November 2022 Market Report – October 2022 Data for Palm Beach County – By Amy Snook
It was a bit shocking to see the change in numbers this month related to inventory and balance of market – we have “felt” the change in the market but still surprised to see the uptick on the higher end market tipping the scales at the million dollar price point and beyond to the verge of a buyer’s market.
It is official, at the higher end market we are back to prepandemic seasonality, time to contract/closing and the skills needed to sell a home (now you have to actually have them😊). While we are still above pre-pandemic price points, as to be expected, we are leveling off. The demand in Florida is still stronger than most of the country – we attract the 2nd home, vacation home, rental market and those from up north that simply want our weather and lifestyle. However, there are changes ……
Cash sales are down significantly, inventory is up across the board and new listings on market have slowed. The mortgage rates and stock market portfolio losses are impacting all markets and Palm Beach county is not immune to these changes. Don’t get us wrong, homes are still selling – we are in fact busy realtors – but the homes are taking longer to sell, our costs to market homes has increased significantly and our time for showings (yes, we personally show our listings) and open houses take more manpower. Of course, we’re not complaining as this is what differentiates great agents from the pack. We’re sharing because it is a distinction from what has occurred over the past several years.
People often ask us whether this is a good time to sell and/or to buy. The answer is yes; however, the strategy and the numbers change. Specifically, some buyer’s obtaining a mortgage may have to reduce their price point to keep their monthly costs the same. And, what goes into selling your home, from staging to repairs should be considered more so then before. Regardless, there is additional inventory now for buyers to choose from and sellers, there are buyers still wanting to buy. Get ready to work with your Realtor (Amy and Noreen Team preferably) to ensure your home stands out from the rest.
For those of you who follow our monthly market report and follow the numbers indicating the market strength and leverage, they are as follows:
As you recall, balanced market is 6 to 9 months of inventory – meaning if nothing else came on the market how many months would it take to “consume” all of the inventory. Over 9 months buyer’s market..
400,000 – to 599,999 – 4 months of inventory –
599 – 999,999 – 6 months of inventory – recently reached a balanced market and sellers have lost their advantage
1,000,000+ price point 9 months (yes I said it 9 months) – first time in 2022 that we have reached 9 months of inventory – there are now many options for buyers to select from, hence the price reductions we’re seeing on market
Understanding the market helps agents and consumers alike make educated decisions – this is why we spend time every month sharing our research and what it means to you.
If you have questions or would like to discuss the results any further, please do not hesitate to reach to us at 561.571.2289.
Amy
