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Latest Market Report – January 2022 Results for Palm Beach County

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It’s the same ol’, same ol’ this month in the South Florida real estate market.

Once again, a low inventory of listings and an abundance of would-be buyers continues to make it a red-hot sellers’ market.

How will the forecast of increased interest rates change that, if at all? How will the war in Ukraine affect the U.S. real estate market, if at all? And now that America seems to be finally emerging from the Covid-19 shutdowns, will the influx of buyers into our Palm Beach County market continue?

These are questions that we are being asked daily from our clients and friends and while none of us have a crystal ball, we do feel our years of experience will help provide some insight.

Every month, we created a spreadsheet and conduct an analysis of the numbers of our market versus the rest of the state.

For example, our market is unique and usually differs from the reports summarizing the rest of the state and other price points across the nation. If you watch the local news, or follow real estate reports, a one-month inventory of the state lists a median sales price of $350,000. Palm Beach County’s median price, however, was $526,000 in January and our average price was $826,000. The huge differential is due to the number of seven-figure homes for sale which we have in Palm Beach County.

For those new readers to our report, understanding “months of inventory” is crucial. That term means a hypothetical that if no new homes were added for sale, how long would it take for every home for sale to be sold?

The statewide average inventory in January was one month, but in Palm Beach County homes under $999,999 is two months, but for over-$1,000,000 it has increased from December to January from three to five months, which was a needed increase toward a more balanced market.

Our Palm Beach market still attracts many new homeowners seeking our beautiful winter weather and outdoor lifestyle. Thousands more employees are working from home these days, which means they are free to relocate but still hold the same job. Also, thousands more are buying second homes in South Florida. We do not see this slowing down any time soon.

Some say that the market is softening when they see a price reduction in a home.

However, to us that just meant that agents had overpriced the homes to begin with. They were overpriced, even in today’s terms, and sat on the market. If you price your home right however, it will attract a buyers’ frenzy.

So, what does our future hold?

We believe that the upcoming increase in interest rates will have only a moderate impact in our market – mostly with the lower price points. But on $800,000 homes and above, we will continue to see mostly cash transactions. In fact, in January, there was a 30 percent increase in cash transactions from the same time a year ago.

We will have would-be buyers find properties — and emerge as the actual buyer should a bidding-war ensues against others who want the same home. And that is happening now more than ever. Should you want to sell and take advantage of this super-hot market, we also know how to price and market your property effectively to capitalize on all these factors.

We would love the opportunity to discuss your personal situation and what is best for you.

 

PALM BEACH COUNTY REAL ESTATE MARKET REPORTS – March 2019

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The Realtors of the Palm Beaches and Greater Fort Lauderdale – and our state-level counterpart Florida Realtors – have released their market reports for March of 2019. Here is our analysis! 



The first notable: Sellers of higher-end homes did in fact get more realistic and reduced their pricing to more appropriate levels – market supporting.  As we predicted, homes started to sell as a result.    

How do we know this?  

First (and the easier factor to spot): the inventory went down in terms of homes over $1,000,000.  

Second: Further data to support this is that the “average sales” for all of Palm Beach County increased at a higher rate than did the median sales price.  This indicates that we had sales of higher-end homes!


Overall, the market analysis for this month indicates a more typical – more stable – market… and we really needed that!   

Buyers need this to know this is a good time to buy – that they are not overpaying – and that the market supports the  pricing in which we are operating.



The $400,000 to $500,000 price point moved from a buyers’ market to a balanced market. All other market segments (from our report last month) stayed about the same.  However, the number of months of inventory improved again – supporting the fact that we are in a more stable environment for all!

 

Contact us at (561) 571-2289 – or via amyandnoreen@allaboutfloridahomes.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.

 

 

 

PALM BEACH COUNTY REAL ESTATE MARKET REPORTS – January 2019

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January 2019 figures have been released, and WOW!… What a difference in the real estate market stats, as we start out 2019.    

We saw a tremendous jump in inventory, which has significantly increased our supply of homes – and changed the dynamics of the market. It’s official, we are predominately a buyer’s market.    

There is a good trend here.  Sellers, you may not love the shift, but in the long run it is the best thing for our economy – and for all of us in South Florida.    

With inventory rising and closed sales down for the second month in a row, there are many more choices for buyers. The over-abundance of over-priced homes may be impacting the sales growth that our stats show.

Prices are starting to level out – and many agents are finally coming to the realization (we have been telling everyone for months! ?) that they need to adjust their prices to more realistic numbers – so that we can start moving properties again in Palm Beach County.

Several of our clients have asked why closed sales in January are down, in terms of the year-over-year figures. (We have the savviest clients!) Our thoughts, which are also supported by economists reports from Florida Realtors, are that this is due to mortgage interest rates, stock market volatility and the temporary government shut down. All of these occurrences may have impacted our January closed sales. Quite frankly, consumers were focused elsewhere – and with many homes over-priced – they decided to wait!     

All of that said, we guarantee that if you price right, and your listing agent markets your home the right way (versus simply putting it in MLS and praying), then your home will sell. The All About Florida Homes Team put six homes under contract in January – it can be done!

Contact us at (561) 571-2289 – or via amyandnoreen@allaboutfloridahomes.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.

PALM BEACH COUNTY REAL ESTATE MARKET REPORTS – December 2018

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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 amyandnoreen@allaboutfloridahomes.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.

