Palm Beach County Real Estate Market News 

By Lilianna

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

May 6, 2019

Sizing down

Over the last several years, many “baby boomers” become empty nested and their children have finally moved out. Now is the perfect time they can start organize their future. The change in lifestyle might a change in the type of home they need to look for.

That two-story, four-bedrooms is no more needed. The property taxes are too high, the utilities are too expensive and the cleaning and repair are too difficult. 

The perfect home will need to be a nice ranch home with no more then 2-3 bedrooms. The challenge many “boomers” have faced when trying to downsize to the perfect new home has been a lack of inventory of affordable small homes. They attractive to Fist Time Buyers as well as sizing down "boomers".

However, that is starting to change. There is more new developments focusing on smaller and more affordable housing as well as Active Adults Communities full of fantastic amenities and easy transportation. The statistics showings a big increase new listings in lower price range and smaller size homes and the market become much more attractive for "boomers" to move and start a new lifestyle.

If you are a “boomer” thinking of selling your old house in order to buy a new home that better fits your current lifestyle, now may be the perfect time!

Posted in Buying Home Advise
March 14, 2019

5 Reasons To Sell

Below are five reasons listing your home for sale.

1.Demand Is Strong

The buyers demand remains strong throughout most of Florida state. These buyers are ready, willing and able to purchase…and are in the market right now! Take advantage of the buyer activity currently in the market.

2.There Is Less Competition Now

Housing inventory is under the 6-month supply that is needed for a normal housing market. This means that, there are not enough homes for sale to satisfy the number of buyers in the market.

For several years many homeowners were hesitate to list their home, for fear that they would not find a home to move in to. That is all changing now as more homes come to market. 

The choices buyers have will continue to increase over rest of the year.

Don’t wait until this other inventory comes to market before you decide to sell.

3.The Process Will Be Quicker

Today’s access to internet has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing and begin the search process on line. This makes the entire selling process much faster and much simpler as buyers know exactly what they can afford and what they looking for in their dream home. 

4.There Will Never Be a Better Time to Move Up

If your next move will be sidedown or sizeup, now is the time to move up! The inventory of homes for sale has forced these markets into a buyer’s market. This means that if you are planning on selling, I will be able to find you home to move in much faster. Prices are projected to appreciate by 4.6% over the next year

5.It’s Time to Move on With Your Life

Look at the reason you decided to sell and determine whether it is worth waiting. Is money more important than being with family? 

Is money more important than your health? 

Is money more important than having the freedom to go on with your life the way you think you should?

 

 

Feb. 2, 2019

Empty Nesters - Downsizing

More and more empty nesters are finding that downsizing to a smaller home is a their financial decision. When kids have left the 5 bedrooms house, you may realize that much of the space in your home is going unused. Downsizing to a smaller home that better suits your needs, giving you more financial freedom and more time to devote to whatever comes next in life like travel or hobby.

The first benefits of downsizing is life with lower or no mortgage payment. 

The reality is that you can also lower your housing expenses. A smaller home uses less energy so you’re lowering utility costs. Less square footage also means fewer rooms to furnish and less space to maintain. Other costs like property taxes and homeowner’s insurance are tied to the value of your home, so buying a less expensive and smaller home reduces these expenses.

Becoming an empty nester is a time of transition, from raising a family to choosing what you really want to do next in life. Owning a large home not only costs more on a regular basis but it also means a large bulk of your money is tied up in where you live. Buying a smaller home that frees up this money gives you the opportunity to invest it so that will grows, giving you more freedom to do things like travel, or create a better cushion for future retirement.

A smaller home means you have less space to clean and maintain, freeing up your time for fun an hobby. For many people whose kids are out of the house, the added time is worth trading in space you’re no longer using.

Becoming an empty nester is already a big change in life, so it’s understandable if you’re a little hesitant about selling the family home. It can be hard to embrace change, but once you do, you often find that closing one door can lead to a new one opening that holds amazing opportunities. Downsizing your home can be that opportunity that frees up your time and finances for the future.

