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!
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.
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.
It’s always better to buy than to rent, right? … A client messaged Noreen and Amy asking for help convincing her daughter and son-in-law to buy a home instead of renting. The advice the Realtors gave her may surprise you!
If someone you know is interested in buying – now or in the future – let them know they can search listings here – and start to get familiar with the buying process and the market.
Or, contact us at (561) 571-2289 – or via amyandnoreen@allaboutfloridahomes.com – we treat your referrals like they are our own family!
Relocating to Palm Beach County? Is it better to choose a home with an HOA (homeowners association), or one without and HOA?
In this short video, Noreen reviews some pros and cons and offers some help with making this very personal decision. Check it out!
Want more info about neighborhoods? Read our tips here for evaluating which ones might be right your family!
