Today's top story: Buyers are sitting on the sidelines waiting for prices and rates to come down. Is that a winning strategy?

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, 63 new listings, pretty good, and ranging in price from $496K to $45M, holy guacamole! 17 homes back on the market, while 46 homes listed took a price decrease, and 4 sellers raised their asking price. And a so so week, with 39 different properties under contract, and 23 going pending. 24 homes were unsuccessful in selling and were taken off the market or the listing expired outright And a decent week with 36 homes sold, ranging from $390K to $9M!

Next up, Condos and Townhomes:

85 new listings, not bad, and ranging from $135 Grand to $10.75 Million. 16 units came back on the market, 74 properties with a price decrease, and 3 sellers with an increase. And a little better week with 49 different properties under contract, and 41 going pending! 26 condos or townhomes were unsuccessful in selling and were taken off the market or the listing expired. 37 closed sales this week, not good at all, and ranging in price from $155K to $2.1M.

Here's what's happening right now.

I speak with buyers all the time, and many of them are simply sitting on the sidelines. Some are looking at homes, but they lack motivation to pull the trigger on a contract. That's because they are of the belief that rates and prices are going to come down significantly.


The Federal Reserve's decision to keep interest rates at current levels will play a major role in opening up the buying market, reducing competition for existing homes. Also, the supply chain issues that affected the construction industry in previous years are being eased, leading to an increase in the number of new homes in the market.

Aside from these macro-level reasons, homebuyers will also benefit from several other factors this year. Firstly, the mega-high prices that characterized the housing market in 2020 and through early 2022, have plateaued, and many sellers are now more realistic about the pricing and condition of their homes. Secondly, the Federal Reserve is slowing down its policy of substantial interest rate increases, which means buyers can now purchase homes at a lower rate.


But that's not enough to push us into a market correction. There were a large number of buyers that were simply forced out of the market by the high prices and rates, so there's a ton of pent up demand. Those individuals still want to purchase a home. And with rental rates up 30% the last two years, they are tired of getting hammered with every new lease.

With the pandemic now under control, buyers will have an opportunity to negotiate again in 2023. The spike in home prices during the pandemic was not sustainable, and as the market returns to normalcy, sellers will need to become more realistic. Another factor that will play in favor of homebuyers is the changing residential market tastes. The condo market is expected to return in full swing, and with life as we knew it returning, people are drawn back to urban dwelling, especially with the affordable prices of condos compared to single-family homes.

Finally, the stock market, especially the tech-heavy NASDAQ, has seen a significant rebound this year, which is instilling a certain level of confidence in consumers and fueling a rebound in the real estate market.

So does all that mean this a good time to be sitting on the sidelines and waiting for the bottom to fall out of the market? Probably not. Prospective homebuyers are advised that with the unabated flood tide of new residents coming in to our state, that it seems more likely that the market will rebound rather than slip into a correction. If that's true, buyers should be prepared to make their dream of homeownership a reality, and soon. This includes saving money, making all monthly payments on time to protect their credit, and shopping around for mortgage offers from different lenders to find the most affordable option. If one misses this opportunity, you may never end up owning a home.

And in related news, beware of a new scam that is out there. If you are buying a home and are shopping around for insurance, you know that it can be frustrating and expensive. Don't get misled by internet schemes by entities masquerading as Citizens Insurance “selling” fictitious insurance products via the internet, notably through a website that appears to be operated by Citizens. The fake Citizens websites typically ask for credit card or other personal information under the guise of issuing a new policy or paying a claim.

Citizens does not sell automobile insurance policies, and it doesn’t sell property insurance directly over the internet. There’s only one way for you to secure a Citizens property insurance policy, and that’s through a licensed insurance agent.