July 2024 Boca Raton Area Luxury Market Report from Jean-Luc Andriot and The Institute for Luxury Home Marketing

As I am a member of The Institute for Luxury Marketing, I thought I would share with you their July 2024 report for Boca Raton - Delray Beach.

It is your guide to a general analysis on the trends and comparative data on the top-residential markets in the Boca Raton - Delray Beach area.

Statistics are separated between single family homes and condominiums / townhomes in Boca Raton - Delray Beach.

At the national level:

Mid-Year Review of 2024

This month, we evaluate the luxury real estate market at the six-month mark and where it lies at the end of June 2024.

Statistical Review

The most significant trend, after a slow start to the year, is that the North American luxury real estate market has, for the most part, returned to a seller’s market.

June’s statistics reveal that out of the 150 single-family home markets researched by The Institute, 95 are seller markets, 32 are balanced (neither favorable to sellers nor buyers), and only 24 favor buyers.
Notably, 11 of the buyer markets are either winter resorts or destinations, where real estate sales are typically weaker during the summer months.

The attached market shows an even stronger bias towards sellers. Out of the 103 reviewed, 59 are seller markets, 21 are balanced, and 23 are buyer markets. While June 2024 saw a decrease in sales compared to June 2023—approximately 1.7% for single-family homes and 6.8% for attached properties—sales have surged by 174.5% and 107.7%, respectively, since January 2024. Compared to May 2024, single-family home sales rose by 7%, although attached property sales fell by 13.8%.

Despite not expecting a continued increase in monthly sales during July and August, typically slower months in the real estate calendar, these figures indicate that the overall luxury market across North America is maintaining its strength, especially in terms of demand.

Inventory levels continued to climb, with single-family homes increasing by 34.7% compared to June 2023 and attached properties by 47.2%. More importantly, new inventory each month has also risen, with June continuing this trend with a 23.5% increase for single-family homes and 26.3% for attached properties compared to last June. These factors have been crucial in enhancing sales opportunities over the past six months, despite inventory levels still being below traditional norms.

However, low inventory remains a challenge in many luxury markets, with sellers hesitant to list their homes due to high interest rates. Buyers, in turn, have become very specific in their expectations and are willing to wait for the right property. This has resulted in a steady rather than volatile market.

Some luxury properties have faced downward pressure on prices, allowing buyers more opportunities to negotiate terms such as repairs or closing costs. Nevertheless, as of June 2024, the median sold price for single-family homes increased by 2.0%, and for attached properties by 2.9% compared to June 2023.

Price consistency indicates that the luxury market is still favorable to sellers. Despite discussions about a lack of sales, the sold price-to-list price ratio remains close to 100%. In June, single-family homes sold at an average of 99.09% of their list price, while attached properties sold at an average of 99.10%.

Considering demand, sales, and prices during the first half of 2024, the North American market has demonstrated an increasing resilience that few predicted at the start of the year.

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