What shifts in demand have you observed, and what trends are emerging in the current market landscape?

In my 36 years of experience, the surge in real estate demand during the pandemic is unparalleled. This pent-up demand may never occur again in my lifetime. The unprecedented doubling of property values in numerous markets over the past 24 months has led to a unique set of challenges. Buyers are hesitant due to inflated prices, while sellers are reluctant to sell without knowing where to relocate. Consequently, the next 12 months are anticipated to witness a substantial drop in sales volume owing to inventory shortages, an issue that currently lacks a viable solution.

Are there specific economic indicators influencing your services?

Inflation has been significant, notably impacting worker compensation and driving up costs of materials like steel, concrete, air conditioning equipment, and appliances. Monitoring inflation and interest rates is crucial for us. A significant correction in real estate could stem from shifts in equity markets and interest rates. What’s unique about this market cycle is the scarcity of inventory. Typically, a correction occurs when there’s surplus supply and low demand, but the current scenario involves a lack of supply despite sustained demand. The affluent have greatly benefited from the pandemic, witnessing remarkable wealth accumulation through the equity markets over the last 18 months.

What’s your outlook for the near term?

Replicating the exceptional real estate activity of the past 18 months seems improbable, but North Palm Beach County remains highly desirable. I foresee the next 24 months continuing to be favorable for our industry in this area.