Though typically not a busy time in the South Florida market, the 2021 summer season has kept the momentum going from the beginning of this year. In fact, national statistics stemming from the week leading up to the 4th of July indicate that housing is still a hot commodity across the nation!
However, there were signs indicating some relief may be within sight, though buyers shouldn’t celebrate quite yet, as the data discrepancies could be attributed to the lead up to the holiday weekend.
Overall, the data demonstrates more of the same—fewer new listings, and historically high home price growth. Both of these aspects mean a tough environment for buyers without the ability to offer top dollar or make a quick purchase decision. However, there are signs that things may soon be changing, as the pace of home price growth does appear to be slowing somewhat.
Has The Seller’s Market Run Out Of Steam?
It’s certainly too early to call this a pivot toward a buyer’s market, but signs of a shift are slowly revealing themselves just in time for the typical fall lull in prices. Here are some of the most pertinent metrics buyers and sellers should note:
For the 47th-straight week, median listing prices showed double-digit increases (10.1%) over the same time period last year. However, single-digit increases appear right around the corner, so while this remains higher than a typical year-over-year change, things may soon return closer to “normal.” Off-season buyers may find opportunities soon.
Median home listings across the US hit another price record (the fifth such instance in a row), rising to $385,000.
Are There Any Homes To Buy?
New listings slipped 3% compared to the previous year in the week leading up to the July 4th weekend. However, the number of new listings have continued to increase slightly compared to 2020 in 13 consecutive weeks weeks indicating more inventory, and likely contributing to the slowing in price growth.
Total active inventory is still down in comparison to the previous year—but not by nearly as much. Though the market overall is short in terms of availability, this is yet another small crack in the current seller’s market.
When Will South Florida Home Buyers Have The Power?
Typically this is the time of year when time on market tends to lengthen. In this instance, 2021 has not been an exception. Nationwide, the typical listing was still only active for 37 days this past June, but the gap in the difference between this and last year is shrinking more and more quickly. In fact, this was the third consecutive week in which it has shrunk. If 2021 demonstrates normal seasonal variances—and with the advent of vaccines and people’s comfort level with the pandemic both indicating we’re on the right track—then buyers could have their day before the end of the year.
Outside of the hard numbers lie other hints. Google reports that the number of searches for “Real Estate” has fallen under 2019 levels for the first time all year, and Redfin has reported that new mortgage applications have matched their lowest levels since May of 2020. It all means the wild west days of seemingly-instant top-dollar offers could go the way of the horse and buggy sooner rather than later.
If you’re considering buying or selling in Boca Raton or Delray Beach, then you can’t afford not to have an experienced local real estate agent on your side. The Pearl Antonacci Group is here to guide you on your journey. Contact us today!