South Florida Housing Market Update [May 2024]

I'm here to bring you your May, 2024 South Florida Housing Market Update.

As always, for the purposes of these videos, we're going to be talking about single family homes only in Boca, Parkland and Coral Springs. That's where our team does the predominant amount of our business.

So we're talking single family only no condos, no townhouses. Those are definitely different markets. And we're not talking about anything

When we give you these stats, we're trying to give you the leading indicator showing you what happened last month in the market. So you know where the market is headed. Not where it's been.

A lot of times when you hear these stats from the media, they're talking about closed sales price, which is really indicative of what happened.

So we're trying to give you the leading indicators showing you what's going on right now. So, you know, the direction the market is headed again, not where it's been.

So let's get into it.

The first stat we like to look at is the number of new listings hitting the market.

That would really be the supply and that varies by city, but it's up last year, up only 1% in Parkland. It's up 60% in Coral Springs, so depending on the city, supply can vary greatly.

What we're kind of seeing in Parkland, which is generally, the Parkland starts at a higher price. Boca's a bigger city, so there's bigger variation.

Parkland starts at a higher price.

These more expensive properties, if you're locked in to a 2.5% or that lock in effect, because to get more space to upgrade your house, You're really going to feel the difference in your payment there.

So we're not seeing as much inventory hit the market in Parkland compared to some of the other cities around there.

The next stat we like to look at is the Pending Sales.

This is really the demand in the market.

How many homes went under contract to be sold in the previous month? And that's pretty consistent across all three cities. That's down on average, about 6%.

So depending on the city, a lot more supply demand is only down about It's really not that much. So there's still a lot of demand in this market.

It's not like home sales have fallen off a cliff and nothing selling. We're very much pretty neutral from where we were last year.

The next step we like to look at is the number of days on market.

So how long did it take for the average home to sell?

And that is exactly the same as it was last year across all three cities on average, we're about 25 days.

So give or take one month to sell a house right now. That's a lot longer than we saw during the craziness of the pandemic, but very, very normal.

Buyers still have a decent amount of time to go out and shop around for houses without feeling super, super rushed, but the good properties that are priced correctly, they're fully updated in great neighborhoods, great locations.

Those are still selling a lot quicker than those 25 days.

So if you're looking for that turnkey, fully updated product and property, you're going to have to move quickly on that when you do see it.

The next stat we like to look at is the closed price to the original list price.

So I like to use original list price, but that takes into consideration price reductions.

Right now we're at 96% on average across all three cities. It's pretty similar. So across all three cities, about Of their asking price that is up compared to last year up 1%.

So this is the clearest indication to me that prices really aren't falling in our area. Sellers are just getting a little bit more realistic with their prices. Prices aren't coming down, but sellers just aren't starting up here knowing that their property is going to sell for down here.

They're being more realistic and pricing it accurately.

The next stat we like to look at is arguably the most important. This is the month's supply of inventory.

What this tells me is, are we in a buyer's market or a seller's market?

This stat shows if no more homes were to hit the market at the current pace of sales, how long would it take for all the properties on the market to sell?

Right now, Boca is at 3. Definitely still a seller's market. A seller's market is anything six months or less. A buyer's market is six months or more.

So at 3.

While this is higher than what we saw during the craziness of the pandemic, and it's the highest we've seen in a while, that is still definitely a seller's market, but closer to a more neutral market than we've seen.

Parkland is still at only 0. So definitely a still a seller's market there.

Again, you know, people are really feeling the lock in effect. There's not a lot of new listings hitting the market in Parkland. It's not flooding with inventory the way a lot of the other cities are in comparison.

Coral Springs is the next one. That was 2.

So again, that's higher than we've seen in a while.

But we're still back to give or take pre COVID level. So this crazy flooded inventory where everything's for sale, there's a lot more to choose from, but it's not this ridiculous buyer's market where people are giving properties away.

So location, location, location. Those are the three key words in real estate.

Florida has a lot of inventory on the market. It's leading the nation as far as the number of the increase in inventory.

But the main area that you see, if you were to look on a map of where that inventory is and where it's going up the fastest, it's on the West coast near Cape Coral and Fort Myers where that last hurricane hit.

So that market has about eight plus months of inventory in it. So that's a wildly different market than what we're seeing in our area in Southeast Florida, or maybe in Orlando or Tampa.

It's all about location.

So if you hear people saying, oh, there's so much inventory flooding the market in Florida, make sure you're wondering, you're asking, where is that inventory? Because it's not here in Southeast Florida.

Condos are up significantly. So we don't normally talk about condos a lot. We don't make it a huge part of our business.

Although we do sell a lot of condos, it's not the bulk of what we do, but condo inventory has really, really increased over the last year and that's really because of the new condo laws that are taking place.

That really kick in at the end of this year, there are a ton of massive special assessments and sellers in a lot of cases just can't afford to make the payments on that. And they're being forced to sell.

So if you own a condo, it's a wildly different market than what we have here for single families. If you're seeing that you're getting. You know, big special assessments.

You're not the only one in that building and there's going to be a lot of people who are trying to get ahead of that and sell their property.

If you have questions about any of this, we would love to be a resource for you, whether you just have questions or if you're looking to buy or sell a home here in South Florida.

Remember we got your back when you're moving down here.