Sales of residential properties in South Florida dropped again in Q1 2023 as the number of listed homes increased, though still remaining below the pre-pandemic level.
The only market where sales rose was Palm Beach County, specifically, three towns on the ocean coast: Manalapan, Hypoluxo Island, and Ocean Ridge, according to a report by Douglas Elliman for the first quarter of the current year. The reason for this outlier is probably the small size of the market where literally every extra transaction can greatly affect the final performance. Sales of single-family houses in this area surged by 36% year-on-year in Q1 as 15 properties changed hands.
Housing sales in all other parts of South Florida reduced compared to last year. Jonathan Miller, who prepares reports for Douglas Elliman, notes that the number of transactions also dropped below the pre-pandemic level. In his opinion, the reason is not only the double mortgage interest rates but also the chronically low number of listed properties: the inventory is 30-60% lower than in the same period of 2020 and earlier.
Mr. Miller quoted Boca Raton as an example. Sales of condominiums and single-family houses in this city grew by over 100% compared to Q1 2022 but remained considerably lower than in the same period of 2020.
Buyers still compete with each other for homes, but the number of properties sold above the asking price reduced in the first quarter. On the contrary, South Florida sellers give discounts more often, according to the report.
Mr. Miller warns that the sales in the first quarter of the current year should not be directly compared to the last year, when interest rates were still within 3%.