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 December. Read on to learn more about the South Palm Beach County Real Estate market:
Prepare for a Changing Market
We closed out the year with an overall year over year increase of 4.1% in the Median Sales Price and 7.4% of the Average Sales Price for all property types in South Palm Beach County. Although it is a slight increase, it is a smaller change than in recent years. So although home prices have not yet fallen, there was a decline in the rate of appreciation. The price increases are a result of high demand for fewer homes for sale, however, there is evidence that inventory levels will improve in 2019. This may have the effect of putting downward pressure on prices. What does this mean for buyers and sellers? Although every sub-market and price range is different, in general buyers are feeling no sense of urgency at this point in time. All the leading indicators are pointing toward a flattening of home prices this year. If Buyers don’t get the deal they want, they will wait for the next one. For Sellers, the imperative to price right is even greater. If you are thinking of selling, you might want to jump in while inventory levels are still relatively tight.
Unemployment rates remained low again in 2018, and wages continued to improve for many households. It is good news for buyers and sellers in real estate transactions when wages grow, but the percentage of increase has not kept pace with home price increases. This has resulted in a growing affordability crisis as we closed out 2018. The year to date Housing Affordability Index for our region decreased to -8.6% for single-family homes last year -10.1% for Townhouse/Condos. This again may have some impact on pricing moving forward. With interest rates increasing as well, the median priced home has become less affordable to the median income household. We need to keep our eye on this as we move into 2019.
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.