Things are beginning to normalize following the havoc that Hurricane Irma inflicted on South Florida late this summer, as described in detail in our September 2017 Market Report. Despite a 30% drop in Closed Sales Volume that month, we are seeing the revitalization signs we expected to see for October.
While Closed Sales Volume was down a little more than 3% for October, New Pending Sales and New Listings both showed healthy gains for the month at 14% and 22%, respectively. New Pending Sales are particularly important, because that tells us how many deals are waiting to close, while New Listings tell us how many came on the market during the month.
With 1,570 in New Pending Sales for single-family homes in Palm Beach County coming down the pike, that should eclipse our current Closed Sales Volume of 1,261 for October 2017. When the November report comes out, we should expect to see between a 10% – 20% increase in Closed Sales Volume.
Not surprisingly, following Hurricane Irma, Cash Sales continue their decline, with 10% fewer cash deals closing as compared with October 2016. Expect that trend to continue until the beginning of the year, when we will likely see a bump as investors look to put their cash to work in the first quarter of 2018.
Dollar Volume, which measures the aggregate dollar value of all single-family homes that exchanged ownership in October 2017 was basically flat over the prior year, while Median Sales Price has increase about 5% from this time last year.
A 5% year-over-year increase is a “Goldilocks” figure – not too hot, and not too cool. It’s just about right.
Of course, down to the municipality level, that figure fluctuates. West Palm Beach and Delray Beach saw about a 10% year-over-year appreciation in median home sales, while Lake Worth, Boynton Beach, and Jupiter all tracked the market at between 4%-7%. We will delve deeper into municipal reports in the first quarter of 2018, which we do a “year in review” analysis for 2017.
Months Supply of Inventory remained flat at a constant 5, which indicates the current market would need 5 months to liquidate all the homes currently on the market right now. This is a handy metric for gauging whether it’s a buyer’s market, or a seller’s market. Anything below 5 months is a seller’s market, while anything over 5 months is considered a buyer’s market. We are right smack-dab in the middle.
What to look for in the coming months
As we round out 2017, there’s a few considerations we want to leave buyers and seller with. First, inventory is healthy, but as we have seen all year, demand for single-family homes in Palm Beach County continues to feed itself. New buyers are entering the market every single day, but listings have struggled to keep up. It looks like we may have caught a break in that trend over the last quarter of 2017, however. With new listings up over 20% from this time last year, that’s a good sign that new sellers are coming into the market to meet buyer demand.
For potential sellers who are thinking of putting their home up for sale, you may want to consider the first quarter of 2018 as a good time to do so. We generally see feverish activity from buyers immediately following the holiday season. If our listing marketing plan is already in place for you, and you are already up on the MLS as buyers start looking, your listing is going to stand out. Give us a call at 561-500-LIST (5478) for a free listing consultation anytime.
October 2017 Single-Family Real Estate Market Stats
|SINGLE-FAMILY HOMES||OCT 2017||OCT 2016||PERCENT CHANGE|
|Median Sales Price||$325,000||$310,000||4.8%|
|New Pending Sales||927||1,508||38.5%|
*Source: RAPB Single-Family Home Market Report