By Michael Citron
What Happened to Parkland Real Estate in 2023?
Average Days on the Market
A significant change in 2023 was the increase in the average days on the market for homes. While in 2022, homes took only 31 days to be listed and go under contract, the number rose to 49 days in 2023 – a substantial 37% increase in days on the market. This shift can be attributed to increased listings and buyers adopting a more selective approach due to fluctuating interest rates.
Median Sales Price
Despite facing challenges such as rising interest rates, homeowners insurance hikes, and low inventory, Parkland showcased a robust market. The median sales price for homes in Parkland increased by 2.3%, ending the year at $1,113,750 – a healthy appreciation considering the volatile conditions in the mortgage and real estate market.
Parkland experienced a modest 2% decrease in single-family home sales, with 552 transactions in 2023 compared to 561 in 2022. Even with low inventory levels, buyers continued to invest in Parkland real estate, proving the sustained demand in the market.
List Price to Sales Price Ratio
The list-to-sales price ratio in 2023 was 96%, a 2% decrease from the previous year, ending at 98%. This minor decrease, especially for higher-priced homes, indicates that properties sold for approximately $20,000 to $25,000 less than in 2022.
Team Cash Sales and Market Shifts
Cash sales, a trend prevalent in recent years, saw a slight decrease from 30.1% in 2022 to just under 30% in 2023. With lower interest rates on the horizon, the market may witness more mortgage buyers entering, taking advantage of favorable conditions.
As the #1 Realtor in Parkland and among the Top 5 Realtors in Broward County, we represented more than 10% of sellers in the City of Parkland and sold their homes for 98% of the original list price, 2% higher than the average Parkland realtor. We sold $140 Million in real estate transactions and helped 154 families in their real estate journey.
Prediction 1: Will There Be More Housing Inventory?
The ebb and flow of housing inventory is a crucial factor influencing the real estate market. Anticipating a temporary increase in inventory as sellers react to lowering interest rates, we might witness a surge in homes hitting the market. However, the demand is expected to outpace supply, ultimately maintaining a competitive market.
Prediction 2: Will Home Prices Go Down?
Contrary to fears of a decline, the prediction is for home prices to remain stable and even experience a modest, healthy increase. With interest rates at roughly 6.5%, the prospect of the Federal Reserve lowering rates further might entice both buyers and sellers into the market, contributing to an increase in property values.
Prediction 3: Will 2024 be a Buyer or Seller’s Market?
The market is leaning towards a seller’s advantage, and this trend is expected to strengthen throughout the year. Despite lower inventory levels compared to pre-pandemic times, the possibility of further dwindling supply may intensify competition among buyers, making it more challenging for those on the lookout.
Prediction 4: Should I buy now or keep waiting?
The age-old question of whether it’s the right time to buy persists. As predictions indicate a decrease in inventory and an increase in demand, prospective buyers are advised to act sooner rather than later. The market dynamics, including lower interest rates, may result in increased competition, making it imperative for buyers to seize opportunities promptly.
Prediction 5: Will The Market Crash?
Dispelling concerns of a housing crash, the real estate market in South Florida appears resilient. The presence of substantial equity among property owners, coupled with a robust job market, minimizes the risk of forced sales or foreclosures. While the commercial real estate sector may face challenges, the overall housing market is expected to remain stable.
If you’d like to contact me directly and book a buyer or seller consultation, please feel free to schedule an appointment with me at https://www.calendly.com/parrotrealty. You can also reach me by phone at 954-609-0591 or email me at Michael@ParklandParrot.com.
Buy & Sell With Confidence!
Michael Citron – Owner & Realtor of Parrot Realty