The news continues to be bleak for the luxury real estate market in Boca Raton, Delray Beach, and Highland Beach at the end of 2009 and beginning of 2010.
Last fall I wrote a blog post about the Boca Raton Luxury Market for the six months ending September 30, 2009. THis is a followup to that previous post.
I have examined the current state of the market for properties in excess of $1,000,000 for the last half of 2009.
Here are the number of sold properties in relation to current listings for each price band for the last six months:
Here is an illustration of the current month's supply in each of the price bands:
It is very clear from these illustrations that the luxury market continues to be hammered. While the number of current listings in excess of $1,000,000 represent 13% of the current inventory, it only represents 5% of the number of properties sold in the past year. The number of months of inventory on hand (absorption rate) for properties in excess of a million is 43 months as compared to the absorption rate of properties below a million which is 15.6 months. A big difference!
The median price of all properties currently on the market is only $275,000 so it is clear that the upper end is continuing to have pressure and in my opinion there will be some tremendous buying opportunities in the next year in this segment. As many people expect a continuing collapse of the commercial real estate markets, it will continue to be bad news for sellers in the luxury markets, as investors and developers and players in the commercial markets are often buyers and sellers of luxury residential real estate.
I don't mean to sound any alarm bells but am just trying to be realistic. I see the next year as one of great opportunity. There will be terrific deals for people with cash which is sitting earning nothing in the bank.
We will continue to identify and track new opportunities as they arise, and to help sellers and buyers as best we can navigate the choppy waters of the high-end real estate market in Boca Raton, Highland Beach and Delray Beach.
Gloria Singer is the Broker of Boca Expert Realty, a boutique Boca Raton real estate company with a focus on professional service and an unparalleled customer experience. Our select agents are amongst the top performing professionals in the field. Visit www.BocaExpert.com for information on Boca Raton, Delray Beach and Highland Beach real estate and to connect with an expert in the local market.