Boca Raton and Palm Beach County Real Estate Market Update June 2018
Palm Beach County Home Prices Continue to Climb
In taking a closer look at the internal numbers, here is what we are seeing:
- The median sales price increased to $355,000 versus $345,000 this time last year, and very slightly up from May 2018.
- Sales were down slightly, and the number of new listings is insufficient for overall buyer demand. It is this combination of factors that is creating a difficult environment for buyers and at the same time, an advantageous position for sellers.
- The inventory of homes for sale in Palm Beach County remains low, with a 4.8-month supply of houses on the market. There were 6,858 houses for sale in June which is a 2.4 percent decline from a year ago.
- Trends are similar in the condo and townhouse market. The typical Palm Beach County condo that sold in June fetched $190,000, up 10.1 percent from a year ago.
- Houses priced at $200,000 to $250,000 occupied the hottest spot in Palm Beach County's housing market in June. Properties in that price range found a buyer in a median of just 27 days. By contrast, mansions priced at $1 million or more needed 129 days to go to contract.
- Home prices still remain well below record levels. During the housing bubble, the county’s median resale price peaked at $421,500 in November 2005 (a sum that adjusted for inflation equates to $537,517 in today's dollars).
Where does this leave today's buyers and sellers of real estate?
A continued shortage of single family home inventory continues to create upward pressure on prices. Even on a national level the supply shortage is chronic. Additionally, we are still behind on new construction which is adding further pressure on supply and prices.
All of this means, todays market is a strong seller's market.
At the same time, the increasing interest rate environment with 30-year mortgage rates reaching 4.52% last week (with predictions taking us above 5% in 2019) represents the highest levels in 10 years. Many believe the time is now to lock in a mortgage before rates continue to climb.
Here is a quick video going into more depth of current economic indicators:
Check out the Palm Beach County market stats for June in detail here:
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.