I want to start by wishing everyone a Happy Holiday. We are grateful for the opportunity to help so many of you buy and sell your homes and we want to say thank you! To make the season bright, Christmas Tree and Menorah lighting ceremonies, parades, ballets, concerts, plays, and events featuring snow and twinkling lights are offered throughout the area. Additionally, there are numerous opportunities to help those in need. Check out the City of Parkland Community Facebook Page for more information.
Here is an update on the current Parkland real estate market. Although homes have sold for higher prices in 2022 than in 2021, there is an undeniable downward trend and sales are slowing. Let’s take a look at these 3 charts from the MLS pertaining to the Parkland market:
The first chart compares the percentage of homes sold for the original asking price in 2021 and 2022. As you can see the number of homes selling for the asking price or higher started to decline in May of 2022. Furthermore, a drastic drop emerged in August of 2022 and the numbers are still falling. This trend signals the end of the buying frenzy.
The second graph compares the sale prices for single-family homes in Parkland for 2021 and 2022. Although homes are not selling for the original asking price as indicated in chart 1, this chart suggests homes in 2022 experienced strong sale prices. As a matter of fact, the average home price in Parkland was well over $1,000,000 for most of 2022. Notwithstanding the strong market values, a continued decline since June of 2022 is evident.
The third chart compares the number of active listings for each month in 2021 and 2022. The inventory of homes for sale jumped in June 2022 and soared through October. These numbers are not only a result of homes coming on the market; they are also influenced by homes remaining on the market longer.
Upon reviewing the charts collectively, it appears many homes are entering the market with asking prices higher than what the current market will yield. These high asking prices are a result of the real estate market adjusting more slowly than the rapidly rising interest rates. Correspondingly, we will see an increase in price reductions, homes remaining on the market longer, and the return of expired listings.
Lastly, there is no doubt rising interest rates are playing a role in the current housing market. In an attempt to combat the negative impact of increasing rates, the Bill Sohl Luxury Homes Team has teamed up with Joe Ballerino of PrimeLending. Joe Ballerino and his team at PrimeLending offer several innovative programs to help offset some of the costs associated with the higher interest rates. It is our belief: by assisting buyers to obtain reasonable funding, we are also helping our sellers. Please feel free to contact Joe at 954-298-0417 with any questions or for more information.