The Month of August 2016

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Real Estate Market Report August 2016Here’s your real estate market report for August 2016!

Single-Family Homes

Closed sales in August for Palm Beach County single-family home finally turned a positive trend last month, after six continuous months of year-over-year declines. There were 1,683 homes exchanged, for a nearly 12% hike from August 2015. Every month this year but January say a year-over-year decline, until last month.

Closed sales are a crucial metric, but it doesn’t tell the story of Palm Beach County by itself. Other important metrics work in conjunction to give us a notion of the strength and stability of the market, and where it might be heading this time next year.

Also, as we get closer into season come October through December, you can count on double-digit gains in closed sales year-over-year for 2016.

Cash sales as a percentage of closed sales continues it’s four-year slide. But at not time since 2012 have the number been this low, at 30%. That’s a 15% drop from this time last year. If you’re still looking to make a million dollars flipping homes, of that “sweet deal”, those days are pretty much behind us!

Median sale price scored in at $315,000, a 7% increase from 2015. Once again, we’re seeing solid, stable pricing throughout the county. That trend will continue through the year, and we should be looking at around a 5% calendar-year increase in prices.

A handful of municipalities saw double-digit year-over-year increases in their median sales price for August 2016 – Atlantic (+14%); Boca Raton (+21%); Boynton Beach (+20%); Delray Beach (+12%); Loxahatchee Groves (+27%); Palm Beach Gardens (+19%); Riviera Beach (+54%); Royal Palm Beach (+13%); West Palm Beach (+38%); Greenacres (+38%).

Greenacres (+38%) and West Palm Beach (+38%) are no surprise to us. Heck, it’s where our office is located for a reason! We have sold a number of homes in both cities this year, and have seen those homes sell quickly, sometimes sparking a bidding war. The reason is that buyers are looking for “entry-level homes” in the $150,000 – $250,000 price range, and these two cities offer the most options in that very competitive market.

Townhouses and Condos

The townhouse and condo market is exhibiting the same trends as we see in the single-family home market, but to a lesser degree. Median sales price climbed two-digits year-over-year, to $160,000 (+16%). Also, dollar volume reached $263 million, a pretty common number for this time of the year.

Over November and December, we will probably see a slight bump in all three signals – closed sales, median sales price, and dollar volume – as we head into South Florida’s winter season.

New listings in the townhouse and condo market are up again for August 2016, to the tune of about 7.5%. There are at least 1,509 new, active listings throughout Palm Beach County! If you’re interested in the townhouse lifestyle, now is the time to get in. Prices and inventory are high, and transaction volume is relatively low this time of year. Stop waiting – now is the time to buy or sell!

Speaking of amazing townhouses, check out this incredible new townhouse listing in Villas on Antique Row!

Closed Sales 1,683 1,506 12%
Median Sales Price $315,000 $294,000 7%
Days To Contract 45 46 -2%
Active Listings 6,808 6,423 6%

*Data provided by Realtor’s Association of the Palm Beaches (RAPB)

If you or someone you know is in the market to buy or sell, and you’re looking for an excellent Realtor you can county on, consider giving us a call! We know the market, and we listen to you and your goals. Call 561-500-LIST (5478) or catch us on Facebook or by email!

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