Homes Are Selling FAST

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Buying a House? Expect a Bidding War!

Are you in the market to buy a home in Boca or Delray Beach or any of the nearby cities? Let us tell you it is a challenge — Demand is increasing, but there is very little available on the market. The number of listings has gone down, and the limited supply is swiftly snatched up by the fervent demand.

In our office and across the country, we are seeing eager prospective homeowners and investors buying property as soon as it hits the market, in some cases, without even seeing it.

Now, it is not uncommon for a home to get off the market in less than 30 days.

SALES on the FAST LANE: HOME SALES in APRIL 2013

  • NORMAL – 3-4 Months (90-120 Days)
  • March 2013 – 62 Days
  • April 2013 46 Days

This speed is comparable to the Boom, but there is not much concern for a bubble since back then, it was all easy money, too many loans given on a lenient basis, whereas now, loan standards are more strict.

What we are seeing are qualified mortgagor (borrowers) and several cash buyers competing for the sale. Sellers often have at least one offer within the first few hours of placing their property on the MLS,

Where are the builders? Why aren’t we seeing an upsurge in construction in Boca and Delray? There are a few communities springing up, but not many single family homes. They’re actually putting the brakes on and letting prices rise.

 

If you have any questions, talk with us! We’re available to answer any and all questions, and we’d love to have you as a client.

Our office is located in Boca Raton, off of Yamato & Federal.

561 208 1382

 

Increase in the Supply of Homes for Sale – March 2013

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Existing home sales rose modestly in February and more people listed homes for sale, the first sign of a potential turnaround in a supply crunch in some markets.

Home sales rose 0.8 percent in February from January to a seasonally adjusted annual rate of 4.98 million, 10.2 percent above last year’s level, the National Association of Realtors said Thursday.

The sales rate was the highest since November 2009, when a federal tax credit propped up home sales.

A more important number in the report may be the supply of homes for sale. That rose to 4.7 months, at the current pace of sales, up from 4.3 months in January, NAR says.

The increase in supply is the first of any real significance for more than two years, says Paul Diggle, economist for Capital Economics. While too soon to say that the trough in supply is past, “We get the sense that it’s close,” he says.

Historically, Realtors have considered a six-month supply to be balanced between buyers and sellers.

Even if the inventory crunch is on the verge of easing, “it’ll be years, not months,” to get it back to more normal levels, says Jed Kolko, chief economist for real estate website Trulia. That’s because inventory is so low and new home construction, while picking up, hasn’t yet caught up to the pace of new household formation.

February’s uptick in supply “may be the first hint of a trend or it may be a blip,” Kolko says.

Much of the increase in total inventory, up almost 10 percent to 1.94 million homes, was seasonal, says Patrick Newport, economist at IHS Global Insight. Typically, inventory rises about 6 percent in February.

Even with the increase, February’s inventory of single-family homes for sale was at an 18-year low, he says.

The low inventories are adding up to rising prices, multiple offers and a slowdown in sales in some markets.

In February, California’s single-family home sales were down almost 6 percent from a year earlier, in part because of listing shortages, the California Association of Realtors says. California’s supply of single-family homes for sale stood at 3.6 months in February.

In parts of the Silicon Valley and San Francisco, more homes are selling even before they hit the multiple listing service, says Rick Turley, president of Coldwell Banker in the San Francisco Bay Area.

He estimates that off-market sales are running at 25 percent or more in Palo Alto and Menlo Park. Without such tight inventories of homes for sale, they’d be 2 percent to 4 percent of sales, he says. Multiple offers are also common.

Copyright USA TODAY 2013

 

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