August 2022 Market Report for Palm Beach County – By Amy Snook
Palm Beach County – Due to our area being a popular destination location for vacation, seasonal rentals, 2ndhomes and relocations, PBC reports a different real estate story than much of the country. I was recently interviewed by a reporter with the Sun Sentinel and while answering her questions regarding our current real estate market, I thought, maybe, I was off base as to the strength of our market; however, when the article came out, it was reaffirming that all the agents interviewed shared the same sentiments.
In analyzing the market, we review countless numbers and timeframes and compare the statistics to the same time last year (year over year) as well as month over month trends. To clarify, year over year, the seasonality aspect of our area greatly impacts the real estate market in Palm Beach County.
As we assess the August results for Palm Beach County..
Year over Year –
No surprise to any of us that the median and average prices are higher than they were in August 2021 – but, even with the higher price points, the total volume of closed sales for August 2022 is lower than August 2021. The fact is, we’ve had fewer closed sales this year than this time last year and the percentage of cash on these sales is down as well. At first glance, you’d expect to see cash sales increasing due to the rapid rise in interest rates; however, with prices still significantly higher than last year, investors seem to be holding and waiting for the market to cool. New pending sales and pending inventory are down from the same time last year – the net is that properties are not moving as fast as they were, in fact, inventory is up by 63% year over year. More inventory is coming to market which is adding to the current active listings creating more options in the market at all price points.
Month over Month –
August 2022 versus the past 4 months in Palm Beach county tells a very important tale – our market is leveling off price wise but at a much slower pace than the reports out from the rest of the country. Both median and average sales price are trending down when compared to the few months prior – we are now coming into season so it will be interesting to watch if this influx of people from out of our area impacts the pace in which our market is leveling. One of the lagging indicators of our market is median percent of original list price – Are Sellers considering less than list price? The answer is yes, they are – we have held strong in our area on this indicator but July and August results show that sellers are realizing that in order to sell their home they may have to come off their price for the first time in a while. New listings onto market have slowed this month versus last month which was different than what we expected. We have been busy bringing new listings onto market over the past several months and are surprised to see the numbers down in Palm Beach County – however, we realize that this is not across the board but rather an indication of the hot destination area in which our team works.
The results of the numbers show that the $300K to $999,999K price points remain a Seller’s market – however, a different seller’s market than over the past few years. Homes are taking longer to go under contract, longer to close (which is no surprise with fewer cash sales), homes are selling for less than list price and inventory is up significantly at these price points. Over $1,000,000M – we went from 5 months of inventory in July to 7 months of inventory in August – fewer new listings and fewer closed but more inventory? Yes, exactly what we have been saying for months – Sellers (and Realtors for that matter) need to adjust price at this higher end market. It is the not the same market that it was just a year ago – there is much more supply than there was, more options for buyers to choose from and now sellers are willing to negotiate and take less than their list price.
We are simply back to basics when selling homes in Palm Beach County’s high-end market. All that goes into preparing to sell your home really, really matters – taking time to get all of the information needed to properly market and sell a home is key. No more racing to market – do it right. Slow down, understand the attributes of the home, determine how to handle any potential deficiencies in a home – have a strategy or even fix it before going on market. While we have always shown our listings personally, we saw over the past few years more Supras (lockbox’s) than ever before. A home will not sell itself anymore for the highest and best price without an agent there to tell the story and properly sell and market the property. For the Amy and Noreen Team – we sigh a big sigh of relief – this is where we shine.
The good news for Palm Beach County- demand is still high and supply relatively low. Partner with the right Realtor (or in our case Real Estate Team), understand the market conditions and the reality of our current market. Homes will sell when marketed and priced properly.
