The summer real estate market in many regions of the country typically has a slow down by comparison to spring. This year South Florida had seen a slight dip in the number of transactions in July although the softer month didn’t hurt prices.
According to the Realtors Association of the Palm Beaches, Palm Beach County had a slight dip in single family home sales by 15% compared to July of 2015. The Greater Fort Lauderdale Realtors shared that Broward County also had a slight dip by 11% when compared to this time last year and Miami Dade County had a 16% decrease according to the Miami Association of Realtors.
Despite the slight percentage change home values have remained steady for July. In fact, the median price increased between 3% and 8% in the tri-county areas.
The shortage of inventory levels continues especially in Broward County. The supply shortage is measured at being down 12% in July compared with July of 2015.
The lack of homes that are available for sale could be playing a role in the slight dip we are experiencing in the number of monthly sales.
So what does this mean as we are entering fall market? It does remain to be seen. With an election coming up we can anticipate that there could be a small hiccup towards the end of the year. However, we cannot overlook that employment has been strong with more jobs being created at faster rates this past summer. In addition, mortgage rates have still been consistently hovering at extreme lows around 3.5% for an average 30 year fixed loan.
The low rates will continue to create a sense of urgency that buyers will want to take advantage of. For others, life changes and the need to move will always be there – and with fall market, many are eager to get their transaction complete and get settled before the holiday season.