I thought it would be interesting to analyze the state of the housing market in the Boca area. For the purposes of this analysis, I used single family homes in Boca Raton and Highland Beach for the period of July 1 - September 30, 2015 over $300,000 and broke out the analysis into price bands. I will analyze the condo market in future posts, but I believe that the numbers are comparable.
What do we learn?
The inventory levels are very low. In the price range of $300-500K there is not even a month’s worth of active listings based upon the recent sales. (The number of months of inventory is simply the number of current listings divided by the actual sales per month). As you go up the price ladder, the time on market and inventory supply increases, however it is still very favorable to sellers. Even properties over $2,000,000 are in high demand. It is also very instructive to look at the ratio of the ultimate selling price to list price. (caveat: the list price used is the most recent asking price, so it does not account for price reductions). Again, the percent of the asking price received does go down as you go up the price scale, but in all price ranges the sellers are receiving over 90% of their price. Depending upon the specific community, many homes are selling for at or extremely close to the asking price. In some areas, particularly with homes under $500,000, sellers are receiving multiple offers and even sometimes selling above asking price.
Advice for Sellers
Sellers: this is a great time to sell. Take a look at this chart. If your home has been on the market for more than the median days on the market, there is something wrong. Either your home is overpriced, it is does not show well, or the marketing is sub-par. All three things need to be in place to get maximum value. Your neighborhood will have its own particulars and market conditions. We can help you analyze your specific community and give you quality information so that you can make informed decisions.
Advice for Buyers
Buyers: Interest rates are still low. If you are financing, it is still a good time. If you are a cash buyer (and half of our buyers are paying all cash) it is even better ~ sellers will definitely favor an offer without a finance contingency. Yes, it is daunting because there seems to be so little inventory. But if you are patient and have a good REALTOR® advocating on your behalf, you will have success. If you are looking for a “steal", that is not going to happen, that ship has definitely sailed. But if you are realistic you will be okay.
We work with both buyers and sellers of homes in the Boca Raton, Delray Beach, Highland Beach and surrounding communities. Our agents are in the trenches every day and know the market. Please don’t hesitate to call us if you have any questions or we can help in any way.
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.