Nov. 6, 2018

The 2018 summer season was unusually slow

Palm Beach County in Florida is always considered one of the best places in America to move to or have a second home. 

With endless beautiful beaches, lakes and waterways connecting to Atlantic Ocean, Palm Beach County is make the best place to live. You can find any types of properties, from rural equestrian ranches, to suburban gated communities as well as waterfront and coastal condominiums and luxury homes. Palm Beach County has something for everyone who likes sunny weather, and close access to water. 

Palm Beach County has been growing in population for last decade very aggressively. The growth is supported by new development that attracts families, investors, seniors and international buyers.  With the large number of buyers, the property values have been on the rise. 

The 2018 summer season was unusually slow for Palm Beach County real estate sales and new listings. 

Now, entering to full season 2018, we are seeing as real estate transactions and new listings are ramping back up.  

The total number of listings available is lower now, than this time 1 year ago and the absorption rate is low, below 5 months.

The sold to list ratio holding steady near 93%.

However, like most years we can expect to see the sales volume rise into the winter months and will likely to continue this year into the spring. Once sales pick up momentum, owners who have been putting off the listing of their property, will begin to find more confidence that this is a great time to sell.

Bottom line: 2018 has been a good year for property owners, as sold and listing prices are up in Palm Beach County.

Oct. 10, 2018

Who Pays the Real Estate Taxes?

When you buy a home, who should pay the real estate taxes the first year? Common sense tells us that the seller should pay the taxes from the beginning of the tax year until the date of closing and buyer should pay the real estate taxes due after closing. This way, they only pay the real estate taxes when they actually owned the property.

Real Estate TaxIf the seller has already paid the taxes for the entire year, the buyer should be required to reimburse the seller for his prorated share. 

This is, in fact, how real estate tax payments are usually arranged when you buy or sell a home. The home sale contract should clearly set forth these requirements--requiring each party to pay his or her pro rata share of the tax.

Than who takes Real Estate Tax Deductions?

When the buyer files his taxes for the year, he will be able to deduct the real estate taxes he paid as his deduction. However, the IRS automatically treats the seller as having paid the property taxes up to the date of sale, and the buyer having paid the taxes due after the date of sale. For more detail information visit https://www.pbctax.com/services/property-tax/property-tax-help

Posted in Buying Home Advise
Sept. 27, 2018

What You Should Know About Browsing for Homes Online

Article was adjusted but written by: HouseLogic and approved by National Realtor Association

It’s fun! It’s exciting! It’s important to take everything with a grain of salt!

Oh, let’s just admit it, shall we? Browsing for homes online is a window shopper’s Shangri-La. The elegantly decorated rooms, the sculpted gardens, the colorful front doors that just pop with those “come hither” hues.

Browser beware, though: Those listings may be seductive, but they might not be giving you the complete picture.

That perfect split-level ranch? Might be too close to a loud, traffic-choked street. That handsome colonial with the light-filled photos? Might be hiding some super icky plumbing problems. That attractively priced condo? Miiiight not actually be for sale. Imagine your despair when, after driving across town to see your dream home, you realize it was sold. 

So let’s practice some self-care, shall we, and set our expectations appropriately. 

Step one, write down what you really want vs. need. It helps you understand what you’re looking for. 

Step two, start browsing for homes. As you do, keep in mind exactly what that tool can, and can’t, do. Here’s how.

You Keep Current. Your Property Site Should, Too

First things first: You wouldn’t read last month’s Vanity Fair for the latest cafe society gossip, right? So you shouldn’t browse property sites that show old listings.

Get the latest listings from HomesellersRealty.com, which pulls its information every 15 minutes from the Multiple Listing Service (MLS),regional databases where real estate agents post listings for sale. That means that those listings are more accurate than some others, like Zillow and Trulia, which may update less often. You wouldn’t want to get your heart a flutter for a house that’s already off the market.

