Newly released market statistics from Florida Realtors® are in, showing recent real estate market activity in our area. The reports compare year over year data for August 2019. Read on to learn more about the real estate market in South Palm Beach County:
As the summer draws to a close, multiple opposing factors and trends are competing to define the direction of the real estate market. After the Federal Reserve lowered its benchmark interest rate on July 31, 30-year mortgage rates continued to decline, approaching all-time lows last seen in 2016. [UPDATE: On September 18, 2019, the Fed cut rates another ¼% for a target range for the Federal Funds Rate of 1.75-2.00%]. In spite of these rate cuts, most experts agree that the interest rate reductions are unlikely to bring sufficient relief, at least in the short term, for first-time home buyers. The lack of affordable inventory and the persistence of historically high housing prices continue to affect the housing market, leading to lower-than-expected existing home sales at the national level.
Local Market Overview
New Listings decreased 11.9 percent for Single Family homes and 15.7 percent for Townhouse/Condo homes. Pending Sales decreased 16.7 percent for Single Family homes and 22.1 percent for Townhouse/Condo homes. Inventory decreased 14.7 percent for Single Family homes and 9.2 percent for Townhouse/Condo homes. Median Sales Price increased 2.4 percent to $368,500 for Single Family homes but decreased 4.4 percent to $175,000 for Townhouse/Condo homes. Median Time to Contract decreased 10.3 percent for Single Family homes but increased 16.7 percent for Townhouse/Condo homes. Months Supply of Inventory decreased 14.3 percent for Single Family homes and 4.7 percent for Townhouse/Condo homes.
Impact on Buyers
As many homeowners refinanced their homes to take advantage of declining interest rates, consumer confidence in housing was reported to be at historically high levels. Even so, as real estate professionals, we will need to monitor the market for signs of continued imbalances. Although the inventory of affordable homes at this point remains largely stable, it is stable at historically low levels, which may continue to push prices higher and affect potential buyers across the U.S.
Want to know more?
I’m always here to help you navigate the local market. I can analyze the specific neighborhood and price range for you, whether you are interested in buying or in selling. Contact me today for a customized look at the latest conditions for the Boca Raton real estate market and beyond.
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.