Palm Beach County: Why Are Home Sales Leveling Off?
WASHINGTON, D.C. – September 22, 2015 – (RealEstateRama) — With the release of market statistics for August, economists noticed a surprising indicator year-over-year. First, there were the predictable trends: median sale price climbed 9.3 percent from $270,000 to $295,000; median days on market dropped 34.5 percent from 55 to 36 days; active listings decreased 7.9 percent from 7,187 to 6,622 listings; and months’ supply of inventory declined 21.6 percent from 5.6 to 4.4 months.
Then, contrastingly, closed sales, which reported 16.2 to 19.5 percent increases earlier this summer, became the “elephant in the room” with a mere 1.2 percent increase from 1,500 to 1,518 sales. With other indicators pointing toward continued strong demand and tight supply, a sizeable increase in closed home sales was expected, and the lack thereof warranted a closer examination of the numbers. Within the breakdown, we saw a 16.6 percent decrease in cash sales from 662 to 552 transactions along with decreases in sales below $200,000. These numbers suggest that cash buyers are diminishing due to declines in lower price points.
“In August, home sales leveled off due to a significant decline in cash sales. However, the number of financed transactions have increased year-over-year, and now that the Federal Reserve has opted to keep interest rates near zero, we expect to see borrowers continue to obtain financing in the coming months. If you are selling your home, we encourage you to be more receptive to offers with financing contingencies in light of the shrinking number of cash buyers,” said Matt Halperin, 2015 President of the Realtors® Association of the Palm Beaches (RAPB).
As for the townhouse/condos sector, we saw similar market indicators. Closed sales increased a mere 1.6 percent from 1,069 to 1,086 sales. Within the breakdown, cash sales decreased 8.4 percent from 728 to 667 transactions, and overall sales below $150,000 declined. Meanwhile, other indicators pointed toward continued strong demand and tight supply: median sale price climbed 4.3 percent from $132,250 to $138,000; median days on market dropped 19.6 percent from 56 to 45 days; active listings decreased 10.5 percent from 5,918 to 5,297; and months’ supply of inventory declined 13.3 percent from 5.2 to 4.5 months.
For detailed information about market statistics for Palm Beach County, find your perfect, local REALTOR® match today by visiting www.SouthFloridaPropertyMatch.com.
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About Matt Halperin: Halperin is also the Direct Sales Manager and a REALTOR® of The Keyes Company in Wellington and can be reached at 561-967-4300 or mhalperin5 (at) gmail (dot) com for questions.
About the Realtors® Association of the Palm Beaches (RAPB): RAPB is the 6th largest local association in the country representing over 14,000 REALTOR® members involved in all aspects of residential and commercial real estate throughout Southeast Florida. RAPB members are “The Voices for Local Real Estate,” providing consumers with real insight on the homeownership process with data accuracy and market expertise. Many of their members also engage in one or more divisions offered through RAPB, including the REALTORS® of St. Lucie County (RSLC), REALTORS® Commercial Alliance, the Young Professionals Network, and the award-winning Global Business Alliance. Consumers will find their perfect REALTOR® match from RAPB by visiting www.SouthFloridaPropertyMatch.com.
Writer: Cecilia Van Wert, Communications Specialist with the Realtors® Association of the Palm Beaches (RAPB).
by Danielle Boutin
