Where are All of the Houses?
What is happening with real estate?
People are wondering why the real estate market has changed so dramatically. The reason is simple...there are more buyers than there are homes for sale. Because there are many buyers that want each home that comes on the market in Palm Beach County, prices are being driven up dramatically.
Palm Beach County Housing Report
If we compare the number of homes before the pandemic to the past two years, it is easy to understand. The number of homes for sale in February 2020 was 6,282, but by February 2022, it had dropped to 1,777. That's a 71.7 % decrease in single family homes in Palm Beach County!
The lack of inventory has increased the Median Sales Price by 32.1% since February 2020. From $363,000 it went up to $535,000 this year.
What caused the shortage of inventory?
There are many reasons however here are a few:
Will this continue? There will be demand from local and out of state buyers for sometime. It is not hopeless if you are looking to buy. If you are planning to sell, the right marketing, pricing and negotiation strategies can allow you to benefit from the current market condition.