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DRAMATIC DROP: New Housing Contracts In Palm Beach County Plummet

Florida News Palm Beach County

But DouglasElliman Says It’s Not A Disaster. It’s A Supply Problem.

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BY: STAFF REPORT | BocaNewsNow.com

BOCA RATON, FL (BocaNewsNow.com) (Copyright © 2022 MetroDesk Media, LLC) — The number of newly signed housing sale contracts plummeted for homes valued under $500,000 in Palm Beach County during January. But it’s not necessarily a sign of doom and gloom. The latest report from DouglasElliman, prepared by Miller Samuel Real Estate Appraisers and Consultants, suggests the true issue is a lack of inventory.

Simply put: there aren’t contracts to sign if there aren’t homes to buy.

By the numbers, looking at January 2022 versus January 2021, newly signed contracts for homes valued under $300,000 dropped 53.2 percent. In the $400k to $499k range, contracts dropped 13.5 percent. In the $400k to $499k range, newly signed contracts dropped 30.5 percent.

The number of new contracts signed for homes in the $500k to $999k range rose 2.7 percent. Contracts for homes in the $1M to $2.99 range rose 15.4 percent year over year, and the $3M to $4.99M range rose 40 percent. For those buying or selling in the $5M to $9.99M range, there’s no problem at all. New contracts rose 75 percent.

Numbers also suggest that it’s easy to blame a lack of inventory for dips in newly signed contracts. Again, comparing January 2022 with January 2021: new listings in the under $300k category dropped 34.5 percent. New listings in the $300k to $399k range dropped 48.6 percent.

New listings in the $400k to $499k range dropped 58.4 percent. New listings the $500k to $999k range dropped 37.9 percent. New listings in the $1M to $2.99 range dropped 10.2 percent. And new listings in the $3M to $4.99M range dropped 24.1 percent. Again, this is comparing January, 2022 numbers with January, 2021.

Condos, however, have shown year over year gains in ten of the past twelve months, according to the report. That also suggests that the condo building collapse in Miami Beach had no impact — at all — on condo sales in the area.

 

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