The sales of luxury properties in the Boca Raton, Highland Beach and Delray Beach real estate market continues to stagnate. I have prepared a couple of graphs which illustrate the great amount of unsold inventory which is on the market in the over one million dollar price ranges. This segment represents approximately 13% of the total listings on the market. For purposes of this article, I have examined all listings in excess of one million dollars in Boca Raton, Highland Beach, and Delray Beach.
Here are the number of sold properties in each price band in the past six months:
Here is an illustration of the current month's inventory in each price band. Please keep in mind that the average for all price ranges in Boca Raton, Highland Beach and Delray Beach is 13 months supply. So it is clear that the luxury segment has been deeply hurt by the real estate crisis. This is partly due to the fact that credit has tightened to such a great extent, especially for jumbo non-conforming mortgages. In addition, many of the luxury properties in our area are purchased as second and third homes, and because of investment losses including to Madoff, many potential owners of luxury properties are no longer in the market. If you are a seller trying to sell in this market, you can see that there are several years worth of inventory and it will take a superb marketing effort and aggressive pricing to sell your luxury property in this market. Please call me if you would like to discuss my luxury marketing approach.
Here is an illustration of the number of month's supply in each price band. Note that there is over a ten year supply of homes in the $10,000,000 plus price range! If you are able to take advantage of this market, now is a great time to buy as it is a very strong buyer's market in the upper price ranges.
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.