How Boca Raton’s Housing Market Has Performed in 2019

Florida’s real estate market continues to increase as the state enjoys a 3.4% unemployment rate, which is lower than the national average. Lower unemployment rates have allowed many would-be homebuyers to enter the market and purchase their first homes.

Zillow reported that the average value of homes rose 4.7% in the past 12-month period in July.

Boasting no income tax and a tropical location, the state has become a prime location for people who are relocating. The state has grown by over 1.6% this year and 11% since 2010. Predictions also project that home values will increase by only 1.8% between July 2019 and July 2020, and the slower housing price increase is expected to attract more homebuyers.

Boca Raton’s Housing Market in 2019

Redfin and RealtyTrac both provide data on the housing market in Boca Raton, but their figures do vary. Potential residents who want to buy houses in Boca Raton will find RealtyTrac reporting that through July 2019, the market experienced:

• 3,890 homes sold
• 650 foreclosures

At the time, there were more than 1,360 homes for sale. The median listing price also rose 2% year-over-year to $409,900, or roughly $9,100 higher than the year prior. 

But Redfin provides a slightly different view of the market for Palm Beach county home buyers. The portal claims that the market in Boca Raton is not competitive, and that there were over 577 homes sold in the area over the last month. 

The average home buyer put 3.8% down on their mortgage, and homes sold for an average of 5.2% under their listing price. The average home sells for $187/sq. Ft. The average sale price last month was $325,000, or 2.6% when compared to the same period a year prior.

The average days on the market was 79, but “hot homes” tend to sell in just 42 days. “Hot Homes” also sell for just 2% below asking price, and these homes are the most desirable. 

A lot of companies in the area will pay cash for homes. The cash value is often lower than the asking price, but cash makes the sale move along much faster. Home buyers that need to have a short sale or sell their home quickly may want to consider this selling option.

CNBC reports that at the end of the second quarter of the year, Americans experienced a 4.8% increase in home equity, or roughly a $428 billion gain nationwide. The average homeowner’s equity rose by $4,900 in just one year, but most homeowners are “sitting” on potential cash. On the other side, those who want to use their home’s equity release are advised to use an equity release calculator to determine how much they can get.

Conservative buying in today’s market has led to more homeowners renovating and staying in their homes compared to owners in the past. Borrower equity has more than doubled since the housing recovery began, and lower interest rates are helping push potential homebuyers to make purchases.

Fewer homeowners are tapping into their home equity despite low mortgage rates, according to the report.

Fear of a real estate crash has caused many owners to stop borrowing against their home, but it has also led to more owners selling when cash is offered.