Just what we need, another reason for homeowners to sit tight and not sell their homes! 

Hi everybody, Joe Hillner with Your Home Sold Guaranteed Realty, where we guarantee you a cash offer on your home within 24 hours! 

Ok, so every week, I share market data to keep you informed with the local real estate market.  
Here is this week’s Boca Market Watch.

First, Single Family Homes:

71 new listings, very nice, and ranging in price from $399K to another one at $24.5M.  Sweet!
24 homes back on the market, while 26 homes listed took a price decrease, we've been seeing the price decrease numbers start to creep up the last few weeks, and 11 sellers raised their asking price.  And  a very light week with 35 different properties under contract, and 26 going pending, probably due to the Passover and Easter holidays.  19 homes were unsuccessful in selling and were taken off the market or the listing expired outright.  And another light week for sales with 43 homes closed in the past week,  ranging from $295K to $4.175M!

Next up, Condos and Townhomes:

64 new listings, so so, and ranging from $115 Grand to $2.75 Million.  
19 units came back on the market, 14 properties with a price decrease, and 12 sellers with an increase.  And another good week with 45 different properties under contract, and 45 going pending,  And following the recent trend, only 9 condos or townhomes were unsuccessful in selling and were taken off the market or the listing expired. 87 closed sales this week, that's a good week, and ranging in price from $75 K to $3.75M.

Here's what's making news right now.
About half of homeowners with a mortgage have a rate under 4% – significantly below today’s rates of 5% or more.

Those super low rates could incentivize homeowners to stay put in their homes longer. They may not want to give up an ultra-low rate – many of whom snatched up a rate below 3% over recent years

A recent analysis by Redfin calls it a “lock-in effect” as one factor that may contribute to a decline in home listings moving forward.

The 30-year fixed-rate mortgage averaged 5% last week, the highest rate in more than a decade, according to Freddie Mac. Since the beginning of the year, mortgage rates jumped by 1.8 percentage points and added about $400 to the average monthly mortgage payment for a median-priced home, according to the National Association of Realtors®.  

Certainly not great news for buyers, but if you're thinking about selling, that might give you pause.  Potential sellers are already skittish because of the lack of replacement options.  And to face the prospect of paying a substantially higher rate than they may be enjoying currently, well that could be enough to prevent them from listing at all, ugh!

But, it might not be all bad news according to Redfin.  Higher mortgage rates may already be putting a damper on home listings, but they’re also curbing the insatiable homebuyer demand for these listings. That slowdown in demand may cause homes to stay on the market longer, in effect giving buyers more options to choose from. Overall, that could mean housing inventory actually gets better, not worse.  Wouldn't that be welcome!

Mortgage purchase applications fell 6% year -over-year during the week ending April 8. And market indexes that reflect home touring activity also have shown a decline recently.  So this could be the early signs of a turn in the market.  And then again, maybe not, lol

Rising rates are always a shock at first, but at the end of the day, people still have to move.  Some sellers will have to adjust their expectations and understand they may not be able to afford the same house they could have two years ago.  But the flip side is, they'll be cashing out with a ton more equity from the home they're selling, and that has to soften the blow somewhat.

If you're thinking about selling, but you're afraid that you'll end up homeless, you owe it to yourself to work with an agent that has solutions for every situation.  For example, we give sellers a written guarantee that they'll be able to stay in their home for up to 90 days post sale, rent free, giving them plenty of time to find and purchase the next house.  If you'd like more details about this amazing benefit, just give us a call at 954-799-6867.