I wasn't joking when I headlined this post 'The Housing market - last Week'.
Because of the market volatility, I switched from quarterly data to weekly data to see trends faster. The numbers I'm analysing are in two groups:
- Inventory and sales of Single Family Homes in Palm Beach, Broward and Dade counties, with their list prices and selling prices.
- Inventory and sales of Condos and Townhomes in Palm Beach, Broward and Dade counties, with their list prices and selling prices.
What makes it interesting is the gap: not The Gap Band, but the difference between what sellers ask and what buyers are willing to pay.
And a big gap it is. Currently it sits at an 18 percent price difference for homes and 17 percent for condos/TH. That is 3 percent worse for houses, but 4 percent improved for condos compared to the prior week.
In clear English: by median prices, single family home buyers are paying 18 percent less than what sellers are wishing for, and 17 percent less for condos and townhomes than what sellers dream of. And that is substantial. That we have, in no particular sequence,
A) a difficult presidential election year
B) a marathon pandemic far from being over and
C) major civil protests against racism and injustice
does not help stabilising the real estate market. How could it?
There is simply no telling where this market is going – way too many wild cards. A buyers' market it is, or should be... Unless you encounter delusional sellers.
Again, I close with Edward R. Murrow's most appropriate quote:
"Good Night, and Good Luck."