Numbers are in for 2017 real estate sales, and we continue to see some challenges for buyers, especially first-time and entry level buyers. Constrained inventories in the lower price ranges are often producing multiple offers, and buyers with finance contingencies are losing out to cash buyers in many cases. In fact, 46% of closed sales in the Boca Raton real estate market had no financing at all.
A Look at the Numbers
All in all, activity in Boca Raton was within a normal range when comparing 2017 to 2016, as well as for Palm Beach County as a whole. The significant changes were in the average and median sales prices, which increased more than 6% countywide. Otherwise, slightly fewer listings came to market in 2017, with a corresponding decrease in the number of homes sold as compared to 2016. Boca Raton showed an inventory of only 2,248 active listings at the year’s close on December 31, 2017, which is a 7.3% decline from the previous year. Therefore, unless inventory levels start ticking up, we will see more constraints on inventory in the Boca Raton real estate market which will potentially push pricing up further.
Other Considerations for the 2018 Market
Anecdotally, we are starting to get calls from potential buyers in high tax, high cost of living areas (such as the Bay Area in California, New York City, etc.) who are pursuing the option of relocating to Florida. The main reasons these individuals are citing are the lower cost of living and absence of state income tax, as well as the new tax reform bill. That bill will be hitting those with higher incomes in these high-tax states particularly hard. It will be interesting to see if there will be an increase in sales this year due to this potential influx of buyers, and we’ll be keeping a close eye to determine if that is the case.
If you’re interested in learning what else could impact your decision to buy or sell this year, give me a call to discuss your options!
Gloria Singer is the Broker of Boca Expert Realty, a boutique Boca Raton real estate company with a focus on professional service and an unparalleled customer experience. Our select agents are amongst the top performing professionals in the field. Visit www.BocaExpert.com for information on Boca Raton, Delray Beach and Highland Beach real estate and to connect with an expert in the local market.