Is the US Housing Market In A Bubble? How Will This Affect My Decision To Buy Or Sell My Home In The Boca Raton, Florida Area?

Is Boca Raton, Florida experiencing a housing "bubble?"I

n the previous two Case Shiller Home Price Index press releases, the commentary has surrounded around US home prices and future expectations.  They seem to address the question of whether or not the US housing market is in a "bubble."



David Blitzer, Managing Director & Chairman of the Index Committee is quoted in the March 2015 press release, "I would describe this as a rebound in home prices, not bubble and not a reason to be fearful."

The March 2015 and April 2015 Case Shiller Home Price Index press releases offer some of the committee's rationale.

The March 2015 press release discussed price increases, but being at a "moderated" pace when compared with last year.  Also, there is a discussion about home home prices in the US are increasing at a faster rate than per capital personal income or wages (3.1% and 2.2%, respectively), which suggests further "moderation" in home price gains.  The idea is the pool of home buyers will narrow with price increases outpacing purchasing power.

To further their position, the March 2015 press release states, "consumer debt levels seem to be manageable."  The implication is the consumer is not financially stretched beyond their limitations, suggesting this would not indicate a "bubble."

The April Case Shiller Home Price Index press release goes into consumer expectations in regards to housing.  The press release reiterates the decelerating US home price increases and discussed a national survey published by the New York Fed.  The survey showed consumers expected a 4.1% increase in both home prices and the cost to rent.  The press release pointed out the expectation is below the annual price change of 4.9% since 1975.  In addition, the press release pointed out the real, or inflation adjusted, price change since 1975 is 1.0% per year.  The point, I believe, is that the expectation is at or below the long-term "norm," thus not projecting exuberant enthusiasm for the market.

What does this mean to a home buyer or home seller?  Those that are buying and waiting for prices to sharply decrease, Case Shiller seems to make the argument that it is not likely.  Those who are selling homes and are waiting for a huge price increase, Case Shiller seems to argue that also is not likely.

If you are thinking of selling your home or buying a home in the Boca Raton area, please call me on my cell phone at 561-247-3550.

I take an analytical approach to buying, selling and leasing real estate.  If you are thinking of selling or buying a home, please feel free text me or call me at 561-247-3550.

For free home searches, please text me your name, e-mail address and phone number or visit my Web-site at http://homes.MYsouthFLrealestate.com

Michael Friedman

Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550

An Analytical Approach To Buying, Selling and Leasing Real Estate
http://MYsouthFLrealestate.com

The greatest compliment you can give is the referral of your friends and loved ones

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty

New Construction In Boynton Beach: Valencia Cove-- My Visit And The "Realtor Question"

I visited the new community by GL Homes called Valencia Cove.  It is an age-restricted community in Boynton Beach.  GL Homes was kind enough to host a broker's open and show Realtors around the community.  We were privy to information as well as a nice spread of food, drinks, snacks, etc, set up for us.




Along with the buyer's agents the crowed was intermingled with people looking at homes.  I met two women who were in another Valencia community nearby who explained they were just looking around.  They asked me why the brokers were at the community.  And then, the question on most people's mind, I'm sure: "why would we need a broker in a new community anyway?"

I just smiled politely and explained that they would probably want someone working on their behalf when purchasing a home.  The salespeople are very nice, but they work for the builder, I work for the buyer.  I explained the commission is baked into the price and it is being paid regardless.  If they are out of town, I will help buyers by taking pictures of the ongoing construction in each phase of build out.  I would help my customer select the extras that will add the most value to the home for re-sale, etc.

The reply from the two women was with a smile, "thanks, we were just curious, because we are just looking and not interested in leaving our current Valencia community." I have seen many of these communities, both new and in existence.  When customers tell me what they like, I can eliminate or tell them which communities are best suited for them.  I get verification whether we are on the correct track or not by setting up visits and getting feedback right on the spot.

I take an analytical approach to buying, selling and leasing real estate. I work with families, people looking for a rental home, a second home, investors, etc. As a Realtor, I am aware of trends in the domestic market, as well as in the local markets throughout South Florida. If you are thinking of selling or buying a home, please feel free text me or call me at 561-247-3550.

For free home searches, please text me your name, e-mail address and phone number or visit my Web-site at http://homes.MYsouthFLrealestate.com

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550

An Analytical Approach To Buying, Selling and Leasing Real Estate
http://MYsouthFLrealestate.com

The greatest compliment you can give is the referral of your friends and loved ones

Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty