Palm Beach County home sales slumped in July with fewer closed deals, stale pricing and a stubborn lack of choices for buyers.
At $600,000, July’s median sale price for an existing single-family home broke even with the same month last year, but was $25,000 less than the record high set in June, according to a report released Tuesday by the Broward, Palm Beaches and St. Lucie Realtors Group.
The number of closed sales in July of 1,164 was 2% lower than July 2022, and the supply of inventory was just 2.9 months. That’s the lowest amount of inventory since September of last year and far from the 5.5 to 6 months’ supply that is considered a balanced market where neither the buyer or seller has the advantage.
Realtors and economists said the lack of homes for sale is partly an issue of sellers not wanting to lose their low mortgage interest rates in favor of the current rate, which at 7.09% is the highest in more than 20 years. The last time an average 30-year fixed-rate mortgage was more than 7% was April 2002, when it was 7.13%, according to Freddie Mac.
Strategy and cash:Tips to buying a home in hot real estate market
At the same time, sellers may also be waiting for snowbirds to return.
“I have a few people who are ready to list their home for sale, but they are not going to do it until closer to season,” said Realtor Mae Ferguson, who is the founding agent and senior global real estate adviser for Sotheby’s West Palm Beach office. “It’s quiet now, and people don’t want it to look like their house has been sitting on the market a long time.”
Statewide, the median sale price for a single-family home last month was $415,000, about even with July 2022. The 22,198 deals that closed were down 6% from the previous July and inventory was at a 2.8 months’ supply.
Brad O’Connor, chief economist for Florida Realtors, said Palm Beach, Broward and Miami-Dade counties continue to struggle with affordability issues more so than many parts of the state.
“There are higher incomes in South Florida, but home prices are much higher,” O’Connor said. “There has been slower population growth in the tri-county area because there are people leaving who can’t afford to stay.”
Still, he noted that new residents from high-tax states, including New York, New Jersey and California, think Florida is “still a bargain.”
Just 41 Palm Beach County homes sold last month for under $250,000. The bulk of sales were between $400,000 and $1 million. About 245 homes sold for $1 million or higher.
Buy or rent?:Homebuying in Palm Beach County makes more financial sense than renting, but with caveats
“Sellers have to be reasonable in this market,” said Eric Sain, district sales manager for the Keyes Company, Palm Beach Gardens. “Buyers are paying higher fees and higher insurance rates, so they are looking for relief somewhere.”
Still, sellers aren’t being forced into bargain-basement deals. The online brokerage firm Redfin said about 23% of Palm Beach County home sellers dropped prices in June. That’s down from 30% in June 2022.
Palm Beach County’s condominium and townhome sales saw an 8% decline last month from July 2022 with 945 deals closing. The median price for a townhome or condominium was $315,000, which was an 8% increase from last year.
Kimberly Miller is a veteran journalist for The Palm Beach Post, part of the USA Today Network of Florida. She covers real estate and how growth affects South Florida’s environment. Subscribe to The Dirt for a weekly real estate roundup. If you have news tips, please send them to [email protected]. Help support our local journalism, subscribe today.