Posted by Larry Mastropieri on Monday, January 29th, 2024 9:50am.
In the comprehensive Real Estate Market Report for Boca Raton, Florida, as of January 2024, Larry Mastropieri, the broker and owner of The Mastropieri Group, provides a detailed analysis of the local real estate trends. The report begins with a striking revelation of a 12% year-over-year increase in average sale prices comparing December 2023 to December 2022. A deeper dive into annual data shows a 6% rise in average sales price, from $842,000 in 2022 to $892,000 in 2023.
Mastropieri emphasizes the importance of considering median sales data alongside average data to avoid skewing by outlier transactions. This approach reveals a 10% year-over-year increase in median sales price for December 2023 compared to the same month in 2022, and an 8% increase for the year as a whole, with median prices rising from $525,000 in 2022 to $565,000 in 2023.
The report also delves into the sale-to-original list price ratio. Early 2022 saw properties selling at or above asking price, but this trend shifted later in the year, with properties trading 7-9% below original asking prices, aligning with historical norms of 2015-2019.
An analysis of the average days on market reveals an 8% increase in December 2023 compared to the previous year, with homes taking about 57 days to go under contract. This trend is interpreted as a signal of healthy market demand.
Mastropieri also highlights the existing home sales data as a lagging indicator, noting a slight decrease in home sales and a 21% increase in inventory as of January 2024, though still lower than historical averages.
Under contract data, viewed as a leading indicator, suggests a potential softening in the market. However, the sales price data does not reflect this trend.
The absorption rate indicates a shift from a seller's to a buyer's market, with the current rate reflecting a more neutral market condition, similar to the period from 2015-2019.
In conclusion, Mastropieri forecasts continued price growth for 2024, despite the affordability crisis and high interest rates. He anticipates a more normalized market similar to 2015-2019, with sufficient demand to absorb increasing inventory. This optimistic outlook underscores the resilience and dynamism of Boca Raton's real estate market.
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