Consumer Confidence Is Rising - Real Estate In Boca Raton

Consumer Confidence Is On The Rise 

Good news on the horizon, unemployment rates are falling, consumer confidence is up, and consumers are spending more money now because they feel more secure in their jobs. While interest rates are climbing, they are still low and home prices continue to be affordable. Boca Raton interest rates are hovering around 4.875 to 5.25% and are still historically low. At the peak of the housing bubble, rates for a 30 year fixed mortgage were 6.76%. For those of you who remember, interest rates were at double digits in the 1980’s and did not start falling until after 1991. Statistics show that what matters most to home buyers is affordable housing, job security and interest rates in that order. Although if interest rates were to rise over 6% that may prevent some home buyers from being able to afford their mortgage payments and require them to put down a larger down payment.

The median sales price for a Boca Raton home during the period November 10, 2010 through January 11, 2011 was $185,000. To give you an idea of Boca Raton average listing prices for the week ending February 9, 2011, homes in the 33428 zip code reflect an average list price of $226,730, zip code 33424 reflects an average list price of $94,958, zip code 33434 reflects an average list price of $240,302, zip code 33426 reflects an average list price of $150,841 and zip code 33483 reflects an average list price of $1,386,490. There is an abundance of inventory to choose from in all Boca Raton zip codes, and sellers are motivated and are pricing their homes to sell in order to compete with bank foreclosure REO’s and short sales.

The number one factor that is keeping some first time home buyers on the sidelines is coming up with a down payment. Many sellers are offering seller financing so you should explore all financing options. While foreclosures are keeping Boca Raton and surrounding area prices down, qualified buyers are able to great a great loan with favorable terms from their lender to purchase their dream home or investment property. The market is turning to a more “normal” environment now. So if you are in the market to purchase a Boca Raton home or to sell your existing property, please contact us today.