South Florida Housing Market Update | Team 22 Realty

Dated: September 7 2021

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What is going on with Real Estate in South Florida? Is it the right time to buy? Is it the right time to sell? Should I wait? Should I rent? Should I refinance? What do I do? 

Today we are going to take a deep dive into what's really happening in the Real Estate market in South Florida. More specifically in Palm Beach County, we’re looking at all the numbers and really trying to shed some light on what the data is telling us. If this is what you’re looking for and need in your life, keep reading to know more about what is in the Housing Market now or you can check out this VIDEO where we talk about it as well!

The world of real estate is constantly changing, so it's important to stay up to date with the latest updates. Here are some of the highlights from July 2021. In Palm Beach County for Single Family Homes, we sold 1,774 homes, down a little less from this time last year, about 8%. For new listings we are also down just over 46% year over year at just about 2,500 homes and down about 22% from last month's 3,185 homes. The inventory in Palm Beach County remains low at just 1 ½ months' worth of supply and this will keep us in what's called a sellers' market. A seller’s market is defined as a market with a monthly supply of inventory of only 5 months or less. So, if no other homes were to hit the market in Palm Beach County right now, it would take us 1.5 months to sell the number of homes we currently have. When we are sitting on a 6 months' worth of supply, we consider that a neutral market and anything higher than 7 months puts us in a buyers' market. When will it shift to a buyers market?

That is the question everyone has and the only real way to answer that is to follow the data.  Prices did remain the same this month compared to last, median sale price was $500,000, which is up significantly higher than last year’s $399,000 for Single Family Homes at this same time. We closed 1,774 homes this month, the average amount of days to accept a contract was 10 and the amount received was on average 100% of the asking price. Getting into the Townhomes and Condo’s in Palm beach county, we had about 20% less listings than the previous month at 2,256 units. The median sale price for condos and townhomes are up 13% from last year at $233,000. We still only have about 1 ½ months'worth of supply. The median days to contract was about 15 days for condos and the amount of asking price received was a little over 97%. As for showings lately, overall there has been a significant drop in the number of showings we’re seeing according to Showing Time as compared to the last couple of months. Now, the question is, is this just summer drop-off? I’ve looked at what the data showed and we’re still slightly ahead of where we were at this time last year. Could this be a sign, a glimmer of hope? The example I like to give is that it’s like when you’re driving 90 on the highway and you see a cop up a head. You immediately slow down to the speed limit and although it feels like you’re crawling to get up there, you’re actually doing the speed limit. What does this mean? It means the market is starting to get back to what some would call a normal price appreciation rate that’s more in line with income growth.

Here is a quote for sellers to note from Lawrence Yun, Chief Economist at the National Association of Realtors. He says, 

“Given that the sales activities are coming down, we may be sensing some turn in the market. We are seeing less prevalence of multiple offers, although it is still a seller’s market, no doubt.” He goes on to say, “Still a seller’s market, but people need to be very cautious how they price their homes to attract buyers, knowing that these sales activities are declining somewhat.”

Yes, we are still definitely in a seller’s market, there is no doubt about that. But we must always be conscious of what's happening in the marketplace and know how to stay in front of it, so you don’t get left behind. And that’s why we’re here! To be your knowledge broker and to get you all the info that you need to make the best decision in today’s ever-changing market. As promised we’re going to show you some of the hottest homes that sold this last month. 

First up we have our Hot Waterfront Property that sold in Plam Beach County. Located on a lot with 130 feet of ocean frontage, this house in Royal Palm Yacht Club has 7 bedrooms, 10 bathrooms and over 8,500 sq feet of living space. Built by CJM communities in 2020, the home sold for $24.5 million and was listed by Jonathan Postma from Coldwell Banker.

Next, we have our Hot Luxury Condo. This beautiful piece of real estate is well worth the price, it includes 3 bedrooms and 4 full baths and an additional powder room. The stunning ocean views are only amplified by its direct location on the white sand beaches of Singer Island. This perfect vacation home was listed by Wolf Velasco and Patrick Lafferty with Compass and sold for $5.8 million.

Hot New Construction The newly constructed Alina residences had a few more sales this month and this was our favorite. Unit 709 has 2 bedrooms, 3 bathrooms and 1 powder room. In addition to the 2,900 sq feet of interior living space, Alina offers 32K sq feet of outdoor amenities and is in the heart of downtown Boca Raton. This stunning property was listed by Marisella Cotilla and Alejandro Salazar with Douglas Elliman and sold for $2,840,000.

I hope you enjoyed this update and found it informative. There may be a piece of data that we left out, so if there’s something specific you want to know more about next time, please let us know in the comments below! To learn more about living in South Florida, check out our YouTube channel  for blogs related to life here in sunny south Florida!

Make sure you let me know in the comment section below and if you have any questions, please don't hesitate to reach out. Team 22 Realty, is always available to chat day and night.

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