September 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 September 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:

Trends for the Fall/Winter

In a continuation of last month’s report, we take a deeper dive into the upcoming trends for the rest of 2023 and early 2024, especially as the market has seemingly settled into a new norm. 

In general, the market remains statistically favorable to sellers mainly due to the continued lack of inventory. However, buyers, especially those looking to purchase with cash, recognize that the current market does now offer more opportunity as well as some additional negotiation leverage.

Despite the significant drop of demand and sales in the latter part of 2022, the first eight months of 2023 showed an upward trajectory for both home prices as well as sales for single family homes. Attached home prices saw more variation, but the volume of sales also increased. Month-over-month between January and June, sales increased.

While they dipped in July, typically a slower month as people escape for vacation, August’s figures show an uptick in demand. 

Although sales and prices have not returned to the same heights as the first quarter of 2022, which was probably the top of the market in terms of price and demand, the current trajectory signifies a steady demand for luxury properties. This bodes well for the upcoming fall/winter market, especially when compared to the same period in 2022.

Pricing Trends

Experts are predicting that home prices will continue to rise, at least during the rest of 2023, but notably at a considerably more moderate pace.

Pricing is still being controlled by lower-than-average inventory levels, which itself has become a major driver of the market’s status. While it’s predicted that interest rates are likely to fall, albeit not until late 2024, it still seems unlikely that prices will decline as higher demand will offset any negative increases in inventory levels.

Most analysts and economists predict, according to a report from Norada Real Estate Investments, that over the next five years, prices will remain either flat or will only experience a modest decline. Paired with more robust lending standards, no one anticipates a similar price crash to the one that occurred in 2008.

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