018 and the year-end figures!
Inventories in 2018 were low as, we have discussed. But we are now seeing inventories rise and rise quickly – which is great news for Palm Beach county buyers and sellers.
While December figures were up from November by a small percentage, year over year December was down. This same year-over-year results can be seen across the nation. One of the reasons for this may, of course, be that inventories were down. But, additionally, interest rates have been going up – forcing some buyers to rethink their timing for purchasing.
So why are inventories rising with all of the above going on? Many are hypothesizing that the low interest loans are coming due for many existing homeowners. So, before they have to obtain a new mortgage (at a higher interest rate), many are getting out and finding their next home. The logic: If they have to pay a slightly higher rate, they may as well move on to the next home of their choice.
Not much has changed as to the balance of the markets at the various price points.
– The $300-$399K range is still a sellers’ market.
– The 400K – 599K range is still balanced.
– The $600K – $1 mill+ range remains a buyers’ market.
Interesting to note: The “over $1 million+” category in Palm Beach County now has over 25 months of inventory. Additionally, time on market to contract in this category is now over 8 months.
The takeaway for sellers: It’s critical that you price properly. There are too many high-end homes sitting, overpriced, on the market. If you want to sell, please allow a Realtor (wonderful if it is us!?) to show you the true comps – look at SOLD versus ACTIVE. Don’t let anyone tell you that you can’t sell your high-end home – You absolutely can with the correct strategy.
Contact us at (561) 571-2289 – or via email@example.com – if we can provide you with any additional market data that will help inform your decisions! We are here to help – with no obligation.