Property Market Outlook- 2016

The market outlook for the next year is for continued improving conditions.

The median sales price is up and the median number days on market is down by 35%. How does this affect you? As a profession we monitor the number of comparable homes listed and the volume of homes under contract during a normal escrow period.  We are then able to calculate the probable absorption time period of your home (how long will your home be on market). Traditionally, less than 6 months supports a sellers’ market and anything higher brings better bargaining power for buyers.

Expect a healthy growth in home sales and prices, albeit at a slower pace than in 2015. “This slowdown is not an indication of a problem – it’s just a return to normalcy,” writes Jonathan Smoke, realtor.com’s chief economist. “We’ve lived through 15 years of truly abnormal trends, and after working off the devastating effects of the housing bust, we’re finally seeing signs of more normal conditions.” 

New construction and distressed sales are expected to return to more historic levels, and home prices are expected to follow at “more normal rates consistent with a more balanced market.”

It’s time to sell. “Although we are still in a seller’s market, recent statistics showed signs that we are moving toward a more neutral real estate market that favors either seller or buyer. The median sale price for single family homes is leveling, fluctuating between $285,000 and $295,000 for the number of continual months.  The months’ supply of inventory is continuing to inch towards the benchmark of equality.  If you have been on the fence about listing your property in Palm Beach County, now is the time to contact your Realtor’. – Matt Halperin RAPB President.

With the new rules for loan applications coming into play in October, loans for most buyers took longer to close than previously and this is reflected in the slowing of the market. As lender and title companies become more familiar with the guidelines of TRID (Tila Respa Integrated Disclosure) this should ease up.

Cash is still King! The last number of years has seen a significant volume of purchasers paying cash for their property investments; so when asked if there is concern of a crash similar to 2007/8, we have a totally different scenario.  In that situation, many home owners were under water with notable debt to larger banks, whilst today a higher percentage of homes are owned free and clear.

If you are considering buying, there are new properties hitting the market daily, and there are always opportunities of course but we are not in 2010/2012 anymore where the pickings were plentiful. The key is working with a professional Realtor to find available listings that are move –in ready and in affordable price ranges as they can remain hard to come by for many would-be buyers. Be sure to check out my new “Coming soon” feature.

I would like to once again extend my gratitude to my clients for new and continued business. I am both excited and grateful that our team at RE/MAX continues to generate momentum and remain in the top tier of the local property market.

My website www.sueleonard.net  is going through another round of upgrades in order to keep up with customer demand and deliver timely information.

If you would like any further information or particular statistics, please do let me know.Sue@sueleonard.net  sueleonard.net

 

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