 

PALM BEACH COUNTY REAL ESTATE MARKET REPORTS – October 2018

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We love this time of year! … Assisting buyers to get into new homes before December 31st for homestead…  Working with sellers to find new homes so the buyers can get in by December 31st… ? and of course, enjoying our beautiful Florida winters!
October 2018 provided our market with the second largest year over year growth! Our Palm Beach County marketplace continues to show robust price growth.  There is a however, a BUT…(isn’t there always?)

 

How this growth impacts you really depends on your price point.

 

Here’s what the numbers are telling us right now:

$300-400K market: This is a sellers’ market and does show a strong growth of prices. It will be interesting to see how this segment is impacted as mortgage rates rise in 2019.
(Sellers: important point here – NOW is the time to sell before a rate increase – and while it is still a sellers’ market!)

$400,000-999,999 market: This is now a balanced market.  

$1,000,000 and above:  This remains a buyers’ market – and then some! – with 17 months of inventory (this is a lot).  
So what does this mean? We still have many over-priced homes in the high- end market.  In October, “percent of list price” and “time to contract” were both longer than they were the same time last year!   

We are seeing sales at the high end (especially those listed by the All About Florida Homes team). But, sellers,  you need to be realistic on your price and compare to what has sold – not what is currently listed.  Homes can and are being sold – we are simply dealing with a shift in our market and reality is once again prevailing!

 

If you’re interested in buying – now or in the future – you can search listings here – and start to familiarize yourself with the buying process and the market.

If selling may be in your future – or you’re just curious about what your home is worth today – you can request a no-obligation home value assessment here. 

Or, contact us at (561) 571-2289 – or via amyandnoreen@allaboutfloridahomes.com – if we can provide you with any additional market data that will help inform your decisions! We are here to help!

 

PALM BEACH COUNTY REAL ESTATE MARKET REPORTS – September 2018

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It’s hard to believe that it has been one year since hurricane Irma battered Florida. As you will recall, many areas were out of commission for several weeks after Irma. For this reason, when we look at September 2018 real estate stats and see what we can learn from them, the year over year results are somewhat skewed.   

So, rather than focusing on year over year, let’s simply talk about the inventory and our current market.  As you will recall from past months’ posts, we use inventory as one indicator of the market. 6-9 months of inventory means a balanced market Less than 6 months of inventory is considered a “seller’s market,” and more than 9 months indicates a “buyer’s market”.  

While, based on these benchmarks, most of our September 2018 results did not shift out of the defined market description since last month (for example, the 400-599K range is still a balanced market), each of the markets analyzed by us did go up by at least one month of additional inventory. So there is some evidence of a shift. Details:

  • The $300,000-399,000 range saw an increase from 4 to 5 months of inventory.  
  • The $400,000-599,000 range saw an increase from 6 to 8 months of inventory.
  • The $600,000-999,999 range saw and increase from 9 to 10 months on inventory.
  • AND, check this out: The $1,000,000+ market jumped from 16 months to 24 months of inventory – WOW!!!

What does this mean for the market? It means we are in a shift.  

Sellers: it IS going to take longer to sell your home. So, staging, curb appeal and price are critical components even just to get buyers through the door.   Choosing the right Realtor to sell your home is even more critical than in the past. The following skills and activities are all imperative to a successful strategy for selling your home:    

  • Ongoing marketing
  • Analysis and tweaking of that marketing strategy
  • Expert review and consideration of showing feedback

Luckily, these are our strengths. The All About Florida Homes team focuses on strategy. We are not afraid to look at the real numbers, and the real feedback. We know that it’s critical to continually analyze and be willing to pivot or double-down when needed.   

For this reason, we are also quite well-known for listing – and selling – homes that were previously on the market but didn’t sell. This is where our skills and experience shine, and we can help you, too!

Contact us at (561) 571-2289 – or via amyandnoreen@allaboutfloridahomes.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.

 

 

SUMMER 2018 – PALM BEACH COUNTY REAL ESTATE MARKET REPORTS

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Summer is wonderful! It’s time to take vacations with the family, enjoy the summer heat, and take advantage of great summer specials around town.  And, it’s a great time to get your home ready for sale before the school season starts again.

We have good news as we evaluate the June market reports, which were released recently by the Realtors of the Palm Beaches and Greater Fort Lauderdale.

Inventories are still low…however, it does appear that the market maybe stabilizing. Indicators suggest the inventory crisis may not be getting any worse.  It isn’t getting better quite yet, but at least we may start heading in the right direction! The current low inventory does, of course, drive up home prices. But we are optimistic about it normalizing and look forward to the market reports for Palm Beach county for the next quarter. 
 
The market balance has not changed since we last reported these stats to you:

  • In the category of “under $400K,” we still have a seller’s market. If you are selling in this range, your home still needs to be priced properly and staged to sell. But if priced right, your home will go under contract!   



 

  • In the category of $400K up to $999K – it is balanced market. The best practices of good selling and negotiating prevail!

 

  • Over $1,000,000 – Sorry, sellers, it’s still a buyer’s market due to a plethora of inventory – 13 months’ worth in Palm Beach County, to be specific.  Sellers, in this category we must be strategic and patient in the process. Buyers will come but pricing, staging and marketing are very important given the positioning in this market.

 

Watch your neighborhood’s list prices to ensure your home is competitive. Analyze the neighborhood solds, too. Together we will determine the right price to sell, and help you reach your goals.

Contact us at (561) 571-2289 – or via amyandnoreen@allaboutfloridahomes.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.