The Market is Detecting A Few Crucial Changes for Home Buyers and Sellers

Boca Raton Realtors Bear Down and a Hot & Cold Real Estate Temperature

Boca Raton’ weather may not have as much impact like the rest of South Florida, but there’s a change in the real estate market bringing up the heat. With the recent news reporting 40° temperatures it almost seems like the weather is predicting a colder market. That’s an exaggeration but here’s what we know that is changing the platform of buying and selling houses for first quarter.

Changes in the FICO Score

While many of our client base doesn’t have an issue with credit problems, new home buyers such as the millennials who are the hottest topic in R.E. right now may find it more challenging to qualify. There’s a good amount of Generation Y and Z looking to buy their first home. With our experience and the many resources, we use, we can assist just about any situation. But we’ll be seeing some people looking for other ways to improve credit scores with the many Fico score changes.

"Credit scoring and reporting companies also recently started factoring in such information as bank account balances and utilities payments to help give consumers with limited credit histories a better shot at getting loans.” ~Realtor.com

Lenders are Becoming More Selective with FICO Score Changes

According to Realtor.com lenders are now reporting a shift in confidence making it more challenging to qualify for home loans. As it always works, the rules will change and so will the results for people looking to buy or sell a home in 2020. But, qualifying for the creditor a mortgage isn’t the only issue that’s arising.

Homes are Selling Even with a Lack of Inventory

On the flip side of the coin, sellers in 2019 report average profits to be $65,000 with a median home sale of close to $300,000. The luxury market remains in question with a lack of inventory for sale on the market. People are holding off selling their home. However, with the many changes arising, some homeowners are looking to sell now or at least list their homes rather than wait. One would assume with the lowest interest rates and a healthy economy, selling would be a breeze. It’s like the one we’re in when it makes the most sense to work with a realtor. Agents are always in the fast track to know who is in the market and who is waiting. When asking if it’s buyers or a sellers’ market, they might just answer it's whatever we make it with the resources at hand?

"If sellers are thinking about moving, now is a great time to sell” ~ Ali Wolf, director of economic research at Meyers Research, in Costa Mesa, CA

Luxury Market is Better Off Selling Now, rather than Waiting

Realtor.com also predict selling now if you’re in the luxury market is even better since last year reflects profit margins at lower housing prices.

Besides the likely hood this is a good time to sell, and the changes made with credit scoring, it’s also good to consider the mortgage rates where people will want to take advantage of getting a lower percentage while they can.

People Expanding Families and Getting Better Jobs are More Likely to Move

Some people are jumping for joy with the 30-year-fixed rate at 3.6%. If that’s not a way to get some attention, how about the 5/1 adjustable dropping 11 basis points? Now, is an excellent time for homebuyers looking to invest in a Boca Raton property. However, most of those looking to move and take advantage of the lowest rates in 20-years are for people looking to expand and grow the family or have got well-paying jobs. Our country club homeowners may not see such an increase in home sales, but of the luxury condo market may see a spike in homeownership with those who want an upscale home or penthouse because of a positive career move.

Another point to note is the economic growth and development our fine city is facing.

'Top Boomtowns in America.’ Boca Raton ranked 20th.  Boomtowns are characterized by prosperity and robust development and are often desirable places to put down roots. The economic growth provides employment opportunities and draws new residents.”~Boca Tribune.

Florida Atlantic University is on the Top Schools List

From having one nation top universities (FAU) to be a place where growth is eminent, you can’t blame people for wanting to move here. Not to mention, the recreational space is phenomenal and those seeking to live a healthy lifestyle can promote with tons of activities. Even though the lower rates may be attractive, these aspects of home buying are not to fall short with buyers in any shape. Furthermore, the job market is flourishing, making the area even more attractive for people wanting to move.

Trains Will Make Commuting Easier

Besides the growing economy, Virgin Trains will head their $12-million-dollar project for the funding of the parking garage to be part of the Brightline additional stops. This will not only make commuting between Orlando down to Miami easier, it will make those looking for transportation more convenient. Most times, people look for housing or to migrate in places where getting to and from jobs suitable.

A Shortage of Housing Makes Prices Go Up and Sellers Happy

If you’ve been considering selling your luxury home or condo, indicators are pointing toward favorable conditions. With a healthy economy, low interest rates and a town providing excellent benefits, you’ll have a nice amount of traffic looking to move. Besides the beautiful landscape, there’s a shortage of luxury homes where many of our sellers are enjoying selling now rather than waiting for a change.

Our local office can provide you with the answers necessary to make your decision whether to buy or sell your Boca Raton home. Let’s discuss your home’s value and a game plan for winning your home sales while the time if right. Our experienced staff will lead you to success with the valuable tools and contacts we use only for our clients. Contact us today to learn more.