Hello Everyone and thank you for watching. This is Gia with Palm Beach Premier Real Estate here in Boca Raton Florida with your 2-minute local market report for AUGUST 2016.
So here’s a quick take on the numbers that just came out from the Realtors Association of the Palm Beaches
The message this month from the association is: Inventory Is Growing… Median Prices Stable
So in taking a closer look at the numbers….In a nutshsell – What we’re seeing is the following:
1. FIRST – New Listings are Up 8% and Active Inventory is Up 6%
2. SECOND – We are approaching 5 months supply of Inventory
3. THIRD… Interest rates remain low with the Federal Reserve choosing to defer another rate hike until possibly December now
4. FOURTH – The numbers here in Palm Beach County continue to favor Sellers for now….Sellers are getting a median of 95.1% of their list price … with homes going under contract in 45 days …..if priced correctly of course…..
5. And FINALLY, FIFTH…. Countywide, prices are in a holding pattern. The median price of a house sold in Palm Beach County in August was $315,000. That’s a bit below June’s $320,000 and July’s $317,250
So….what we can clearly see from the August data is that while home sellers are still in a favorable position, the marketplace is clearly changing….and a softening of prices is eventually going to occur if these trends continue…….. And of course….as we have been mentioning for several months now….. Prices do represent a lagging indicator.
Keep in mind that we have been on a great run since 2011 and as with all bull market runs, eventually they do run out of steam….
To quickly add some recognized weight to this….. The Standard & Poor's/Case-Shiller home price index - recognized as one of the best measures of home values because it tracks the price of the same house over time - indicates that things are indeed slowing down in South Florida with the real estate market less frenzied than it was last year and the year before. Even with the shortage of listings, buyers are holding firm and refusing to engage sellers, particularly on overpriced properties. Some homes are taking longer to sell, and price reductions are becoming more common.
Going forward we will definitely be keeping a continued close watch on prices, inventory levels and the number of closed sales.
If you’ve been considering taking advantage of the strength in the marketplace – now is a great time to sell! …
And for buyers…. The average interest rate for a 30-year fixed rate mortgage remains at near historical lows with an increasing amount of supply now available from which to choose.
Please give us a call for a confidential consultation at 561.395.8418 or email us at Info@PBPrealestate.com - we’re here to help!
As always we look forward to speaking with you. Thank you for watching. We’ll see you next time….!