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 May 2021. Although much of the change year over year is distorted by the slow real estate market during the height of the pandemic in May 2020, it is still interesting to see the state of our current local market. Read on to learn more about the real estate market in South Palm Beach County:
Demand Continues to Outpace Supply
As the weather warms and pandemic restrictions ease across much of the country, the U.S. housing market shows little sign of cooling. Robust buyer demand, fueled by low mortgage rates, continues to outpace supply, which remains near historic lows. Nationwide, inventory remains much lower than it was at this time last year, and sales prices are surging as a result.
Local Market Summary
New Listings increased 24.9 percent for Single Family homes and 18.9 percent for Townhouse/Condo homes. Pending Sales increased 32.9 percent for Single Family homes and 106.1 percent for Townhouse/Condo homes. Inventory decreased 65.4 percent for Single Family homes and 58.6 percent for Townhouse/Condo homes. Median Sales Price increased 25.9 percent to $491,000 for Single Family homes and 21.2 percent to $234,000 for Townhouse/Condo homes. Median Time to Contract decreased 75.8 percent for Single Family homes and 61.2 percent for Townhouse/Condo homes. Months Supply of Inventory decreased 75.0 percent for Single Family homes and 72.7 percent for Townhouse/Condo homes.
With such limited supply of existing homes to purchase, all eyes are on home builders to provide a much-needed boost of inventory to the market to help meet buyer demand. However, increasing material and labor costs, along with supply chain challenges, have contributed to significantly higher construction costs, with builders passing these costs on to homebuyers. And while the warmer temperatures, rising sales prices, and the reopening of the economy may draw more sellers to the market, historically low levels of homes for sale are likely to continue for some time.
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.
Posted by Gloria Singer on