Homes in Boca Raton are selling at list price or above, with cash buyers dominating an ever-shrinking pool of properties. Prices have risen 28% since a year ago, but inventory has fallen to less than a 4 month supply. A 6 month supply helps keeps a market at equilibrium, but we’re racing ahead of that number.
The result, as demand exceeds supply, is that the median price of single-family Boca Raton homes has moved up from less than $180,000 a year ago to almost $250,000 today. Broward County, with a 26% increase to a median price of $242,500, is following a similar trend.
In March more than 1260 single family homes were sold in Palm Beach County. This is a 12% increase from last year at this time. So even though there are fewer homes for sale, buyers are grabbing anything that comes onto the market.
You probably won’t pay much less. But you may pay more.
As a result, price negotiation has, at least for the moment, gone on hiatus. Instead, Boca Raton home sellers are considering multiple offers, and going with the highest and best. The days of going home to think about a property overnight are, at least for the moment, a distant memory.
As these homes disappear in the time it takes to pull up a contract on an I-Pad, Boca Raton Realtors are scrambling for listings, sometimes going door to door to find a homeowner who will consider an offer.
As Boca homeowners hold onto their homes, many of them hoping to move from underwater to a price surface, and others waiting to see what their homes are truly worth in a frenzied market, prices just keep rising.
Condominium prices have also bounded ahead of last year’s by 23% in Palm Beach County, to a median price of $101,250.
It’s a seller’s market. And sellers are desperately needed.
As numbers of sales of homes in Boca Raton have increased, days on market (DOM), have also decreased from 91 to 85 or fewer. However, that measurement also covers the time that homes remain on the market after a contract is signed. Many homes in the Boca Raton, Delray Beach and Boynton Beach are going to contract within 1-2 days of listing. If buyers don’t arrive on scene as soon as a new property comes out, they are likely to find themselves looking homes that will accept only back-up offers.
Eventually, as mortgage rates gradually rise, which will make homes more expensive, prices may begin to stabilize. However, that may not occur this year.
So if you’re a homeowner who’s wondering if this is a good time to sell, the answer is an unqualified, “Yes.” There’s a buyer – or more likely a dozen of them – waiting for your home.
Marc Jablon, The Jablon Team
RE/MAX Complete Solutions