“When is the best time to buy a home in Boca Raton?” is the question I was asked about an hour ago.
I thought a minute and said that at the rate the current market is moving, the answer is ‘yesterday.’ If you’re able to find a property you like, make an immediate offer.
Under $4000,000 expect to pay full price. Or more.
If the property has an asking price of under $400,000, expect to pay asking price or a bit above it. Also, don’t be surprised if there are several offers on the property.
If you can purchase in cash, you have a much better chance of being the winning bid. If you’re using a mortgage, come with a mortgage approval. Try to move beyond the pre-approval stage.
If you’re looking at higher priced properties — $500,000 to a million dollars and over — then you have a better chance for some negotiation.
Property values are up 29% from a year ago.
Property values in Boca Raton have increased 29% from last year at this time. Inventory of available homes has shrunk by almost 60%, and many of the listed homes are in country clubs. Very few buyers are searching for country club homes because of the upfront equity payments and annual country club dues that go along with them.
So, in realty, since 99% of buyers have no interest in homes in country clubs, the inventory of available homes is at an even lower point that the statistics indicate.
Back in the real estate doldrums of in 2009 through early 2011, housing was backed up 18 months. It seemed like the supply of houses would never end. Now we’re down to less than a four month supply. A six month supply is considered a state of equilibrium.
The shadow inventory is not going to bring prices down.
And that shadow inventory of foreclosed homes that was supposed to send home prices tumbling has never materialized. Instead, those foreclosed homes are being purchased by private equity funds and placed on the rental market. So today’s enthusiastic buyers are competing for fewer homes.
Yesterday, I took buyers to see homes in Boca Raton. They liked two of them, but wanted to wait a day to discuss them before going back to take a second look.
I told them what the conditions are in the market, but they refused to believe the reality of the situation.
Well, it turns out that there will be no second look, because both homes received offers today. This is the speed of today’s home buying market in South Florida.
The moral of the story is that if you’re serious about buying a home and you find the property you like, don’t deliberate. Act immediately. Make an offer within the hour and be prepared for a counter-offer.
Otherwise, because of current high demand and lack of supply, that Boca home is likely to be purchased by somebody else before the day is over.
Marc Jablon, the Jablon Team
Re/Max Complete Solutions