Palm Beach County’s housing market reported rising median prices and more closed sales, along with slightly reduced listing inventory in February 2018 as compared to February 2017, according to the latest housing data released by Florida Realtors®.
Here’s what buyers and sellers of Boca Raton real estate need to know.
Median Price Continues to Climb
The median price of closed sales jumped significantly over the same period last year. The median price is the midpoint, meaning half the homes sold for more, half for less. Months supply of inventory (how long it would take to sell all of the current homes listed for sale) is still hovering around 6 percent, which indicates a balanced market favoring neither buyers or sellers.
Closed Sales Increase
Total closed sales showed a 2.7% increase, and pending sales only increased slightly. Pending sales are a leading indicator of what closed sales will be in the next couple of months, so I don’t expect huge increases in closed sales in the near future.
Higher Interest Rates May Impact Buyers
Rates have begun to move higher, and are up almost one percent since September 2017. Because of this increase, the buying power of those relying on financing has decreased approximately 10%. For example, a buyer who previously qualified for a maximum purchase price of $500,000 will now qualify for $450,000.
It is important to note, however, that rates are still very low in a historic context. Many mortgage lenders are experiencing increased volume as buyers get off the fence to buy now before rates increase even more.
We will need to keep an eye on all of these factors as we head into the busy spring selling season.
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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.