While prices of Boca Raton homes continue to rise because of lack of supply, statistics indicate that help is on the way for beleaguered Boca home buyers.
According to the MLS, there are 11.4% more homes for sale in Boca Raton than there were last year at this time. Overall, year to year, Boca home listings are up almost 2% since last year.
Sellers see value in listing their homes.
While this does not exactly constitute a watershed event in terms of supply catching up with demand, the numbers show that more Boca homeowners are putting their homes up for sale as prices continue to rise.
Boca itself has shown almost a 30% price increase from last year at this time. This allows numerous homeowners who were formerly underwater to surface. Once they are able to see above water, many see profit in a sale.
Sold homes up 15% from last year.
Meanwhile the number of sold homes in Boca Raton has increased almost 15%, from 2459 last year to 2826 as of this month.
Palm Beach County single family homes have shown a jump of 21% in listings from a year ago. Because there is a glut of buyers, those new listings disappeared rapidly. In addition, close to 69% of them sold for cash. Broward County was close behind with a 17% increase in listings.
Room for optimism
However, there is some good news on the horizon for homebuyers in Boca and surrounding areas. As Boca Raton single family home values in the area increase, the private equity funds that were buying in bulk, such as Blackstone Group, are likely to slow their purchases. Median prices for Broward County homes that were in some state of financial distress were up 22% from last year, while those in Palm Beach County had risen to just over 24%.
In addition, four homebuilders in the area, WCI, Toll Brothers, Standard Pacific and Lennar have more than 1500 homes in the planning stages in the Parkland area over the next several years.
Finally, mortgage rates, which are expected to continue their rise, are likely to help lower demand for homes, and help to temper home price increases. This should help to even the playing field a bit for Boca home buyers.
Market equilibrium not far off.
Because of current low inventories in Boca Raton, Boca home sellers have a temporary market advantage. However, inventories of listed homes are rising. For example, right now, Palm Beach County shows a 5.3 month supply of unsold homes.
A six months home supply constitutes market equilibrium; that’s when buyers and sellers start to treat each other with a little more dignity and respect. We’re on our way, slowly but surely.
Marc Jablon, The Jablon Team
Re/Max Complete Solutions