Newly released market statistics from Florida Realtors® are in, showing recent real estate market activity in our area. The reports compare year over year data for June. Read on to learn more about the real estate market in South Palm Beach County:
Rising inflation, soaring home prices, and increased mortgage interest rates have combined to cause a slowdown in the U.S. housing market. To help quell inflation, which reached 8.6% as of last measure in May, the Federal Reserve raised interest rates by three quarters of a percentage point in June, the largest interest rate hike since 1994. Higher prices, coupled with 30-year fixed mortgage rates approaching 6%, have exacerbated affordability challenges and rapidly cooled demand, with home sales and mortgage applications falling sharply from a year ago. New Listings increased 20.0 percent for Single Family homes and 7.5 percent for Townhouse/Condo homes. Pending Sales decreased 24.8 percent for Single Family homes and 23.9 percent for Townhouse/Condo homes. Inventory increased 24.3 percent for Single Family homes but decreased 13.1 percent for Townhouse/Condo homes. Median Sales Price increased 26.5 percent to $670,500 for Single Family homes and 33.3 percent to $300,000 for Townhouse/Condo homes. Median Time to Contract increased 25.0 percent for Single Family homes but decreased 52.9 percent for Townhouse/Condo homes. Months Supply of Inventory increased 53.3 percent for Single Family homes but remained flat for Townhouse/Condo homes. With monthly mortgage payments up more than 50% compared to this time last year, the rising costs of homeownership have sidelined many prospective buyers. Nationally, the median sales price of existing homes recently exceeded $400,000 for the first time ever, a 15% increase from the same period a year ago, according to the National Association of REALTORS®. As existing home sales continue to soften nationwide, housing supply is slowly improving, with inventory up for the second straight month. In time, price growth is expected to moderate as supply grows; for now, however, inventory remains low, and buyers are feeling the squeeze of higher prices all around.
Inventory Increases for Second Straight Month in Palm Beach County
“Housing inventory has increased for the second straight month in Palm Beach County. With the federal interest rate hikes we’ve seen throughout the year, we knew this was going to play a role in shifting the market. In June, we saw inventory in Palm Beach County increase 51.4 percent to 3,421 listings and supply of inventory rise 51.4 percent to 1.9 months,” said Carlos A. Melendez, President of Broward, Palm Beaches & St. Lucie REALTORS®.
Inventory is the number of property listings that are active at the end of the month. Meanwhile, months’ supply of inventory is an estimate of the number of months it will take to deplete the current inventory given recent sales rates.
“Despite more inventory entering the market, our median home price continued to increase at 24 percent to $620,000. However, it’s worth noting that closed sales are decreasing. Sellers who have been waiting for the opportune time to list their property should speak to a local REALTOR® now. Only a REALTOR® has the expertise to help you sell your home before the market levels off in your unique community,” continues Melendez
Want to know more?
I’m always here to help you navigate the local market. I can analyze the specific neighborhood and price range for you, whether you are interested in buying or in selling. Contact me today for a customized look at the latest conditions for the Boca Raton real estate market and beyond.
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