As we start off the new year, the south Florida real estate market conditions in January 2023 reveal an interesting and continuing trend. In this blog, we’ll summarize the month that was, more specifically, in Palm Beach County, Martin County, and St. Lucie County.
In Palm Beach County, there was a decrease of 33.2% in closed sales, but the median sale price increased by 10.6%. The original list price received decreased by 6.0%, and the median days to contract increased by 173.3%. Inventory increased by 143.3%, and the months of supply of inventory increased by 209.1%. For townhouses and condos, there was a decrease of 38.2% in closed sales, but the median sale price increased by 12.8%. The original list price received decreased by 4.7%, and the median days to contract increased by 114.3%. Inventory increased by 142.9%, and the months of supply of inventory increased by 250.0%.
In Martin County, there was a decrease of 20.4% in closed sales, but the median sale price increased by 9.7%. The original list price received decreased by 4.4%, and the median days to contract increased by 184.6%. Inventory increased by 248.7%, and the months of supply of inventory increased by 371.4%. For townhouses and condos, there was a decrease of 43.8% in closed sales, but the median sale price increased by 26.0%. The original list price received decreased by 6.2%, and the median days to contract increased by 430.0%. Inventory increased by 222.6%, and the months of supply of inventory increased by 325.0%.
In St. Lucie County, there was a decrease of 27.0% in closed sales, but the median sale price increased by 4.9%. The original list price received decreased by 5.6%, and the median days to contract increased by 253.8%. Inventory increased by 188.2%, and the months of supply of inventory increased by 220.0%. For townhouses and condos, there was a decrease of 42.3% in closed sales, but the median sale price increased by 5.1%. The original list price received decreased by 3.1%, and the median days to contract increased by 86.4%. Inventory increased by 167.6%, and the months of supply of inventory increased by 290.0%.
In conclusion, while there is a significant decrease in closed sales YoY, it appears that the slowing median sale price increases and the increasing months of supply indicate a further shift towards a more balanced market. Months' Supply of Inventory is a useful indicator of market conditions with the benchmark for a balanced market (favoring neither buyer nor seller) is around 5.5 months of inventory. Anything higher is traditionally a buyer’s market, and anything lower is a seller's market. In Palm Beach, the current months of supply for single-family homes is 3.4 months vs 1.1 months in January 2022. The Martin County supply is 3.3 vs. 0.7 and in St Lucie County, the current supply is 3.2 months vs. 1.0 in January 2022. This will continue to present an opportunity for buyers to have more options available to them and sellers who want to capitalize on a still active market. It will be interesting to see how the market continues to evolve in the coming months.