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.
Posted by Gloria Singer on
We have cash buyers that are looking for luxury property but needs to be a "steal" like everybody else. I do know they have the money though. Any thoughts???
Posted by Daniel Statlander on Thursday, October 8th, 2009 at 6:49amHi Dan, thanks for your comment. We also are working with cash buyers looking for steals, and many of these properties are great buys in comparison to prices of two and three years ago. But the buyers looking for steals are also often not realistic about price as well. With several years of inventory in the luxury market, some of these will pop and go for great prices. The trick for buyers is to decide what their "steal" price is and start making good offers. I think if you throw enough out there, some of it will stick. There are fewer distress sales in the high end, but they do exist and for those that can still afford it, there are some great buys.
Posted by Gloria Singer on Thursday, October 8th, 2009 at 7:34amGreat post, very informative. I think a lot of people will find this very useful.Keep post in coming future as well!!!
Posted by perth insulation on Friday, October 9th, 2009 at 8:13amI have cash to buy, and indeed expect to find a great bargain in this stagnant climate, but frankly every property I like is vastly overpriced; so much so that I am unwilling to make an offer because it will appear ludicrous to the seller. I am holding on to my cash and waiting for the sellers to get realistic. I feel certain the prices will never return to what they were. But I am tired of waiting. Any suggestions?
Posted by Genevieve on Wednesday, October 14th, 2009 at 3:22pmGenevieve there are some bargains out there believe me. We are finding and negotiating great deals for our clients. You need a hard working committed Realtor to help you sort through thousands of listings to find your diamond in the rough! It really does matter which Realtor you hire, it can make the difference between closing on a property, or either not closing or having a disastrous transaction if you choose the wrong Realtor. Please call me at 561-866-7584 or my Buyer's Specialist, Karen Rothstein at 561-706-7115 to get started.
Posted by Gloria Singer on Wednesday, October 14th, 2009 at 4:07pmI am considering selling my home in Rhode Island and moving to Boca Raton this summer. Selling my home in RI will probably result in my losing a good sum of money. I have only owned the home for 3 years and have put in many upgrades. Here is my question, if I take a significant loss selling the home in Rhode Island in a poor market, what are the chances that I can make it up with a good deal on a house is West Boca.
Posted by Kimbra Morgan on Friday, November 20th, 2009 at 8:21amKimbra
Kimbra please keep in mind that you are buying and selling in a down market, so your losses in Rhode Island should be more than made up for by buying here in Boca. Please let me know what you're looking for so I can help you out. There are several foreclosure and short sale opportunities in West Boca as well as some motivated sellers. Just FYI our prices have gone down an average of 45% since June 2006.
Posted by Gloria Singer on Sunday, December 6th, 2009 at 6:59pmLeave A Comment