If you’re thinking about listing your Boca Raton home for sale, you’ll find that Boca home prices are still appreciating; however the rate of increase has slowed from its high level of around 1.8% per month. Now we’ve slowed to about 1% per month, and that may soon come to a halt as more homes reach the market.
Some price resistance from buyers.
We are starting to see some price resistance on the part of new buyers. They’re getting a little bolder in their approach to because there are more homes in Boca Raton hitting the market place. That’s because sustained good news about the real estate market has more people feeling like it may be the right time to sell their homes in Boca. We’ve been watching a steady increase of about 6% per month of homes listed for sale.
But even as more homes in Boca Raton come on the market, cash buyers are still out there in waiting to pounce on homes in the $100,000 – $400,0000 range. Right now it’s 2/3 cash buyers to 1/3 mortgage buyers. But if you’re using a mortgage and you’re patient, there are homes out there waiting for you.
Occasional price concessions from sellers.
In other good news for buyers: we’re seeing more price concession from Boca home sellers because of the increased number of homes for sale. Bidding wars have disappeared. They have been replaced by common sense pricing that follows neighborhood comps and their continuing, but slowing increases.
Those increases are starting to level out. Because even as home prices gained in October, Palm Beach County’s median price remained at $253,000. According to the Realtors Association of Palm Beach County (RAPB), that median has not changed during the previous 4 months.
Still a seller’s market. But prices are easing.
This suggests that while we are still in a seller’s market, the balance is slowly shifting toward equilibrium. Equilibrium in the real estate market usually equates to a 6 month supply of homes. We’re hovering around a 4 ½ – 5 months supply, so we’re getting close. This competition can only be good news for buyers, because it helps to anchor market pricing.
The number of homes in Palm Beach County that sold last month – 1364 – is almost 20% higher than last year’s figures, and the RAPB also indicates that the 2349 listings in October are the highest number we have seen in the past 5 years.
The additional good news about home price increases is that the number of Palm Beach County home owners who were under water fell from a high of 38% down to 27%. This translates to well over 10,000 homeowners who may now have property that they can sell without bringing money to the closing table.
In an interesting contrast, Palm Beach County condo sales dropped around 8% from last year. However, median prices increased by almost 30%.
Marc Jablon, the Jablon Team
Re/Max Complete Solutions