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.
Posted by Gloria Singer on
Dear Gloria,
Posted by Sara Kowal on Wednesday, February 10th, 2010 at 10:59amJust wanted to say hi and let you know that I enjoy checking in with your web site to see what is going on in the "old neighborhood". You should know that I continue to bless your name and thank G-d we turned to you when we did to sell our house. I recognize that there was a lot of Hashgacha Pratit involved but I am just really thankful that you were our "Shlichah B'davar". Hoping that you continue to prosper in this difficult market. Sara Kowal
Sara,
Posted by Gloria Singer on Wednesday, February 10th, 2010 at 11:13amTodah Rabah! I'm glad that you're doing well, it is nice to see Jon occasionally when he comes to town. It's a good think that you sold when you did, I'm glad that I could help and I appreciate your good wishes and referrals.
Gloria
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