The Best Properties Aren’t Always the Best Looking

A picture, they say, is worth a thousand words. But what they don’t say is a picture can also hide a thousand cracked floorboards, busted boilers, and leaky pipes. So while it’s natural to focus on photos while browsing, make sure to also consider the property description and other key features.

Each HomesellersRealty.com listing, for example, has a “property details” section that may specify important information such as the year the home was built, price per square foot, and how many days the property has been on the market.

Ultimately though, ask your real estate agent to help you interpret what you find. The best agents have hyper-local knowledge of the market and may even know details and histories of some properties. If a listing seems too good to be true, your agent will likely know why.

Treat Your Agent Like Your Bestie

At the end of the day, property sites are like CliffsNotes for a neighborhood: They show you active listings, sold properties, home prices, and sales histories. All that data will give you a working knowledge, but it won’t be exhaustive.

To assess all of this information — and gather facts about any home you’re eyeing, like how far the local elementary school is from the house or where the closest Soul Cycle is — talk to your real estate agent. An agent who can paint a picture of the neighborhood is an asset.

An agent who can go beyond that and deliver the dish on specific properties is a true friend indeed, more likely to guide you away from homes with hidden problems, and more likely to save you the time of visiting a random listing (when you could otherwise be in the park playing with your canine bestie).

Want to go deeper? Consider these sites and sources:

School ratings: Data from GreatSchools.org and the National Center for Education Statistics, and the school district’s website

Crime rates and statistics: CrimeReports.com, NeighborhoodScout.com,  and the local police station

Just remember: You’re probably not going to find that “perfect home” while browsing listings on your smartphone. Instead, consider the online shopping experience to be an amuse bouche to the home-buying entree — a good way for you to get a taste of the different types of homes that are available and a general idea of what else is out there. 

Once you’ve spent that time online, you’ll be ready to share what you've learned with Homesellers Realty agent.

Posted in Buying Home Advise
Sept. 11, 2018

Housing market shifting to buyer's market

Housing tipping back to a buyer's market as sellers cut prices

Housing market shifting to buyer's market  

After several years of home price gains, the market appears to limit to what people can afford. Sellers are finally responding by lowering prices.

Approximately 14% of all listings in June had a price cut, according to a new Zillow report. In addition, home price growth is slowing in nearly half of the 35 largest U.S. metropolitan markets.

Rising mortgage rates and affordability are behind the drastic change. As the housing market recovered from its epic crash in the last decade, home prices began to gain slowly. 

The simple reason was supply and demand. As millennials aged into their homebuying years, homebuilders did not met the rising demands. Millions of single-family homes lost to foreclosure were purchased by investors and turned into single-family rentals making the shortage in houses for sale inventory.Prices went up until NOW.

"The housing market has tilted sharply in favor of sellers over the past two years, but there are very early preliminary signs that the winds may be starting to shift ever-so-slightly," said Zillow senior economist Aaron Terrazas. "A rising share of on-market listings are seeing price cuts, though these price cuts are concentrated at the most expensive price-points and primarily in markets that have seen outsize price gains in recent years."

We can say that housing market shifting to buy's market

However, all real estate is local and certain markets are tipping faster than others. In San Diego, 20% of all listings had a price cut in June, in Seattle, which continues to be the hottest market in the nation, 12% of all listings had a cut, in Palm Beach County 10%, the largest share in nearly four years.

Bottom Line:Buyers are getting negotiating power back. 

Posted in Market Updates
Sept. 7, 2018

July Home Sales Slide

National Association of Realtors reported - Existing Home Sales came in at their slowest pace in more than two years in July, decreasing 0.7% from June to a seasonally adjusted annual rate of 5.34 million. Sales were also 1.5 percent lower than July 2017 and they have dropped on an annual basis for five straight months. Losses were seen in the Northeast, Midwest and South, with gains in the West. Unsold inventory is still low at a 4.3-month vs. normal is considering 6 months.

The Association also reported, that in July New Home Sales were 1.7 percent below June's revised total of 638,000, coming in at an annual rate of 627,000. While sales were down month over month, they were up 12.8 percent from July of last year. July sales plunged in the Northeast and fell slightly in the South, while the Midwest and West saw solid gains. There was a 5.9-month supply of new homes available on the market, closer to the 6-month level considered normal. 

