In 2021, the real estate market in the south of Florida was setting one record after another but over the past eight months of 2022, a certain slowdown began: the number of closed purchase and sale transactions reduced, interest rates rose, the time in the market grew, and bidding wars between buyers declined.
This, however, does not mean that the market is bound to crash. Roni Sterin from Keyes Company in Weston observes that a slowdown does not necessarily entail a crash. In her opinion, the market has made the necessary adjustment.
The year 2021 was actually an exception, so all indicators should be compared to the pre-pandemic year 2019. Bonnie Heatzig, Executive Director of Luxury Sales at Douglas Elliman in Boca Raton, believes that the changes in the market might seem intimidating out of context but the pendulum is simply returning to its normal position.
For instance, the median selling prices in the market are stabilizing. As of October this year, the median prices of single-family houses in Broward, Palm Beach, and Saint Lucy counties were still dozens of percent higher than in the same period last year. The prices, however, are slightly reducing compared to the previous month.
This is not a sign of a crash in the real estate market; it indicates the potential stabilization of home selling prices in South Florida in the nearest future.