Boca Raton's July home sales report shows increase in closed sales

Boca Raton’s July closed sales – both in the single family and townhouse/condo market – showed sizable gains in a year-over-year report, according to the Realtors of the Palm Beaches and Greater Fort Lauderdale (RAPB+GFLR).

There was a total of 260 single family home closed sales in July, compared to 231 for the same month in 2018 – a 12.6 percent increase. In the townhouse/condo category, the increase was 8.5 percent, as 255 units sold this July against 235 in July of 2018.

The biggest gain in July came in the overall dollar volume in single family closed home sales. Last month, $186,468,762 came from those 260 sales, compared to $148,018,326 in July of 2018 – a whopping 26 percent gain year-over-year.

But despite the increase in the number of closed sales, a troubling sign continues when it comes to new listings coming on the market – which many feel is keeping prices high. In July 2019, single family home new listings were down 8.7 percent (304) – against 333 in 2018.

And while the Federal Reserve lowered interest rates for the first time in many years in July, it may not be enough to offset the dwindling number of available single family homes for sale.

“During the record-setting, 121-month economic expansion, the unemployment rate has dropped from 10 percent in 2009 to 3.7 percent, yet many consumers continue to struggle financially,” the RAPB+GFLR report states. “Low mortgage interest rates have helped offset low housing affordability, but high home prices are outpacing median household income growth.

“In a move to stoke continued economic prosperity, the Federal Reserve reduced the benchmark interest rate by a quarter point to about 2.25 percent, marking the first reduction in more than a decade.”

Other single family stats from the RAPB+GFLR report:

• Median sales price increased 7.9 percent – $483,000 in July 2019, $447,500 in July 2018
• Average sales price increased 11.6 percent – $717,188 in 2019, $642,905 in 2018
• Percent of original list price received increased .7 percent – 92.3 percent in 2019, 91.7 percent in 2018
• Median time to contract dropped 1.3 percent – 76 days in 2019, 77 days in 2018
• Pending sales dropped 11.2 percent – 182 in 2019, 206 in 2018
• Inventory of homes for sale dropped 17.2 percent – 1,099 in 2019, 1,328 in 2018
• Months supply of inventory dropped 19.4 percent – 5.4 months in 2019, 6.7 months in 2018

The townhouse/condo market actually showed a 4.8 percent increase in the number of new listings year-over-year, as 305 units came on market this past July, compared to 291 in 2018.

Also up was the overall dollar volume, $64,438,571 in 2019 against $60, 997,134 in 2018.

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

• Median sales price increased .9 percent – $217,000 in July 2019, $215,000 in July 2018
• Average sales price dropped 1.9 percent – $255,708 in 2019, $260,654 in 2018
• Percent of original list prices received dropped .7 percent – 91.6 percent in 2019, 92.2 percent in 2018
• Median time to contract increased 6.2 percent – 69 days in 2019, 65 days in 2018
• Pending sales were down 9.8 percent – 212 in 2019, 235 in 2018
• Inventory of homes for sale was down 11.7 percent – 1,014 in 2019, 1,149 in 2018
• Months supply of inventory was down 10.2 percent – 4.4 months in 2019, 4.9 months in 2018

Nationally, new home construction was down 4 percent in July. However, permits to build additional properties increased 8.4 percent, according to the Commerce Department.

Also factoring into the equation is the on-going trade dispute with China, which has raised the price of some building materials.

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.