The Palm Beach County Real Estate Market Report for May of 2017 gives us a glimpse into what to expect for the summer months. Generally, activity begins to pick up around April of every year, and gains steam right through August, as residents of South Florida re-locate, upgrade, and downgrade their homes.
May, June, and July tend to be the most active months of the year, and it showed in May’s market report.
Median Prices for single-family homes in Palm Beach County rose again to $335,000, or about 8% year-over-year from May 2016. Astute readers will recall that the April 2017 market report marked a 10-year high in median home prices at $327,000. Cause for panic? We’d say not. Given that the middle of the year is when most people buy and sell their homes, higher prices is a function of supply and demand, not artificial inflation.
Another important metric tells us that the market is stable, and that is Months’ Supply of Inventory. Inventory tells us how long it would take all of the buyers in the market to deplete the active listings on the market, with 5 months’ supply being in equilibrium. May 2017 logged 4.9 months. That’s well within the expected range, and it means that the number of buyers slightly outpaces the number of available properties.
New Listings are down -2.2% from this time last year, and Active Listings are down a little over -1%. With all the buyer demand we know will be coming into the market over the next few months, we would really like to see a positive upswing on those numbers.
Of course, home price range makes a difference, too. Homes in the $600,000 – $999,999 price range saw a 45% jump from May 2016 in the Closed Sales by Sale Price category.
Cash Sales were 14% higher than this time last year, as inventors continues to gobble up single-family home properties, but we should see cash buyers begin to dissipate over the summer months. It took slightly longer than usual for sellers to ink a deal, with Median Time to Contract being 48 days, up front 42 this time last year.
All in all, the story stays the same in May 2017 – median prices are rising, and inventory is tightening. There’s a lot of buyer competition out there, so coming in strong on your offers is a must. And for sellers, potential buyers are looking at your home. Is it priced right? Does it show well? Does your agent (if they are not a Copeland & Co. agent) know what they are doing when it comes to marketing and promoting your home?
May 2017 Single-Family Real Estate Market Stats
|SINGLE-FAMILY HOME||MAY 2017||MAY 2016||PERCENT CHANGE|
|Median Sales Price||$335,000||$310,500||8%|
|New Pending Sales||1,965||1,883||4.4%|