Real estate market is turning around in South East Florida and most of the USA. Inventory is growing fast and the number of sellers adjusting prices downward is increasing.
- Since December 2021 until today interest rates doubled while property prices in many communities and subdivision increased 10%-20%+
- In the end of May beginning of June the market reached it’s pinnacle and now the rest of June its started to shift dramatically.
- Started June and since, we experience major changes in listing growth. Daily new listings from 150-160 properties at the beginning of the month by end of the month now 500-600. While closing is increased slightly as well, the number of back on market properties (deal fallen apart) also increased significantly.
There is a 2,000+ net property inventory increase a week since sellers rush to find buyers before the market completely dies out.
Median sales price in May for single-family homes:
Palm Beach: $615,000
I am good with numbers, but do not have a crystal ball so I cant predict the future since the market is not a “Free Market”. its completely 100% politics.
The buzzwords: cooling off, stabilizing, adjusting, correcting and so on are all nonsense when there is a grave affordability crises. Above appraisable value properties are adjusting downward and some are now even below recent comparable sales.
All these indicates significant price reductions and on top of it a long list that can and might speed up the “correction”. Here is a few issue that will influence the market down:
- Rate increase in July (they already announced)
- While this crises is not about foreclosures, still notable that above 13 million people late with mortgage and rent payments and about 1.6 million of those are with mortgages 30 or more days past due or in foreclosure.
- For almost two years foreclosures were suspended.. While a some of it the market dissolved since price increase let people liquidate and walk away, a significant part is still there ticking.