Home construction rebounded a bit in July after the steep decreases seen in June. Housing Starts, which measure when excavation begins on a home, grew to a seasonally adjusted annual rate of 1.168 million units. This was a 0.9 percent increase from June's downwardly revised estimate of 1.158 million. Single-family starts, which make up the bulk of the residential housing market, were up 0.9 percent from June. However, on an annual basis, Housing Starts were down 1.4 percent from July 2017, likely due to higher construction costs for materials and land and labor shortages this year. 

There was a positive sign for homebuyers who have been impacted by limited inventory. Building Permits, a sign of future construction, increased 1.5 percent from June and are up 4.2 percent from a year ago. 

Retail Sales figures for July signaled that the U.S. economy is doing well. Sales were up 0.5 percent from June, well above the 0.1 percent expected. However, June Retail Sales were revised lower to 0.2 percent from 0.5 percent, which took some of the shine from July's figures. On an annual basis, Retail Sales were up 6.4 percent from July of last year. 

At this time, home loan rates remain still near historically low levels. 

If you looking to buy or sell contact Homesellers Realty Inc. now. 561 512 0459 This informations are based on National Assocition of Realtors report.

Posted in Market Updates
Aug. 16, 2018

Housing affordability

Housing affordability falls to 10-year low in Palm Beach County, nation

According to the national trend of rebounding home prices and rising mortgage rates, Palm Beach County saw housing affordability fall to a 10-year low in the second quarter of 2018.

Just 54.9 percent of homes sold in Palm Beach County in the second quarter were affordable to a median-income family. That's the lowest affordability reading since 2008. (based on a median home price of $260,000 and a median income of $71,800).

This information is based on the National Association of Home Builders/Wells Fargo Housing Opportunity Index and most current article by Jeff Ostrowski, Palm Beach Post Staff Writer.

Henry Kaplan, sales manager at Century 21 Tenace Realty in Boynton Beach, said affordability has become an increasing issue for buyers in Palm Beach County and we have to have the right combination of income, credit and down payment. The housing market has been slowed in part because move-up buyers need to sell their homes before they can afford to buy another place and because people don't want to list until they know where they're going." Kaplan said.

The national median home price jumped from $252,000 in the first quarter of 2018 to $265,000 in the second quarter—the highest quarterly median price on record. At the same time, average mortgage rates rose from 4.34% to 4.67%.

 

Aug. 14, 2018

Mortgage rates have risen about half a percentage in 2018

What does that mean for you if you’re buying a home now or plan to buy one soon?

First, don’t panic.

When you’re buying a home, the mortgage rate matters. However, you shouldn’t focus on the rate and let that scare you and stop searching for the home.

The average rate on the 30-year fixed-rate mortgage rose to average 4.5% in February, which is about half percent from 2017. This increase doesn’t have a major impact on the monthly payment. On a 30-year loan for $200,000, the monthly payment would be about $59 more at a 4.5% interest rate than at a 4% interest rate.

What to do when rates rise

Lock your mortgage rate. If you close the home loan by the specified date, the rate can’t go up. You can use this tactic after the lender has approved you for a mortgage for a specific house.

Buy “points” to reduce the interest rate. If you have the cash, you can pay for discount points — in effect, prepaying some of the interest in exchange for a lower mortgage rate.

Revise your price range. A higher mortgage rate brings higher monthly payments. Rising rates might force you to adjust your home-price range downward.

The higher interest rates are the ‘new normal’. Talk to any housing economist about mortgage rates, and you’ll hear that rates have been abnormally low in the decade since the housing crash. I remember purchasing my first home for 9% interest rates. The rates we’re looking at today are still, pretty low.

People have gotten kind of lulled into these low rates, and a lot of people think this is normal, but this is not normal.

 

We are returning to normal, and it is going to be a painful process, but it is happening. 

Posted in Buying Home Advise