South Florida Housing Market Update [August 2023]

Hey, it's Andy with the Mandel team at REMAX, and I'm here to bring you your August 2023 housing market update. As always, for the purposes of this video, 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 we're not talking about any country clubs or 55 and overs. When we give you these stats, we're giving you the leading indicators of what's going on in the real estate market now, so you know where the market is headed, not where it's been. Typically, when you see these stats from the mainstream media, they're talking about closed sales price, which is really indicative of what happened 30, 60, sometimes even 90 days ago. We're telling you what's going on this month so you know where the market is headed, not where it's been.

So let's get into it. The first stat we like to look at is the number of new listings hitting the market. That's the supply that's down 35% compared to this same time last year. At the same time, the number of homes going pending and coming off the market. The demand that's down, but only 5%. So we have 5% fewer homes selling, but 35% fewer listings. So supply is down. Way more than demand, even with fewer buyers are able to qualify or wanting to buy at these higher rates. The number of homes that are selling hasn't changed significantly, but the number of homes coming on the market has significantly dropped. So we have a huge supply and demand and balance way fewer homes for sale. Way more buyers looking to buy a home in today's market. Now, the next stat we like to look at is the days on market, and that's up 47% compared to this time last year.

So homes are taking longer to sell, but they are selling if they are priced correctly and in good condition. The next stat we like to look at is the closed price to list price ratio. So last month that was 95.9%, so just about 96% closed price to list price. That's down from 99% this time last year. So buyers are negotiating a slightly better deal than they were this time last year. The last stat we like to look at is the month's supply of inventory. So what this stat means is that if no more homes were to hit the market, how long would it take at the current pace of sales for all of the homes to go under contracts and sell anything less than five or six months is a seller's market. Anything more is a buyer's market. In between is obviously a neutral market.

Right now across all three cities, we're at 2.53 months of inventory, but that varies between cities. Boca has 3.37 months of inventory. Parkland is just 0.19 months of inventory, so that's less than one week of inventory at the current pace of sales. Coral Springs 1.71 months of inventory, so still less than two months. We are in a seller's market across all of these cities, definitely more so in Parkland and Coral Springs. What we're really seeing in our business is that homes that are priced correctly, pricing still matters, even though it's a seller's market. Sometimes you'll see homes that sell in one second, and then you see a lot of homes that are just sitting on the market for ninety, a hundred twenty, two hundred fifty days. Those are the homes

That overpriced to begin with. Those sellers are still thinking that, you know, it's 2021, they could ask whatever price they want and that's just not the market that we're in. Homes are still selling and they're still selling for unbelievable prices. Prices haven't come down that much, but you can't just pick whatever price you want and you know, ask for. It still has to be in line with where the appraisals are coming in at. I'm seeing way fewer buyers willing to pay above appraised value. Doesn't mean it's not happening, but way fewer buyers are willing to do it the way they were in 2021. So homes have to be priced accordingly to where you know it's going to appraise picking whatever price you want because that's the price you want as a seller. Just doesn't work in this market. But when the homes are priced correctly, they're selling with multiple offers, still potentially bidding the price up, and that's really the best strategy that we tell our sellers and we inform our buyers that, hey, let's look at the home.

If it's priced correctly, you still have to make a very aggressive offer. If it's, you know, a good home, it's fully updated or it's priced correctly. Even the homes that aren't fully updated. I had a buyer who recently missed out on a what would be a huge fixer upper project, probably 150 if not $200,000 in upgrades is what this home needs. 'cause it's basically original from 1968, but it's sold in one or two days above the asking price. So everything is still selling if it's priced correctly. So buyers, sellers, there's still a huge imbalance in supply and demand. This market is still really, really strong and it's not slowing down anytime soon. I don't take great pride in saying that. It's very frustrating for us as agents. I know it's frustrating for buyers. Anecdotally, I'm looking to upgrade and get more space from my house too, and I'm going through the same thing.

So trust me, I get it. It's a frustrating, challenging market. But we can help you. Remember, we got your back from moving in South Florida. If you're looking to buy or sell a house here or anywhere across the country here in South Florida, we can help you. If it's other parts of the state or other parts of the country, we have great realtors across the country we'd love to refer you to. Don't hesitate to reach out, give us a call, shoot us a text, or send us an email. We got your back. We're moving in South Florida.