MikeInBoca Blog

  Video Link :  Mike In Boca Minute 04 27 2022 Single family homes in Palm Beach County had a median sales price of $541,000 in March 2022; this was up 23.0% over the previous year, according to the Florida Realtors.  The median price for townhomes / condos was $294,000 in March 2022, according to the Florida Realtors.  The year-over-year increase was an impressive 20.0% in March 2022.  “Buyers and sellers in Florida in March continued to see rising mortgage rates, a very limited supply of for-sale homes and rising prices,” said 2022 Florida Realtors President Christina Pappas, vice president of the Keyes Family of Companies in Miami. Homes continue to sell quickly with homes selling at a median of 10 days to contract in Palm Beach County during March 2022.  “Now more than ever, consumers can benefit from the expertise of a local Realtor, who can guide them through current market conditions,” said Florida Realtors President Christina Pappas, vice president of the Keyes Family of Compa

You can view this in a video format Mike In Boca Minute 04 20 2022 I recently submitted an offer for a customer to purchase a home. The customer is a solid buyer; however, the home buyer is getting a loan and is bidding against cash offers. In order to be competitive, the potential buyer offered a cushion on the appraised value in order to entice the seller. Unfortunately, the home buyer did not get the property; however, it was necessary in order to be considered, in my opinion. A recent article highlighted this trend. The article described “home appraisal gaps” as being common despite mortgage rates rising. Thus, pushing prices above the appraised value. Corelogic reported 16% of homes sold in January and February 2022 were for more than their appraised value. Corelogic reports this is an increase from 15% of sold homes selling for above appraised value during 2021. The historical norm is 7% above appraised value, according to Corelogic.  The main reason seems to be low inventory w

Readers of my weekly newsletter are aware our local real estate prices continue to go upward. Sequentially, prices have been climbing about more than 1% or so each month. This is important information for both my home sellers and home buyers. As sellers, we want to price into the direction of the local market. Home buyers need to realize the flow of prices and make their offers accordingly, in order to meet the expectation of home sellers in the current market. Both my home seller and home buyer customers are curious as to when the market may take a turn. The mortgage rates are climbing and prices are appreciating, which could cause the real estate market to slow down. A recent report by Redfin might indicate prices are beginning to peak or perhaps just slowing down price increases. So far from the four weeks ending April 3, 2022, 12% of sellers dropped their prices compared with 9% a year earlier, according to Redfin. Price reductions are still rare, however, Redfin reports the number