June 2025 Boca Raton Area Luxury Real Estate 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 June 2025 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.

Boca/Delray Luxury Real Estate Market Summary – May 2025

Single-Family Homes:

The Boca/Delray luxury single-family home market, with a benchmark price of $1,200,000 , is currently a Balanced Market, indicated by an 18% Sales Ratio.

Key performance indicators for May 2025 demonstrate a dynamic market:

• Sales Activity: Total sales increased by 5% year-over-year, from 110 in May 2024 to 115 in May 2025.
   
• Pricing: The median sales price saw a slight decrease of 3%, moving from $2.38 million in May 2024 to $2.30 million in May 2025. Homes sold for a median of 94.04% of their list price. The median sale price per square foot also experienced a 3% decrease, from $646 to $624. 
   
• Market Speed: A notable improvement in market speed is evident, with the median days on market decreasing by 38%, from 71 days in May 2024 to 44 days in May 2025.
   
• Inventory: Total inventory for single-family homes increased by 13% year-over-year, from 554 to 627 units.
   
• Active Price Band: The most active price segment is $2,900,000-$3,499,999, which shows a strong sales ratio of 38%.
   

Attached Homes:

The Boca/Delray luxury attached home market, with a benchmark price of $500,000, also operates as a Balanced Market, reflected by a 17% Sales Ratio. 

Performance highlights for May 2025 include:

• Sales Activity: Total sales increased by 4% year-over-year, from 112 in May 2024 to 116 in May 2025.
   
• Pricing: The median sales price saw a significant increase of 33%, rising from $778,000 in May 2024 to $1.04 million in May 2025. The median sale price per square foot similarly increased by 20%, from $475 to $571. Homes sold for a median of 96.04% of their list price. 
   
• Market Speed: The median days on market saw a substantial decrease of 43%, falling from 47 days in May 2024 to 27 days in May 2025.
   
• Inventory: Total inventory for attached homes increased by 21% year-over-year, from 563 to 683 units.
   
• Active Price Band: The most active price segment is $500,000-$524,999, exhibiting a robust sales ratio of 43%.
   

Overall Market Perspective:

Both single-family and attached luxury home markets in Boca/Delray are currently balanced. While single-family home prices have slightly adjusted downwards, attached homes have seen significant price appreciation. A common trend across both segments is the notable decrease in days on market, indicating a faster sales cycle in May 2025 compared to the previous year. Inventory levels have increased in both categories.

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At the national level:

A MARKET OF CALCULATED MOVES

Luxury Prices Hold Steady as Activity Slows

As we head into the summer of 2025, luxury real estate continues to send a mixed—yet notably stable—signal. Prices are holding firm, even as activity shows signs of hesitation. It's not a retreat; it’s a recalibration.

Despite chatter around a potential pullback, the slowdown has been more tempered than many expected. April’s market volatility had some anticipating sharper declines. Instead, the luxury segment has shown a level of resilience that’s consistent with past patterns: high-end buyers and sellers don’t panic—they pause.

MAY: A TALE OF TWO SEGMENTS

Traditionally, May is a high-water mark for luxury sales. This year, it came with a few wrinkles. Headlines pointed to a 12% drop in pending sales—particularly in condos and townhomes. But once again, the full story is more nuanced.

Single-family luxury homes held their ground. North American data showed just a 2.9% year-over-year dip in single-family sales—versus an 11.9% decline for attached product. Month-over-month, sales of single-family homes actually rose by 8.7%, while condos and townhomes eked out a smaller 0.6% gain.

The divergence isn’t surprising. Today’s high-net-worth buyers are leaning toward privacy, space, and control—characteristics more often found in detached homes. On the flip side, condo and townhome buyers tend to be more sensitive to rates and short-term market conditions. When volatility creeps in, they take a step back.

Inventory tells a similar story. Single-family home supply is up 30.2% compared to last year—but new listings rose just 17.9%. Month-over-month, inventory climbed 6.4%, while fresh listings rose only 2.8%. In the condo/townhome category, inventory is up 23.5% year-over-year, but new listings only rose 4%. Between April and May, condo inventory actually slipped 1.9%, with new listings down over 7%.

Translation: Sellers are being deliberate. Many are testing the waters, holding back, or simply waiting for more stable signals before committing to the market.

PRICES: THE QUIET STORY OF STRENGTH

Even with softer activity, pricing has not wavered. Year-to-date, luxury single-family homes are up 2.2%, while attached units have climbed 1.4%—twice the pace of the broader market. Most major metro areas have seen continued appreciation; others have plateaued or dipped only marginally. The takeaway? Low inventory and continued demand for premium homes are keeping values buoyant.

BEHIND THE CURTAIN: WHAT’S REALLY DRIVING DECISIONS

What’s behind the hesitation? Not fear—strategy. April’s financial turbulence reminded affluent buyers just how interconnected their portfolios are with real estate timing. They’re watching everything: equity markets, foreign currencies, global headlines. But they’re not exiting—they’re just moving more deliberately.

And while luxury real estate still plays its traditional role as a store of wealth, today’s affluent buyer is also comparing opportunity costs. In a world where private equity, structured notes, and alternative assets are chasing higher returns, real estate’s appeal lies in its stability, lifestyle value, and long-term upside—not in short-term speculation.

Simply put, buyers aren’t sitting out—they’re staying selective. They’re looking for the right property, the right price, and the right timing. Sellers, meanwhile, are reading the same signals and deciding whether to list now or wait for a clearer landscape in late summer or early fall.

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