Today's hot news: Is the seller's market officially over?

Hi everybody, Joe Hillner with Your Home Sold Guaranteed Realty, where we guarantee the sale of your home or I'll buy it! 

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:

This past week, 60 new listings, so so, and ranging in price from $330K to $45M - holy guacamole!  17 homes back on the market, while 82 homes listed took a price decrease, the most I've seen in years, and 10 sellers raised their asking price.  And  worse than the last couple of weeks, only 25 different properties under contract, and 22 going pending, even worse than last week. 24 homes were unsuccessful in selling and were taken off the market or the listing expired outright.  And another poor week for sales with 51 homes sold, ranging from $395K to $7.95M!

Next up, Condos and Townhomes:

72 new listings, pretty decent,  and ranging from $125 Grand to $2.6 Million.  20 units came back on the market, 57 properties with a price decrease, and 5 sellers with an increase.  And another light week with 37 different properties under contract, and just 30 going pending,  And 28 condos or townhomes were unsuccessful in selling and were taken off the market or the listing expired. Only 47 closed sales this week, a bad week, and ranging in price from $85K to $945K.

Here's what's making news right now.

4 out of 5 metro markets around the US experienced double digit price gains in the 2nd Qtr.  Eighty percent of metro markets—148 of 185—saw double-digit, annual price appreciation in median single-family existing-home sales prices, and that's compared to 70% in the previous quarter.  

The national median single-family existing-home price rose 14.2% annually to $413,500, surpassing $400,000 for the first time. And, no surprise here, housing affordability significantly declined as the monthly mortgage payment on a typical single-family home with a 20% down payment skyrocketed by nearly a third from the first quarter of this year and by half from one year ago.

Housing unaffordability has become the new normal in our area.  The typical buyer needs at least $100K for a down payment and closing costs - well out of reach for many people.  But what are they supposed to do when rents have skyrocketed 30% or more in the last year and there is so little available?

The median sale price of single family homes in Boca was up 13% in June vs a year ago, to just under $1M.  Kinda crazy when 13% seems like not much, right? But get this, the average sales price in June was just over $1.7M, unbelievable!

Despite that, what we are seeing is a lot less volume.  Sales were down 40% in June vs a year ago, wow!  Inventory is up nearly 120%, from 1.6 months to 3.5 months of supply.  But that's still well below the 5.5 months we need for a market in equilibrium.  That being said, with days on market going up rapidly, houses sitting on the market longer, and new homes coming onto the market, it may not take long for the market to flip over on us, and it could then become a buyer's market.

If that happens, all bets are off and we could see the market correction everyone has been fearing for so long...