South Florida Real Estate Market Report
How's the South Florida real estate market?
The COVID-19 pandemic has altered the way we live, work, socialize, and shop, but Florida real estate remains resilient as buyers look for more space and good deals. While Q3 is typically a slower market, the desire for more space and the pause in closing activity in April caused pent-up demand. In higher price ranges, including the ultra-luxury sector, little inventory has been left on the table. Across the state, months of single-family-home inventory, based on closed sales, was down year-over-year to 36.1% in Palm Beach County. Think about that for a minute; there are 36% fewer homes available on the market in 2020 than there were one year ago in 2019. This has led to multiple offer situations with bidding wars and disappointed buyers, as well as frustrated real estate agents who aren't able to find their clients homes to buy. This also presents a unique and potentially profitable situation for home sellers when you think about it from a simple supply and demand perspective. Just this quarter, The Pearl Antonacci Group has sold three of their listings for more money than they were listed for, and both were listed at record-breaking high prices!
As we are now entering Q4, we are beginning to see more of a demand for condos, but last quarter the demand for condos fluctuated greatly depending on location. In places like Miami where condos are typically smaller, there is a clear buyer’s market with 11.8 months worth of inventory available. Overall, Q3 activity was up compared to the height of the COVID-19 pandemic, a testament to the industry’s resilience as many agents adapted modern tools and technology to best service their clients. For buyers today, there are still opportunities to purchase homes that may not have been financially available before, while the long-term future is less clear as the shrinking inventory is beginning to cause climbing prices, despite historically low mortgage rates. For sellers, it is now time to capitalize on investments prior to further changes in the market and take advantage of the increased demand by placing homes on the market positioned to sell. Now more than ever, we are seeing that accurately priced homes are receiving multiple offers while homes that are not priced accurately sit on the market waiting for a buyer. All of these cases stress the importance of working with quality agents who deeply understand the market and have access to the latest technology.
The team at Compass has spent the last seven months since the onset of COVID-19 developing new tools and strategies to better serve our communities and agents. With over 1,000 highly-skilled real estate professionals across the state, we are committed to providing a seamless process every step of the way, no matter what challenges emerge. We hope this report—which outlines real estate trends across 68 of our regions’ neighborhoods—provides you with valuable information and insights for your real estate journey.
Compass Real Estate Agents Market Survey
At Compass, our mission is to help everyone find their place in the world. We draw inspiration and invigoration not from a simple real estate transaction, but from what it means to help a family settle into the perfect home, a place ideally suited for your needs, wants, goals, and lifestyle. No one honors this journey quite like the agents of Compass; in the sea of emotional variables that come with buying or selling a home, a Compass agent is your constant. We turned to our expert South Florida Realtors to see what trends they have been seeing, from the average number of offers received on their last listing to their typical clients’ wishes and urgency. When you’re ready to buy or sell, they will help you find not just a home, but the perfect cornerstone of your life.
Source: Compass FL Agent Survey (October, 2020)
Palm Beach County Real Estate Market
Palm Beach County boasted a healthy market in Q3, with a 13.6% increase in new listings and a tremendous 43.4% uptick for new luxury listings over $1 Million. Despite the increase in new inventory, total inventory is down by 12% year-over-year (YoY), largely due to continued pent-up demand that is driving up median sales prices by 13% year-over-year (YoY), leaving a current median price of $322,000. Palm Beach County remains a strong seller’s market across both single-family homes and condos, with 3.6 months of inventory as sales have surged by 12.3%. Notably, condo sales increased by 9.5% - a unique trend compared to all other metros in South Florida where condo sales are down in favor of single-family homes. The combination of trends in Palm Beach shows that we are likely headed into a uniquely busy Q4 season as buyers continue to take advantage of low interest rates.
Boca Raton Real Estate Market
The Boca Raton real estate market was also incredibly healthy and robust with record-breaking sales prices, low inventory, and very few days on the market. The single-family home inventory was down over 42% from the 3rd quarter of 2019, while condominium inventory stayed steady year-over-year. Even during these trying times, the average price per square foot in Boca Raton increased over 20% to $297/square foot from last year. The lack of supply and pent-up demand led to a 37.15% increase in the median list price for single family homes in the 3rd quarter of 2020. Boca Raton's real estate market remains as of now a strong seller's market.
Delray Beach Real Estate Market
Delray Beach's real estate market has been similar to that of its neighboring community Boca Raton. A 40% reduction in single-family home inventory led to increasing demand for the limited Delray Beach homes for sale. Delray Beach condo inventory took a larger dip than Boca Raton condos for sale. Delray Beach condos for sale took a 16% reduction in the inventory from this time last year. Delray Beach homes also increased in their price per square foot by 23% which was very similar to Boca Raton's data. Delray Beach single-family home prices (median list price) increased by 29% while condominiums only increased by 8.61% from last year. Based on the Market Action Index, reported by Altos Research, the Delray Beach single-family home market is now a buyer's market, while the condo market remains in favor of sellers.
More information about South Florida Real Estate
For more information about South Florida real estate, please visit https://www.pearlantonacci.com/market-reports.php which is offers updated information on Boca Raton, Delray Beach, Boynton Beach, and Highland Beach real estate market information. The data is updated weekly and you can subscribe by completing the form below or calling us anytime.
About The Pearl Antonacci Group
The Pearl Antonacci Group is a top-producing South Florida real estate team, that specializes in luxury, waterfront homes from Hillsboro Beach to Manalapan. With over 50 years of combined professional experience and hundreds of successful transactions, Brian Pearl and Vini Antonacci have been recognized as consistent leaders in the real estate industry, both locally and nationally. The team sells in excess of $30 million annually with lifetime sales of more than 1/2 billion dollars, ranking them in the top half of the top one-percent of Realtors nationwide. Together with Vini’s years of experience and Brian’s business acumen, they offer the best of both worlds to their clients. The Pearl Antonacci Group utilizes superior marketing materials for both print and online advertising, such as professional photography, state-of-the-art HD videos and virtual tours. The Pearl Antonacci Group understands that your home is your most important asset. With their unparalleled experience and level of service, they are committed to their clients and turning their dreams into reality. If you are buying or selling real estate in South Florida, contact The Pearl Antonacci Group today and let them show you HOME. Click here to learn more about the team and their agents.
About Compass Real Estate
Founded in 2012, Compass pairs best-in-class agents with cutting-edge technology and unparalleled marketing, becoming the country’s largest independent brokerage in six years. This innovative approach has secured $15 billion in capital from some of the world’s most prominent investors, including SoftBank, Fidelity, and Ken Chenault, CEO of American Express, allowing for the development of transformative tools and recruitment of top talent across every discipline to build a once-in-a-generation company. Compass takes a tech-driven, personalized approach to real estate by combining a collaborative agent community, in-house marketing strategy and design, and the industry’s most tenured leadership team.