Boca Raton Real Estate Market: Slower Sales, Steady Prices, and Shifting Opportunities

Earlier this year, Boca Raton’s housing market saw its sharpest decline in home sales over the past five years. So, is the sky falling, or are we just witnessing a market adjustment? Let’s break down what’s happening in Boca Raton.

Market Slowdown: Homes Taking Longer to Sell

One clear sign of a slowing market is the increase in days on market (DOM). In September 2024, the average home took 78 days to sell, compared to just 55 days in September 2023—a 42% jump. October’s data shows a similar trend, with average DOM sitting at 49.8 days and cumulative DOM at 55.4 days.

This slowdown started in early 2024, peaking in April at 81.8 days, but it’s clear the market has since stabilized. The extended time homes are spending on the market shows buyers are becoming more cautious, likely due to higher interest rates and the overall market cooling.

Price Trends: The Contradiction

Despite homes sitting on the market longer, prices have remained surprisingly resilient. In fact, the average sale price increased by 15% from September 2023 to September 2024. But here's where it gets interesting—when looking at the median sale price, there was no change year-over-year, indicating price stability in the broader market.

October’s data further reveals some critical trends:

  • The average active listing price is $1,926,642, down slightly from earlier months.
  • The new listing average price sits at $1,225,776, reflecting sellers adjusting their pricing expectations.
  • Homes are still selling, but the average sold price is $980,967, showing buyers are negotiating substantial discounts.

The Gap Between Listing and Selling Prices


A key insight from the data is the growing gap between list prices and sale prices. For example, in October 2024, the average sold price was $980,967, while the average list price was much higher at $1,205,612. This $200,000+ difference indicates that while sellers are pricing high, buyers are negotiating down—often by 8-10% below the asking price.

This trend has developed over the last year, with buyers gaining more leverage in negotiations. The market shift toward a more balanced scenario is giving buyers the upper hand in price discussions.

Inventory Growth: More Homes, Fewer Sales

Inventory levels continue to climb in 2024. As of October, there were 1,802 active listings, and 604 new listings were added in September. However, only 364 homes were sold. This is part of a larger trend where more homes are coming onto the market than are being sold, with 36% more inventory than at the same time last year. Despite this increase, current inventory is still 13% lower than it was pre-pandemic in December 2019.

This rise in supply combined with slowing demand means we’re unlikely to see sharp price increases in the near future.

Absorption Rate: Transitioning to a Buyer's Market?

The absorption rate, which measures how quickly homes sell relative to the total inventory, is currently at 4.5 months—up from 4.17 months last year. A rate of six months typically indicates a balanced market, meaning we’re gradually shifting from a seller's market to a more neutral one. Buyers now have more opportunities to negotiate, and sellers are adjusting to the new reality.

Final Thoughts: What Does This All Mean?

Overall, the Boca Raton real estate market is showing signs of stabilization after a few years of rapid price growth. While list prices remain high, sale prices are stabilizing or even slightly declining, especially when comparing sold prices to their original list prices. The market is becoming more balanced, and this is good news for buyers who have been waiting for a better time to negotiate.

For sellers, while the days of sky-high offers might be over, the market remains strong, especially for well-maintained homes in desirable locations. If your property is in good condition, you’re still in a favorable position, even though it may take a little longer to sell.

As we head into the final months of 2024, Boca Raton’s real estate market is transitioning from rapid growth to a more balanced state. If you’re looking to buy or sell, now is a critical time to get strategic.

Feel free to reach out to me, Larry Mastropieri, for any questions or further insights into the market. Thanks for tuning in, and I’ll see you in the next update!

Posted by Larry Mastropieri on

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