Boca Raton Real Estate Forecast for Year-End of 2019
Mortgage rates are continuing to decline, and yet home sales are still down. However, there are some real estate trends happening for Boca Raton, and we’re forecasting an excellent result for the 2019 year-end. Here are some things you may want to note if you’re looking to buy or sell your condo or estate.
Trend One: Recession Talk May Scare Homebuyers
Talks of a potential recession is yet another reason many people are not selling their current real estate. Many homeowners and buyers are apprehensive with the rumors on the rise and with the 2020 election year just around the corner. Although no one can make accurate predictions home sellers are going one extreme to another by selling NOW versus waiting.
Trend Two: Home Shoppers are Still Optimistic and Not As Worried About a Recession
Home shoppers are still optimistic about buying a home and aren’t concerned with a possible recession such as the housing bubble burst in 2008. This being the case, you’ll still find a healthy economic growth and people are again committing to a loan versus renting.
Trend Three: Renting Versus Buying a Home in Boca Raton
Rent is higher than most mortgage payments, and more people are becoming homeowners with ultra-low interest rates. Millennials are becoming more comfortable with the idea of living in their own home rather than spending money, making a landlord wealthy. The shift in luxury condos is becoming more promising for this demographic as many of the younger generations is earning a higher living, but rent is costing them around 35% of their income. In addition, the cost of building new apartment properties is high; the developers must charge more for the monthly fee making rent less attractive to the Gen Y.
Trend Four: Millennials Are More Determined to Buy These Days
In a Boca Raton Tribune article written in July, the journalist points out the shift and trend demonstrate millennials reasoning for becoming homeowners. “For many years, it was more expensive to buy than to rent. It is now more costly to rent. In the surveys, millennials who rent say they are determined to buy a home, in fact, 73% of renter millennials plan to buy a home in the next three years.
Trend Five: Many Millennials Can Afford Buying
With over 66% of the Gen Y crowd setting goals to buy rather than renting, this undoubtedly leads toward a change or trend for Boca Raton housing. Even with the home prices rising this under 35 group continues with encouragement to buy. Also, they frequently can afford more expensive properties sharing the mortgage with their renters or friends. Regardless, the market is shifting due to younger buyers.
Trend Six: The Younger Home Shoppers Want Modern Homes
In addition to the young buying trend, the younger generation likes new, clean and modern designing, in which Boca Raton housing delivers. They also prefer quality over price where many of our 5-star condos meet their standards. Not to mention, the college graduates are wealthier than ever with technology and other trades where they can afford to buy at any location. However, those new homeowners are looking to live closer to beach areas with low unemployment, walkable neighborhoods, and terrific social breweries.
Trend Seven: Home Sellers are Working with Experienced Agents Due to Logic
Prices for Boca Raton housing continue to rise rather than lower, making it harder for buyers to take the homeowner plunge. If you’re looking to sell your home, you may have to take a hit on the price if you want to unload the property sooner. Working with an experienced agent is the most logical as they understand things like market value and how to negotiate. Bear in mind, shoppers are still confident, and there’s always a possibility you’ll run into a sale.
Trend Eight: Homeowners Want to Sell Before a Recession Hits
With a robust economic growth becoming more anxious, and with the trade wars and corporations on tightening their wallets, buyers are holding off. Besides, people are contemplating holding off on their home search if a recession does hit. Regardless, many home sellers are looking to unload their properties before any real shift in the economy.
Boca Raton’s Robust Economy Makes Homeownership More Attractive to Some
In addition to the Boca Raton economy, the unemployment rate is 3.0% with a 3.9% nationwide US average. Besides the residents holding jobs, the US has an income tax rate of 4.6% where Boca has none. Another factor leading to a healthy housing market is that most jobs pay more here, and salaries are almost $20,000 more per year than the rest of the nation. These are key factors leading to a positive result in real estate.
Home Sellers are Preparing for an Economic Storm
Advisors are starting to take steps toward financial health and selling now to have adequacy of savings. Not to mention, preparing for any economic downfall is logical just as we for hurricanes. We brace ourselves for the storm before it hits landfall. Selling your luxury condo or estate can help brace yourself for any rough terrain with the market ahead.
In closing, it's important to note; the current trends can change drastically almost overnight. However, with a stable economic platform, low and declining interest rates, and a new generation wanting to invest in luxury properties, it may make sense to sell now rather than delay. We do recommend working with an experienced realtor to answer your questions. Contact our offices today to learn more.