The real estate market in Florida’s Treasure Coast showed mixed trends in December. While more homes were sold, the number of new listings dropped in Martin, St. Lucie, and Indian River counties. This shift signals a significant change in the region’s real estate dynamics, with local experts noting a move toward a more balanced market. Here’s what you need to know about the December performance and future outlook of the Treasure Coast housing market.
Active Listings and Inventory Trends
The number of active listings in the Treasure Coast decreased slightly from 4,351 in November to 4,313 in December. While this represents a minor drop, it’s important to note that the current number of homes on the market is still higher than the pre-pandemic levels, which peaked at 4,293 homes in March 2020. The data, collected from TCPalm starting in January 2020, indicates that the market has surpassed its previous highs and is now stabilizing.
This decrease in active listings, while minor, shows a shift in the market. It’s no surprise that real estate conditions are evolving post-pandemic. As of December, the Treasure Coast is nearing what experts define as a “healthy” real estate market, characterized by an inventory level that can meet demand for approximately 5½ months. This kind of market is considered balanced, with neither buyers nor sellers having an edge over the other.
Towards a Balanced Market
Jonathan Lickstein, president of Broward, Palm Beaches & St. Lucie Realtors, emphasized that the market was approaching equilibrium. “We’re not seeing too much change with the price of the homes. It’s balancing out,” he noted. This balance is encouraging for both homebuyers and sellers, as it provides a stable environment where neither side has to deal with dramatic price hikes or drastic drops.
The market shift suggests that sellers may find it harder to demand the same high prices they enjoyed during the pandemic boom. On the other hand, buyers may find themselves with more options, which leads to more opportunities for negotiation. Lickstein mentioned that the increase in inventory is good news for buyers, offering more homes to choose from and potentially better deals.
While the market seems to be stabilizing, more inventory also means increased competition for homes. The influx of listings over the past few months has brought a lot of choices for potential buyers, but as listings drop, competition could heat up, especially in desirable areas.
Mortgage Rates Impacting the Market
One of the major factors influencing the housing market is mortgage rates. During the last week of December, mortgage rates saw an increase, with the 30-year fixed rate climbing to 6.91% and the 15-year fixed rate rising to 6.13%, according to Freddie Mac’s mortgage survey. These rate hikes may seem steep compared to earlier months, but they are still below the long-term historical averages.
For buyers, these higher rates could make homeownership more expensive. While interest rates are rising, they have not yet caused a major slowdown in the housing market. However, they will likely play a role in shaping future demand. Homebuyers should be prepared to adjust their budgets and expectations when it comes to monthly payments, as the higher rates will make mortgages more expensive.
For sellers, the higher interest rates might mean that some potential buyers are unable to afford homes in the current price range, which could lead to fewer offers and slightly longer times on the market. Sellers may need to be more flexible and adjust their pricing strategies to accommodate these changes in buyer affordability.
The Road Ahead for Treasure Coast Real Estate
Looking ahead, the Treasure Coast real estate market seems to be settling into a period of balance, which could lead to a more sustainable housing environment. With inventory levels approaching what experts define as a healthy market and home prices stabilizing, both buyers and sellers will need to adapt to the new conditions.
For homebuyers, the key takeaway is that more inventory and stable prices will offer more opportunities to find a home that fits their needs. Buyers can expect more options in the market, and with a bit of patience, they might be able to negotiate better deals. On the other hand, sellers will need to be mindful of the increased competition and the impact of rising mortgage rates on potential buyers.
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