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 December, as well as for the year end. Read on to learn more about the real estate market in South Palm Beach County:
2022 was a turbulent year for the US housing market, as inflation, soaring interest rates, and elevated sales prices combined to cause a slowdown nationwide. Affordability challenges continue to limit market activity, with pending home sales and existing-home sales down month-over-month and falling 37.8% and 35.4% year-over-year, respectively, according to the National Association of REALTORS® (NAR). Higher mortgage rates are also impacting prospective sellers, many of whom have locked in historically low rates and have chosen to wait until market conditions improve before selling their home.
"There's no doubt inventory has been the keyword in 2022 for South Florida's real estate market! Palm Beach County saw an increase of 190.9% year-over-year. With this trend, we are seeing that the market is changing. With growing inventory and new construction rising, buyers undoubtedly have more options," said Chris Krzemien, President of Broward, Palm Beaches & St. Lucie Realtors®.
In South Palm Beach County, new Listings in December 2022 decreased 17.3 percent for Single Family homes and 6.3 percent for Townhouse/Condo homes as compared to December 2021. Pending Sales decreased 30.2 percent for Single Family homes and 44.6 percent for Townhouse/Condo homes. Inventory increased 75.9 percent for Single Family homes and 70.1 percent for Townhouse/Condo homes. Median Sales Price decreased 1.6 percent to $542,500 for Single Family homes but increased 9.4 percent to $290,000 for Townhouse/Condo homes. Median Time to Contract increased 190.9 percent for Single Family homes and 100.0 percent for Townhouse/Condo homes. Months Supply of Inventory increased 138.5 percent for Single Family homes and 130.8 percent for Townhouse/Condo homes.
Economists predict sales will continue to slow and housing prices will soften in many markets over the next 12 months, with larger price declines projected in more expensive areas. However, national inventory shortages will likely keep prices from dropping too much, as buyer demand continues to outpace supply, which remains limited at 3.3 months, according to NAR. Even if prices fall, many prospective buyers will find it difficult to afford a home in 2023, as higher rates have diminished purchasing power, adding hundreds of dollars to monthly mortgage payments.
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