Whatever the reason, the median single family home price in the Northern Palm Beaches today sits at $900,000. That’s down 5.3% from the record high of $950,000 we hit back in June. Sales in July were down 19% from June and compared to one year ago were down a fairly significant 34%. Except for February, we have not seen a slower month for single family home closings since May of 2020.
Inventory of single-family homes has dropped slightly so far in August. It’s the first real drop we have seen for a long time, but still the number of homes on the market today is the highest it has been since way since way back in December of 2020. Interest rates have also been dropping over the past few weeks. The average overnight rate on a 30-year fixed rate this morning was at 5.53% and where that rate goes will play a very important role in where the real estate market goes.
The big question is, where do we go from here? As Paradise Sharks Real Estate has been telling you now for over 4 years, the key is sales above the million-dollar threshold. Closing of those homes had a lackluster July. It was the slowest July for closings above a million dollars that we have seen since Covid came to town. Compared to June numbers, sales above a million dollars dropped 33%. Compared to year ago figures, the drop was a more modest 10%. One bright spot is pending home sales at the top of the market are actually up about 13% compared to last year. Keep a very close eye on these numbers moving forward as they are going to tell a story.
The percentage of all single-family sales that closed above a million dollars dropped 17% compared to June. Single family home sales that closed with cash also tumbled in July by 10%. Both of these signs would point to more downward pricing pressure ahead.
It’s a very strange world right now. The latest inflation numbers come out tomorrow and almost everyone would hope for improvement. Government spending remains out of control so who knows. If inflation keeps up, it’s going to be interesting days ahead.
Stay informed if you care about where the Northern Palm Beaches real estate market is heading. Paradise Sharks Real Estate can help you as we love our clients, friends and neighbors to make informed decisions. We also love to save them money. It’s what we do.
Paradise Sharks Real Estate can still list almost any home in the Northern Palm Beaches for a maximum total commission of 3.5%. If we handle both sides of the transaction, your total commission will likely drop all the way down to no more than 2%. Decades of experience, pride in customer service, and value our competition just can’t touch. If we can ever be of service, or consultations are absolutely free and we would be honored to show you how we can save you tons of money. Contact us anytime at 561.308.0175 or firstname.lastname@example.org.