Although we have seen a significant slowdown in buyer activity throughout South Florida and across the country, home prices remain high. However, given the lower amount of buyer traffic for homes listed for sale now, we are also seeing a higher proportion of price reductions. Recently, we were able to analyze the latest home sale trends for the month of July for Palm Beach and Broward counties.
A deeper look at Palm Beach & Broward counties
In Palm Beach County, the median single family home sale price is $600,000 in July of 2022. This represents a 20% increase in price compared to July of 2021, which was $500,000. There are several statistics that are starting to favor buyers, such as the number of active listings has increased dramatically and the ratio of sale price to list price is dropping. This is not surprising as we have seen homes remaining on the market longer and thus having to lower their asking prices. The median time to contract increased to 14 days from 10 days the year prior. Fortunately for home buyers, the months’ supply of inventory grew to 2.7 months from 1.5 months last year.
As for townhomes and condos, the median sale price is $290,777 in July of 2022, which is nearly a 25% increase from July of 2021. The number of active listings increased 20% compared to the year prior.
As for Broward County, the median price of a single family home hit a new record high of $600,000 in July of 2022. This represents a $105,000 increase over July of 2021. Although the inventory of homes for sale has increased by 37%, homes still sold quickly with a median of 13 days to contract. On average, homes sold at prices equal to the list price.
The median price for Broward county townhomes and condos in July of 2022 is $265,000, which is an increase of 23% compared to July of 2021. Townhomes and condos are selling quickly in Broward county… the observed median number of days to get under contract in July of 2022 is 14 days. Whereas, in July of 2021 the median number of days to contract was 24 days. The inventory of Broward county townhomes and condos dropped by 12% compared to last year.
Summary
There is no doubt that the rapid rise in mortgage rates combined with record-high inflation and a recession have provided some significant headwinds for the housing market recently. With this said, it is important to remember that mortgage rates are still considered to be low from a historical perspective. Nonetheless, the market continues to be plagued by a very low inventory of homes for sale. It is for this reason that most economists and real estate professionals do not expect to see another collapse in the housing market like we saw in 2008. In addition, locations such as South Florida continue to see an increase in the number of Americans relocating to our area. Are you considering buying or selling real estate in South Florida? We can help. Contact Natasha at Live South Florida Realty, Inc. today! While you are at it, be sure to download the free Florida Home Search App as well.
