One of the most frequently asked questions we Boca Raton REALTORs® receive is "How's the Market"? Whether someone is buying or selling or just curious, everyone seems to want to know what is happening in the real estate market. The most recent local market update has been released for Boca Raton real estate as well as for the entire Palm Beach County for November 2015. Some significant numbers to ponder:
- 90 - This is the average number of Days on Market from when a Boca Raton property is listed until when it is sold. It is close to 14% less than the same period last year. It is much higher than Palm Beach County taken as a whole, but that reflects the higher price point in Boca Raton. The higher the price, the longer that it takes on average to sell the home.
- 92 - The percentage of original list price that sellers received.
- 6 - The number of months supply of inventory. This is how long it would take to sell the existing number of homes on the market. Six months indicates a balanced, healthy market favoring neither sellers or buyers.
To see the Boca Raton Market Update, click here.
Regarding Palm Beach County, here are some takeaways:
- 37 days - The median days on the market it took a single family home to sell in November 2015. This was a 40% decrease from the same period last year. Please note that as the price range increases, the median days increases as well. For single family homes over $1,000,000, the median days on market was 143.
- 93.5% - the average percentage of the original list price received. This number has remained relatively constant over the last 12 months.
- 4.8 months - the number of months it will take to sell the current inventory of homes for sale. Economists use a benchmark of 5.5 months to indicate a balanced market. Lower numbers indicate a sellers’ market while higher numbers indicate a buyers’ market. This number is 16% less than the same period last year. The months supply of inventory has steadily decreased over the last twelve months, indicating a slight sellers’ market.
- 7,320 - The number of active listings of single family homes at the end of November 2015. Of note is that the number of active listings under $300,000 has decreased significantly year-over-year, while the number of listings over $1,000,000 has increased 12%.
- Distress sales - The number of homes sold in foreclosure and short sales continues to decline significantly both in raw numbers as well as a percentage of total sales. Short sales have declined as values have increased, thus the number of homeowners with positive equity in their homes has improved. Bank foreclosures as well have declined as most lenders have cleared their books of REO (real estate owned) properties.
- $295,000 - the median sale price of single family homes sold in November 2015. This is an increase of 11.3% over November 2014. This reflects that fewer homes in the lower price ranges are selling.
- Cash- Cash is still king. 41% of single family home sales and a whopping 68% of Townhouses and Condos were purchased for all cash. The remainder were purchased with financing. I think the high percentage of condo cash sales is due in large part to the fact that many condos are purchased by second home buyers who generally have more cash. But 41% of single family homes is still quite a significant number given that interest rates have been so low.
All numbers are provided by the Florida REALTORS®. To read the entire report, click here.
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.