South Florida Real Estate Market Report
How's the South Florida real estate market?
As we enter 2021, we’re taking a moment to reflect on a quarter that closed out one of the most unique years of our lives.
Last year taught us that home is so much more than the place where you sleep at night. As the lines in our lives began to blur, so did the way we experienced home. A formal dining table that was once merely for show moonlighted as our childrens’ desks as they navigated a new world of virtual learning. Kitchens previously used for an occasional dinner were enhanced with new gadgets and recipe books, as millions of US residents tried their hands at bread-making, cocktail-mixing, and getting that restaurant-worthy recipe “just right”. Living rooms mirrored nights at the theatre, with the latest movies only a click away and home-popped popcorn in hand, while pool decks and terraces rejuvenated our love-hate relationship with fitness. For many of us, the way we lived, worked, learned, and spent time with one another meant that our homes no longer served us in the way we needed. These lifestyle changes shifted priorities, priorities shifted needs, and needs drove change. It is no surprise that despite a near standstill brought on by COVID-19 within the real estate space, 15.9 million people moved between February and July alone (move.org), and 35% of people who moved said that buying a home was a factor (move.org).
At a macro level, the South Florida real estate market showed extreme resilience in this initial COVID-19 recovery, as intra-state and inter-state demand surged with buyers and sellers looking to make changes to their living situations. Throughout Q4 2020, home sales continued to rise, with prices trending upwards and shrinking available inventory. While in Q3 we saw an excess of available condo inventory, as buyers sought out more space and privacy in reaction to the spring’s shelter-in-place orders, Q4 brought a shift to condo-buyers seeking a good deal or investment opportunity. At this point, 69% of the neighborhoods we analyzed presented a seller’s market within the condo space, which was a 17% increase from Q3.
The unique and ever-changing market conditions add a second layer of complexity to the home buying and selling experience, creating a clear need to have readily-available market data and an expert real estate agent at your side. While buyers may have a wish list in hand, they are navigating a landscape where speed, accuracy, and tradeoffs are critical; lagging market prices put appraisals at risk, offer structures are paramount, and laser focus on location and features may require paying a premium. Despite low inventory and a clear seller’s market in most neighborhoods, rapidly changing environments and uncertainty around COVID vaccinations mean sellers are gauging whether they should wait to sell or sell now and take advantage of the market. If the latter, sellers need to make decisions around timelines and how to navigate showing their home.
To best prepare for the market conditions and opportunities to come in 2021, buyers can set themselves up for success by working with their agent to get up to speed on the market and identify exactly what they’re looking for. Serious buyers should plan to be pre-approved for a mortgage and ready to visit new listings as soon as possible. On the listing side, sellers can prepare by getting their homes in top shape prior to hitting the market and consulting with one of our knowledgeable real estate advisors. Many of today’s buyers want move in-ready conditions. Utilizing Compass Concierge in the pre-listing period can set sellers up to receive favorable offers by making the buyer-friendly upgrades that will most impact their bottom line when they hit the spring market.
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
Like many other Florida markets, Palm Beach County benefitted from a strong bounce back after the initial market decline due to COVID-19, historically low interest rates, and a desire for more space and sunshine. This quarter, overall inventory was down 24.5% and new listings down .9%, which drove the average price per square foot up by 38.7% and the median sold price to $350k. The increase in price per square foot was largely felt across all individual cities, but was especially noticeable on the island of Palm Beach, where the average price per square foot for single-family homes doubled (currently $2k/sf) and in Wellington, where the cost increased 71.8% to $389/sf. Drilling into different pricing segments, demand for single-family homes over $5M continues to be at an all-time high, with an astounding 331.8% increase in sold Ls. A 276.7% increase in pended sales shows that this trend may continue, though inventory is slowly dwindling, with a 26.4% decrease. Homes in the $250-400k range, however, have significantly less movement. While for sale inventory has dropped by 48.9%, sold inventory remains nearly stagnant, with a .5% increase YoY. On the condo front, waterfront condos in Palm Beach County are steadily increasing in median price ($270k) – a 2.6% increase YoY, though overall the condo market is relatively balanced, with four months of inventory currently available.
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 42.5% from the 4th quarter of 2019, while condominium inventory remained fairly steady year-over-year with only a 1% increase. The average price per square foot in Boca Raton single family homes increased by over 21.9% to $312/square foot from the same quarter last year. The lack of supply and high demand for single family homes led to a 34.7% increase in the median list price which equated to $971,000. Boca Raton's real estate market remains as of now a strong seller's market.
Boynton Beach Real Estate Market
Delray Beach Real Estate Market
Highland Beach Real Estate Market
More information about South Florida Real Estate
For more information about South Florida real estate, please visit https://www.pearlantonacci.com which is offers updated information on Boca Raton, Delray Beach, Boynton Beach, and Highland Beach real estate listings, community information, and much more.
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.