Boca Real Estate Market to Undergo Changes
Should those looking to take out their first Florida home loan spring into action? After all, The Boca Raton real estate market will noticeably slow down next year, in line with the other areas of the country, according to many experts. Prices should finally show some depreciation.
Most notably, Boca Raton realtor Diane Clark is making thise prediction. The founder and owner of Boca Raton Realty, she stated the following:
“Not only is foresight of real estate trends valuable to potential buyers, but real estate investors also find more tangibility in property over stocks and real estate remains a very important part of any investor’s portfolio.”
Based upon what she has observed, Clark remarked that home prices in Boca will begin to decrease over the next 12 months. Mortgage rates will also go up to slightly balance the decreased activity in sales.
“Sellers can expect to have their homes on the market for a greater length of time,” Clark said. “Instead of getting a contract in three days, they might take three months to sell, which has previously been the norm.”
In addition, property appreciation will level off to a more normal pace after several years of fast growth.
“A few years ago, you could have bought a house for $120,000 that would be valued at over $300,000 today,” Clark said. “Starting next year, that rate of appreciation won’t be as rapid.”
For Palm Beach County in general, Clark expects a strong market for people buying second homes because they will have more money to invest in them.
Even with the hurricanes that occurred this year and in 2004, Clark feels the area’s economic strength was able to absorb the blow and rise above it. She added that this trend will hold for the future.
“Speaking of hurricanes, realtors should be more knowledgeable about new construction and the various developers who are handling it so they can pass that information along to customers,” Clark said. “People are becoming concerned about whether new homes will be able to withstand strong winds.”
The new trend of taking apartment rentals and converting them into condominiums will increase for Boca and the rest of Palm Beach, according to Clark.
Buyers should be cautious, though, when purchasing condo conversions because certain promised features may not materialize.
“I’ve heard stories about how the companies responsible for conversions will say they’ll put in covered parking or an alarm system. A year or so later, these things are still not there,” Clark said. “You just have to be careful before investing in them.”
In the end, Clark points out that customers are becoming more knowledgeable about Florida real estate and will expect a higher degree of service.
A large part of this knowledge base is solicted from the Internet. With insight into Florida home loans at their fingertips, prospective buyers have an advantage they couldn’t have enjoyed a decade or so ago.
