August Highlights
- Mortgage rates stayed between 7% and right under 7.5% during the month of August. Given current economic conditions & performance, many experts do not believe rates will decline anytime soon. In fact, they could go up even more as the year comes to a close. Also, while not directly tied to mortgage rates, many believe the Federal Reserve will increase rates one more time in November.
- Serious buyers who are ready to purchase need to be prepared with updated preapprovals and informed of their mortgage options so they can successfully purchase a home in this market.
- In South Florida, the number of homes sold is down, with Palm Beach condos & townhomes the only exception, when compared to the same time last year as many buyers continue to struggle with affordability constraints.
- Additionally, the number of homes listed is also down year over year as would-be sellers are hesitating to put their homes on the market to avoid entering the market with current mortgage rates.
- Consequently, the available inventory of homes for sale is tight and struggling to meet the demand in the market, and there is an even higher demand for homes in South Florida. Specific groups of people that want to relocate to a Sun Belt state such as cash buyers, overseas buyers/investors, snowbirds, retirees, etc. put an additional strain on South Florida inventory levels.
- There are some sellers who can no longer delay putting their home on the market due to changes in life circumstances such as divorce or a growing family. In this case, pricing your home competitively will be crucial to attract the most buyers. The more demand you create for your home, the more negotiating power you have – especially if you are buying and selling at the same time.
- Average sales price is up in August when compared to the same time last year. Typically, a low supply, high demand situation would lead to a larger in prices. However, other economic factors such as inflation and increased mortgage rates are altering the scenario by keeping overall consumer affordability diminished which, in turn, will keep housing prices from soaring uncontrollably.
SOUTH FLORIDA
Broward County
In August of 2023, Broward County single-family homes and condos/townhomes saw decreases in most categories, except the average price for single families rose 7.2% compared to August 2022.
Miami-Dade County
In August of 2023, Miami-Dade single-family homes and condos/townhomes saw decreases in closed sales, pending sales and new listings. Average price was up for both single families and condos/townhomes.
Palm Beach County
In August of 2023, Palm Beach single-family homes and condos/townhomes both saw a decrease in new listings and pending sales. Single families saw a decrease in closed sales, and condos/townhouses saw an increase in closed sales. Average price was up for single families and condos/townhomes.
Data provided by SunStats then compared to the prior year.