South Florida Housing Market Update [April 2023]

Is the housing market in South Florida cooling down, speeding up, or is it crashing? Let's find out.

Hey, it's Andy with the Mandel team at Remax, and I'm here to bring you your April 2023 Housing Market Update.

As always, for the purposes of these videos, we're gonna be talking about single family homes only in Boca, Parkland and Coral Springs. Those are the areas where our team does the predominant amount of our business.

And when we talk about these stats, we're trying to give you the leading indicators of where the real estate market is headed, not where it's been.

So I'm trying to show you what happened in the last 30 days, not what you're hearing in the media.

A lot of times they like to talk about closed sales prices, which is really indicative of what happened sometimes 60, even 90 days ago.

That's not what's happening right now.

So let's talk about what is happening today.

So the first stat we like to look at is the number of new listings that we're seeing.

So in the month of March 2023, compared to March 2022, new listings hitting the market, the supply is down 25.4%. So we're seeing fewer homes hit the market.

This is a trend that we've been seeing recently.

You know, we saw inventory tick up, but now we're seeing it come back down.

A lot of people refinance. Most people refinance. So why would you trade in your 2.75%, 3% rate for today's rates if you don't absolutely have to.

And that's what's happening.

We're seeing fewer listings hit the market, creating that shortage of supply that we've all gotten used to over the last couple years. At the same time, the number of homes pending and coming off the market is also down 22%.

So fewer homes hitting the market, fewer homes selling.

So there are fewer buyers who wanna buy with these rates than in this market right now, but we're seeing new listings down more, and supply is down more than demand.

So if supply is down more than demand, that typically leads to an increase in prices.

The next thing we're looking at is the number of days on market.

How long is it taking, for a home once it's listed, to go under contract?

Last month, that was 31 days. That's up 338% from this time last year. Last year it was just seven days. So homes are taking a lot longer to sell on average. 

But the good priced homes, the ones that are in good neighborhoods, they're updated. They're priced correctly. Those are still selling, and we're seeing it with multiple offers on our listings in a matter of days.

So good listings are still flying off the market, but in general, homes are taking a little bit longer to sell.

Now, the next stat we like to look at is the close price to the original list price.

So this is to be fair, a backward-looking stat, but I think it's important for everyone to know.

The close price to list price last month was 94.2%, so there are sellers who are negotiating off their price.

A lot of buyers are getting a discount from the original price that takes into consideration price reductions, and things like that of sellers who started way too high and had to come down and reduce.

Last year round this time, that was 100.7%.

The last stat we like to look at is the number of months supply of inventory.

Now, I think this is the most important stat.

This tells us whether we're in a buyer's market, or a seller's market. So anything less than six months of homes says that we are in a seller's market. Anything more is a buyer's market.

Right now, we have on average between Boca, Parkland and Coral Springs, 2.58 months. It's much higher in Boca, much lower in Parkland.

So depending on where you're looking, could greatly determine, you know, how much wiggle room you have on these prices. But 2.58 months is still on paper, a seller's market.

When we were in the height of Covid, we were seeing roughly one month of inventory. So we're two and a half times more inventory closer to a buyer's market than we were in 2021. But still very, very much a seller's market because there's just not a lot for sale.

So what does this mean?

If you're a buyer you just gotta know the good priced homes are still selling quickly. You gotta be ready.

If you see a home that's fully updated, it's in a good school district, it's got a newer roof or impact windows. All those things that you know most buyers are gonna be wanting, those homes are likely gonna go very quickly, if they're priced and marketed correctly.

So you still have to have all your ducks in a row. Still gotta get pre-approved, be able to write strong offers, ‘cause the market is way more competitive for good homes thank you might be led to believe by the national media.

For a seller, what does this mean for you?

All you gotta do is price your home correctly and you're still gonna be able to sell, likely with multiple offers. Doesn't even matter what the condition is. I'm seeing homes that are still needing a lot of work. Granted, they are harder to sell. There are fewer buyers but if were priced correctly to factor in the work that needs to get done, those homes are still selling and they're getting multiple offers.

So just gotta know if you price your home correctly and you work with the right agent, who's able to market your property the way that we need to be marketing it in 2023, all over the internet making you look great, you're still gonna be able to sell and likely for a very good price.

Prices have come down a little bit from last year's highs, but as long as you're priced in line with the market and you're not trying to take last year's highs and go a little bit higher, you're still likely gonna be able to sell.

So there are some price reductions for homes that are sitting on the market a long time, and those owners started way too high. But you're gonna be able to sell for a price that I'm Sure you're gonna be very happy with if you're a serious seller.

So that's it for our housing market update for the month of April 2023.

If you have any questions on how this affects you as either a buyer or you're looking to make a move to South Florida, either or you're already in South Florida or you're relocating to South Florida, make sure you subscribe to our channel.

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