Housing Holdup: Real estate market in Martin County slowing as home prices rise

MARTIN COUNTY, Fla. (CBS12) — As the population along the Treasure Coast soars, the price of homes are following suit.

This, after many people in Palm Beach and other counties in South Florida have looked to move north for a more affordable lifestyle.

The rising demand for housing on the Treasure Coast is now increasing the cost of living – leaving prospective homebuyers at a crossroads.

Fluctuations are happening in demand – and conversely – availability.

“There’s not as many transactions that are taking place is really the end result,” said Jeff Lichtenstein, the President of Echo Fine Properties. “The people who are in house right now, who have low interest rates – a lot of those people don’t want to make a move.”

In Martin County, during the third quarter of 2021 there were 672 single family homes sold.

Fast forward to the third quarter of this year – that number is down nearly 30 percent.

According to Floridarealtors.org – the median sale price in the county increased by 22 percent in that time – a $105,000 uptick.

Homes in Martin County, Florida. (WPEC) 

“If you go back a year ago, we had low interest rates, we had low inflation, we still had stimulus money coming in – and all that has dissipated,” Lichtenstein shared. “Today, we have higher interest rates, higher inflation and there’s no stimulus coming in, so vastly different environment.”

He says the boom of cheaper housing in Martin County and along the Treasure Coast – could be on pause for a year.

“The extra little oomph that was going on in Martin County was the result of the pandemic and people getting priced out of the market in Palm Beach County – and that part has disappeared,” Lichtenstein remarked. “They were just completely priced out of the market, and that’s not happening anymore.”

He says it’s notable because of where a majority of Martin County buyers come from.

“A lot of the buyers that were coming up for Martin County – coming to Martin County were from Palm Beach County. We’re still way below inventory.”

Homes in Martin County, Florida. (WPEC)

And for the moment, there’s more inventory in Palm Beach County that – while still expensive – aren’t selling as fast as on the Treasure Coast.

“It’s really a good opportunity in many ways to buy because there’s a selection of what to purchase,” Lichtenstein said. “You’re not running into the bidding wars.”

However, Lichtenstein believes that many people could be priced out of the Palm Beach County market by the end of 2023 due to changes in inflation and interest rates – likely reviving the buying boom in Martin County.