Mid-summer in Palm Beach County has proven to be a damper on single-family homebuyers’ ambitions.
The Real Estate Market Report for June and July 2017 in Palm Beach County was a typical one for this time of year as homebuyers and sellers took a breather from the frantic pace of buying and selling throughout the winter and spring months.
1,855 single-family home transactions closed in June 2017, a peak for the year, was about 2% higher than in June 2016; and for July 2017, that number dropped down to about 1,500. Blame it on the heat, or the kids getting back to school – either way, transactions are slowing, and will probably come in around 1-2% less than that for August 2017.
Single-Family Home Prices
The slowing pace of sales transactions hasn’t had much of an effect on prices, however, as the median sales price of a single-family home in Palm Beach County continues its steady climb higher. Prices hit a meteoric high at $345,000 for June 2017, then leveled out at $336,000 for July 2017, still about 7% higher than prices last year for the two-month stretch.
We are seeing the effects of higher prices right down at the neighborhood level. Our Realtors can tell you of neighborhoods and areas where home prices are up between 7% and 12% over the last four years in West Palm Beach, Lake Worth, and Wellington.
New Listings Takes a Jump – Good for Buyers, and Sellers!
The market is anticipating the post-summer return of homebuyers, as new listings register at just over 2k. That’s a flat number month-over-month, but more than 8.5% higher than the end of summer 2016. That is good news for both buyers and sellers – sellers are poised to meet the demand homebuyers continue to exert.
Dollar Volume, and Why It’s Important
Dollar volume is the calculation of the value of all closed transactions, and that indicates just how much money exchanged hands. That’s important because it includes all the single-family home transactions across all the different price ranges.
Aggregate dollar value in July 2017 was about $722 million, down about 3.5% from this time last year. But, dollar volume was down about 25% from June 2017, which clocked in at about $1 billion.
What’s that telling us? It could mean that buyers across the board, across many different price ranges, took a break in July. It’s a consensus – mid-summer is not the time to get into a contract.
Of course, by the time you read this, we are in September 2017, and while we should expect to see about the same level of activity for August 2017, by September and October, we will see a pick-up in closed sales. Let’s hope that median prices continue to hold steady at around the $330,000 mark.
July 2017 Single-Family Real Estate Market Stats
|SINGLE-FAMILY HOMES||JULY 2017||JULY 2016||PERCENT CHANGE|
|Median Sales Price||$336,000||$317,000||6%|
|New Pending Sales||1,667||1,706||-2.3%|