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Boca Raton and Palm Beach County Real Estate Market Update - September 2018

Gia Freer

As one of the Brokers and the Office Manager, it's my pleasure to make sure every seller is satisfied and that every buyer is aware of your listing! ...

As one of the Brokers and the Office Manager, it's my pleasure to make sure every seller is satisfied and that every buyer is aware of your listing! ...

Oct 20 4 minutes read

Palm Beach County Housing Market is Seeing A Sales Slowdown As Interest Rates Rise

In taking a closer look at the internal numbers, here are some indicators we are seeing: 

  • The median sales price of a single family home in Palm Beach County was $345,000 ….. Down slightly from the higher prices of earlier this year.
  • The number of housing units sold was down significantly from August monthly sales, albeit higher than the same month last year. Seasonal factors are included in this calculation.
  • The inventory of homes for sale in Palm Beach County remains low, with a 4.6-month supply of houses on the market. There were 6,726 houses for sale in September, almost the same as one year ago.
  • Homes are sitting on the market longer and sellers are having to make price improvements in order to get a contract.
  • However, trends were a little different in the condo and townhouse market. The typical Palm Beach County condo that sold in September fetched $175,000, nearly the same as a year ago.
  • Luxury homes are continuing to take significantly longer to sell.
  • Rising interest rates (we have had 3 rate increase already this year) are beginning to bite into the the first time home buyer segment of the market as well as move-up buyers. Another increase to interest rates is anticipated in December, with perhaps 3 more in 2019.

As we continue to look for clear trends and market changes our summary takeaways remain the same:

  1. The ongoing shortage of single family home inventory continues to create headwinds for our housing market.
  2. Our market is still behind on new construction, which is not keeping up with demand and adding further pressure. New construction is facing significantly higher costs to build (specifically: Land, wages, materials and interest costs). Homebuilders are therefore constructing higher priced units in order to respond to both increased demand and building cost concerns. 
  3. The increasing Interest Rate environment with 30-year mortgage rates reached 4.85% last week (up from 3.88% a year ago) with predictions taking us above 5% in 2019, representing the highest levels in 10 years. This denotes another headwind for the market to absorb.

Here is a quick video going into more depth of current economic indicators:

Review the Palm Beach County Market Statistics for September in Detail Here:

SINGLE FAMILY HOMES September 2018 September 2017 % CHANGE
Closed Sales 1,227 1,087 ⬆︎ 12.9%
Closed Sales (Paid in Cash) 386 379 ⬆︎1.8%
Median Sale Price $345,000 $325,000 ⬆︎6.2%
Median % of Original List Price Received 94.7% 95.0% ⬇︎ -0.3%
Median Days to Contract 49 47 ⬆︎ 4.3%
Inventory (Active Listings) 6,726 6,707 ⬆︎ 0.3%
Months Supply of Inventory 4.6 4.6 ⬌ 0.0%
TOWNHOUSES/CONDOS September 2018 September 2017 % CHANGE
Closed Sales 1,034 832 ⬆︎ 24.3%
Closed Sales (Paid in Cash) 580 490 ⬆︎ 18.4%
Median Sale Price $175,00 $172,000 ⬆︎ 1.7%
Median % of Original List Price Received 94.3% 94.2% ⬆︎ 0.1%
Median Days to Contract 53 52 ⬆︎ 1.9%
Inventory (Active Listings) 5,678 5,702 ⬇︎ -0.4%
Months Supply of Inventory 5.0 5.2 ⬇︎ -3.8%

The Palm Beach County market statistics are courtesy of your REALTOR®, a proud member of the Realtors® Association of the Palm Beaches (RAPB). RAPB represents over 14,000 members involved in all aspects of residential and commercial real estate.

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