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 2023. Read on to learn more about the real estate market in South Palm Beach County and beyond:
According to the National Association of REALTORS® (NAR), existing-home sales have experienced a slight dip for the second month in a row, falling 3.4% nationwide. This decrease can be attributed to higher interest rates, which are impacting buyer affordability. Compared to the same period last year, sales are down a significant 23%, while contract signings have dropped by 20.3%.
As the market cools down, buyers in certain regions have found some relief in declining sales prices, which have seen a 1.7% year-over-year decrease nationally. However, it's important to note that more affordable markets are still witnessing price gains, indicating a diverse real estate landscape.
Let's take a closer look at the numbers in our neck of the woods (all numbers are year over year). New listings have decreased by 21.9% for single-family homes and 15.7% for townhouse/condo properties. Pending sales have seen a decline of 3.3% for single-family homes, while experiencing an 8.9% increase for townhouse/condo homes. Inventory levels have seen an interesting shift, with a 6.8% increase for single-family homes and a substantial 53.3% increase for townhouse/condo properties.
Now, let's talk about the prices. The median sales price for single-family homes has gone up by 1.6%, reaching $635,000, while townhouse/condo homes have experienced a modest 0.3% increase, bringing the median price to $300,000. However, we should note that the time it takes for a property to go under contract has seen a significant increase. For single-family homes, the median time to contract has risen by a whopping 257.1%, and for townhouse/condo homes, it has increased by 237.5%.
One of the contributing factors to the lower-than-average home sales this time of year is a shortage of inventory. Homeowners who secured mortgage rates much lower than the current rates are opting to hold off on selling until the market conditions improve. This shortage, combined with fluctuating interest rates, has caused some buyers to sit on the sidelines. As we headed into May, there was only a 2.9 months' supply of available homes, leading to a fast-moving market. In fact, the typical home spent just over three weeks on the market, according to NAR.
So, there you have it! While the real estate market in Boca Raton is experiencing a bit of a slowdown, there are various factors at play. Fluctuating interest rates and a shortage of inventory are impacting home sales. However, if you're a buyer looking for a deal, declining sales prices in some areas might provide some opportunities. Keep an eye on the market, as conditions are ever-changing.
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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
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