Boca Raton Real Estate Market Report (Summer 2023)

boca raton real estate market report summer 2023

Boca Raton is one of two centerpieces of Palm Beach County, with the other being its namesake city. This magnificent luxury destination has proven to be a sustainable and accelerating real estate market, with more growth on the horizon. Following the extreme circumstances of 2020 and the market fallout that followed, we're rounding up what should be a responsive but stabilizing year after a rip-roaring ride through real estate. At this midsummer point in 2023, it's time to take a look at Boca Raton Real Estate and the changes that we've seen, and how the numbers reflect our on-the-ground observations.

All data is sourced from FlexMLS and compares the current 6-month period with the previous year.

large crane building condo at sunset

NEW CONSTRUCTION HOMES AND CONDOS IN Boca Raton

Boca Raton has been at the epicenter of massive growth throughout South Florida since the post-2020 acceleration. The population has grown by over 13,000 people since the 2010 census and continues its meteoric growth. To provide for this unyielding expansion, Boca Raton has continuously developed its western corridors and beachfront condos, including new additions like Lotus Palm, Alina 210 and 220, The Royal Palm Residences, and even more affordable solutions for FAU graduates and their families. The aforementioned examples are just a few of the luxury offerings coming to Boca Raton, with much more in the works.

Boca Raton home prices

Boca Raton HOME PRICES

Like neighbors Highland Beach and Delray Beach, Boca Raton experienced an enormous increase in home values and sale prices in the past 5 years, with a specifically obtuse increase between 2020 and 2022. From the point of this writing (June 26, 2023), the year-over-year average listing price has once again increased, this time by $158,601. The current year's average listing price of $2,020,555 marks the first time we've seen an average listing over $2M. While many high-end, 8-figure waterfront homes in Boca Raton have played a role in the growth of this number, it's the everyday homes that have more than doubled in some cases that elevate the average we see today. In addition, new listings in the upcoming Alina, Residences at Mandarin Oriental, and other nearby condos have played a significant role in this uptick as well. 

Interestingly enough, the average sale price has decreased during this time, while the average time on the market has jumped from 34 to 59 days. These numbers may reflect the average home buyer's consternation amid the rising interest rates and inflation we've experienced nationwide. While the most expensive homes and highest-worth home buyers are largely unaffected, the families, young professionals, and incoming retirees have been forced to pause while the numbers in both our economy and their own lives start to level out. While home price reductions have been fewer than in neighboring towns, the presence of such reductions despite the strong value of Boca homes shows the impact the Fed has had on buyer and seller decisions.

for sale listing from realtor perspective

REPORTING FROM THE GROUND: WHAT OUR AGENTS SEE

Our agents have dealt with increasingly hesitant buyers reluctant to act in the wake of the numerous adjustments at the national level, while others have been deterred from settling in Boca due to home prices. Though neighboring cities have been conducive to these particular clients, it doesn't change the fact that home searches have been more impacted by federal decisions than in recent years. Whether that be people of fewer means averting risk by being more judicious, or more often those of great wealth simply waiting for the right time, buyers have moved slowly while sellers have had to make difficult decisions regarding the lofty prices of their homes. In Boca Raton, there are fewer clients with an urgent need to move. Boca Raton real estate's base clientele are primarily those who are selectively shopping for homes, rather than those with a sense of urgency in response to a death, childbirth, or business relocation. This on its increases the time on the market and hesitancy to buy, rather than affordability as the prime factor as shown in most places nationwide.

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