Boca Raton Real Estate Quarterly Market Update | (Q1 2024)

boca raton quarterly market update (q1)

It's been a wild few years in Post-Pandemic America, and with it, the downstream macroeconomic effects impacting all of us.  Boca Raton Real Estate, and South Florida as a whole is so sought after that it remains somewhat insulated from national calamities and rate increases. However, condo assessments, the staggering price of everyday goods, and the shortage of affordable housing have all had an impact on both our economic picture and the individual circumstances of buyers and sellers. The four metrics below paint a sufficient picture to speculate on the driving forces behind these numbers and how they may impact your outlook today and into the near future.

Please note: All commentary and reflections on this blog are informed opinions, and should not constitute actionable financial, legal, or any form of advice otherwise. 

boca average listing price (q1, 2024)

Average Listing Price

  • 04/01/2024 - $1,515,073 | +2.41% Increase

Listing prices can sometimes reflect a disconnect between sellers, buyers, and the timeline of macroeconomic events that impact the overall price of housing. Though Boca Raton, and South Florida as a whole are often more insulated from financial calamities at the national level, that's not to say the city hasn't felt the impact of high rate increases and soaring insurance costs. This was shown in the years 2022-2023 in particular, where sellers felt they would receive sale prices and floods of buyers seen during the COVID flight from the northeast. Though only a modest increase, the slight increase in listing from $1,479,442 to $1,515,073. This price may be influenced by new construction homes and condos keeping values high, but a more simple explanation is home prices plateau after falling for a few months. In fact, the average listing price between March 2023 and March 2024 dropped -10.15%, indicating that the year-to-date number may begin to recede into the negative if trends continue.

boca raton average sale price (q1, 2024)

AVERAGE SALE PRICE

  • 04/01/2024 - $1,135,568 | +34.98% Increase

This is a staggering detail in comparison to the average listing price and may reflect the continued and ongoing shortage of affordable housing in the Boca Raton area. It's possible that the majority of recent sales reflect the whims of the privileged few, while more nearby residents seeking to buy a home in Boca Raton are priced out. With exorbitant HOA fees at many of these communities, especially the upscale condos, the fees, insurance, and cost of maintenance alone would be prohibitive to many in the middle class and below. As more housing is built to accommodate the exponential growth of Florida Atlantic University among other extant needs, we hope to see the chasm between what's available and what is being sold narrow to a support a more balanced local economy.

boca raton average cdom (q1, 2024)

AVERAGE CDOM PRICE

  • 04/01/2024 - 67 days | +8.06% increase

This is a far less dramatic change from previous years, where 2021 in particular had homes flying off the shelves like Black Friday. This increase may be affected by the condo market in particular, which is seeing a significant slowdown following numerous assessments and changes in buyer demographics. CDOM stands for "cumulative days on market" and can be reflective of the urgency of the current crop of buyers and the desirability of the property. It is a high-level statistic that may not directly indicate dollar value but does show the big picture of supply and demand. The increase once again shows buyer hesitancy in the wake of higher rates and, in some cases, sellers struggling to accept their current price point is too high.

boca raton active listings (q1, 2024)

Active Listings

  • 04/01/2024 - 4,100 | +20.8%

This is a promising statistic! Home prices have (relatively) flattened to a predictable balance, while the initial shock of rate increases is tampering down as consumers adjust to their "new normal," home sellers have emerged from the woodwork to list a much, much larger number of houses than last year. In particular, the month of March alone showed a 34.3% increase, suggesting our summary Q1 percentage change of 20.8% will further widen. Despite a broader length on the market, houses are listing, and selling here in Boca Raton, and across Palm Beach County at a rate that far exceeds 2023 at this time.

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