Boca Raton's June housing numbers show a growing negative trend

There was limited positive news in Boca Raton’s June housing report when compared to the same time period in 2018, according to the Realtors of the Palm Beaches and Greater Fort Lauderdale (RAPB+GFLR).

The lone bright spots in single family key metrics for June came in a 3.6 percent increase in the median sales price, $475,000 in June of 2019 compared to $458,700 in June of 2018, and a 3.7 percent increase in the average sales price – $697,004 in June 2019 against $672,417 in June of 2018.

When it came to the townhouse/condo market, the only positive takeaway was a 7.2 percent increase in the median sales price, $230,000 in June of 2019 against $214,500 in June of 2018.

After that, it was virtually all downhill.

The biggest drop off in the Boca Raton single family market came in closed sales, where there was a 17.7 percent drop – 223 in June 2019 compared to 271 in June 2018. Another negative note was struck in the overall dollar volume for June 2019, $154,832.865 – that number was $181,553,030 in June of 2018, representing a 14.7 percent decrease.

While a continuing drop in inventory in both markets is playing against the buyer, the RAPB+GFLR pointed to a possible upcoming Federal rate cut that could help the overall housing market.

“In terms of relative balance between buyer and seller interests, residential real estate markets across the country are performing well within an economic expansion that will become the longest in U.S. history in July,” the RAPB+GFLR report states. “However, there are signs of a slowing economy.

“The Federal Reserve considers 2.0 percent a healthy inflation rate, but the U.S. is expected to remain below that this year. The Fed has received pressure from the White House to cut rates in order to spur further economic activity, and the possibility of rate reduction in 2019 is definitely in play following a string of increases over the last several years.”

Other single family stats from the RAPB+GFLR report:

• Percent of original list price received drop .4 percent – 91.6 percent in June 2019, 92 percent in June 2018
• Median time to contract increased 2.5 percent – 81 days in 2019, 79 days in 2018
• Pending sales dropped 8.8 percent – 198 in 2019, 217 in 2018
• New listings decreased 12.2 percent – 317 in 2019, 361 in 2018
• Inventory of homes for sale dropped 13.9 percent – 1,150 in 2019, 1,336 in 2018
• Months supply of inventory was down 14.9 percent – 5.7 months in 2019, 6.7 in 2018

The biggest disappointment in the townhouse/condo market came in the number of closed sales – 254 in June 2018 against 296 in June of 2018, a 14.2 percent decrease.

Like the single family home market, the inventory of townhouse/condos for sale was down 11.6 percent – 1,073 this year compared to 1,214 in June of 2018.

Other townhouse/condo stats from the RAPB+GFLR report:

• The average sales price dropped 2.5 percent – $299.036 in June of 2019, $306,575 in June of 2018
• Overall dollar volume was off 19.3 percent – $75,656,310 in 2019, $93,794,173 in 2018
• Percent of original list price received was down .5 percent – 90.8 percent in 2019, 91.3 in 2018
• Median time to contract increased 11.6 percent – 77 days in 2019, 69 days in 2018
• Pending sales were off 7.9 percent – 209 in 2019, 227 in 2018
• New listings were down 11.6 percent – 314 in 2019, 340 in 2018.
• Months supply of inventory dropped 9.6 percent – 4.7 months in 2019, 5.2 in 2018

According to Market Watch, the sales of homes previously owned decreased 1.7 percent in June nationwide. However, new home sales for June were up 7 percent, according to the Commerce Department, with most of those sales taking place in the West.

For more information on single family, townhouse/condo housing and commercial properties in Palm Beach and Broward counties, contact Petruzzelli Real Estate at the 2325 N. Ocean Blvd. (A1A) office in Boca Raton or call them at 561.362.8413.