October 2023 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 October 2023 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:

A Market of Mixed Messages

The month of September is often considered to be a good barometer for the status of the real estate market’s direction. Traditionally, people returning from their summer hiatus use the next few months to make their real estate transactions, prior to the start of the winter holiday season.

Usually, the September, October, and early November period is the second busiest for the sale and purchase of properties in most U.S. and Canadian markets. In the luxury market the number of sales is also greatly influenced by the affluent who look to purchase secondary homes in either resort markets for winter sports, or summer destinations to escape the upcoming colder months.
So, how are the sales volumes, prices, and inventory levels in September stacking up against traditional norms and the market over the last year?

An initial review shows a much slower market for sales for both single-family homes and attached properties, declining by 4.8% and 1.3% respectively compared to September 2022.
Inventory levels have increased by 6.7% and 17.7% as sales slow, and new listings entering the market have also increased comparatively year-over-year and month-over-month.

Prices remain strong – with a 4.15% growth for single-family homes and only a slight decrease of 0.53% for attached properties year-over-year. While slower sales and increasing inventory would typically indicate a move towards a buyer’s market, the sales ratio figures show that the market is still favorable to sellers. So why does it not feel like it’s favorable to either party?

This current market is an unusual one for sure, because it’s simply not following any of the traditional patterns. Inventory, especially new inventory and the type of inventory available, is one of the significant reasons. While inventory numbers are increasing, 2023 is still recovering from some of the lowest numbers on record, in both the luxury and traditional markets.

According to a recent article in Forbes Advisor, “Inventory is approximately 46% below the historical average dating back to 1999,” says Jack Macdowell, chief investment officer and co-founder at Palisades Group. “We think that it is highly unlikely that the inventory problem will be resolved in 2023.”1

But it’s important to recognize that while there is a noticeable shortage of houses for sale, it’s not a typical seller’s market, mainly because buyers are not willing to settle.

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