Top Sales for September 2022 in Coastal Boca Raton

The top two sales in the month of September come to us from Royal Palm Yacht & Country Club. Our top sale, a waterfront estate, traded for $9,400,00, $900,000 under the asking price, after just 20 days on the market. Coming in at number two, this offering was two homes on three interior lots that sold for just over $9M. Combined to be nearly an acre, this parcel is the largest in RPYCC. Over 50% of the homes on our list last month come from 1960’s and 1970’s. There is just one new construction home in the top 10. Also notable is that the list is 70% single family homes, with just three condos making the top ten list last month. Boca Raton currently has 142 luxury homes on the market, with the majority clustered in Royal Palm Yacht and Country Club, Spanish River Land, and The Sanctuary. With a busy season expected in 2022-2023, now is the time to prepare your home if you are planning to sell. For a confidential conversation about the value of your home, call me at 561-500-7465.

419 E Coconut Palm Road
6  beds |  7.5 baths | 6,957 sq. ft.
$9,400,000

2498 Queen Palm Road
8 beds | 7 baths | 6,177 sq. ft.
$9,075,000

571 Golden Harbour Drive
5 beds | 5.5 baths | 4,469 sq. ft.
$4,575,000

725 NE 71st Street
6 beds | 6.5 baths | 4,924 sq. ft.
$4,350,000

570 Phillips Drive
4 beds | 4 baths | 5,760 sq. ft.
$3,750,000

710 NE 69th Street
5 beds | 5 baths | 3,284 sq. ft.
$3,100,000

1 N Ocean Blvd
3 beds | 3.5 baths
$2,000,000

423 NE 3rd Street
3 beds | 2 baths | 2,127 sq. ft.
$1,685,000

701 E Camino Real 7E
2 beds | 2.5 baths | 1,950 sq. ft.
$1,440,000

2000 S Ocean Blvd #6C
2 beds | 2 baths | 1,236 sq. ft.
$1,220,000

Selling Your House? Your Asking Price Matters More Now Than Ever

There’s no doubt about the fact that the housing market is slowing from the frenzy we saw over the past two years. But what does that mean for you if you’re thinking of selling your house?

While home prices are still appreciating in most markets and experts say that will continue, they’re climbing at a slower pace because rising mortgage rates are creating less buyer demand. Because of this, there are more homes on the market. And in a shift like this one, the way you price your home matters more than ever.

Why Today’s Housing Market Is Different

During the pandemic, sellers could price their homes higher because demand was so high, and supply was so low. This year, things are shifting, and that means your approach to pricing your house needs to shift too.

Because we’re seeing less buyer demand, sellers have to recognize this is a different market than it was during the pandemic. Here’s what’s at stake if you don’t.

Why Pricing Your House at Market Value Matters

The price you set for your house sends a message to potential buyers. If you price it too high, you run the risk of deterring buyers.

When that happens, you may have to lower the price to try to reignite interest in your house when it sits on the market for a while. But be aware that a price drop can be seen as a red flag for some buyers who will wonder what that means about the home or if in fact, it’s still overpriced. Some sellers aren’t adjusting their expectations to today’s market, and realtor.com explains the impact that’s having: “. . . the share of listings with a price cut was nearly double its year-ago level even as it remains well below pre-pandemic levels.”

To avoid the headache of having to lower your price, you’ll want to price it right from the onset. A real estate advisor knows how to determine that perfect asking price. To find the right price, they balance the value of homes in your neighborhood, current market trends and buyer demand, the condition of your house, and more.

Not to mention, pricing your house fairly based on market conditions increases the chance you’ll have more buyers who are interested in purchasing it. This helps lead to stronger offers and a greater likelihood it’ll sell quickly.

Why You Still Have an Opportunity When You Sell Today

Rest assured, it’s still a sellers’ market, and you’ll still get great benefits if you plan accordingly and work with an agent to set your price at the current market value. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says: “Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.” Mike Simonsen, the Founder and CEO of Altos Research, also notes: “We can see that demand is still there for the homes that are priced properly.”

Bottom Line

Homes priced right are selling quickly in today’s real estate market. Let’s connect to make sure you price your house based on current market conditions so you can maximize your sales potential and minimize your hassle in a shifting market.

What's Causing Ongoing Home Price Appreciation?

If you’re thinking about making a move, you probably want to know what’s going to happen to home prices for the rest of the year. While experts say price growth will moderate due to the shifting market, ongoing appreciation is expected. That means home prices won’t fall. Here’s a look at two key reasons experts forecast continued price growth: supply and demand.

While Growing, Housing Supply Is Still Low

Even though inventory is increasing this year as the market moderates, supply is still low. The graph below helps tell the story of why there still aren’t enough homes on the market today. It uses data from the Census to show the number of single-family homes that were built in this country going all the way back to the 1970s.

The blue bars represent the years leading up to the housing crisis in 2008. As the graph shows, right before the crash, homebuilding increased significantly. That’s because buyer demand was so high due to loose lending standards that enabled more people to qualify for a home loan.

The resulting oversupply of homes for sale led to prices dropping during the crash and some builders leaving the industry or closing their businesses – and that led to a long period of underbuilding of new homes. And even as more new homes are constructed this year and in the years ahead, this isn’t something that can be resolved overnight. It’ll take time to build enough homes to meet the deficit of underbuilding that took place over the past 14 years.

Millennials Will Create Sustained Buyer Demand Moving Forward

The frenzy the market saw during the pandemic is because there was more demand than homes for sale. That drove home prices up as buyers competed with one another for available homes. And while buyer demand has moderated today in response to higher mortgage rates, data tells us demand will continue to be driven by the large generation of millennials aging into their peak homebuying years (see graph):

Odeta Kushi, Deputy Chief Economist at First American, explains: “. . . millennials continue to transition to their prime home-buying age and will remain the driving force in potential homeownership demand in the years ahead.”

That combination of millennial demand and low housing supply continues to put upward pressure on home prices. As Bankrate says: “After all, supplies of homes for sale remain near record lows. And while a jump in mortgage rates has dampened demand somewhat, demand still outpaces supply, thanks to a combination of little new construction and strong household formation by large numbers of millennials.”

What This Means for Home Prices

If you’re worried home values will fall, rest assured that experts forecast ongoing home price appreciation thanks to the lingering imbalance of supply and demand. That means home prices won’t decline.

Bottom Line

Based on today’s factors driving supply and demand, experts project home price appreciation will continue. It’ll just happen at a more moderate pace as the housing market continues its shift back toward pre-pandemic levels.