As foreign money pours into South Florida real estate, the demand for luxury homes and condos has kicked into high gear. Within the last year, 266 Boca Raton luxury homes and condos listed at $1 million or more have been sold.
Of those homes in Boca, 23 were valued at $5 million or higher.
While we’re not seeing bidding wars the way we do in lower priced homes, we are seeing less need for seller concessions in these luxury Boca Raton homes.
Luxury homes on a roll all over South Florida
South Florida luxury home sales, in general, appear to be on a roll. Miami, which now ranks as the world’s 26th most desirable city to live in, showed sales of more than 276 luxury condos and homes valued at $1 million or more since last year. And there were 17 luxury homes in Miami’s general environs that sold for more than $10 million.
Luxury homes in Fort Lauderdale also sold very well. More than 260 Fort Lauderdale condos and homes valued at $1 million more were scooped up by buyers last year.
Until about six months ago, many of the luxury homes in Boca, Miami and Fort Lauderdale were sitting idle. Sellers often waited many months, or longer, to see a buyer, even after some of them had cut prices by up to 50%.
Those price dramatic price cutting days are gone from the luxury home market. Now seller concessions in $1 million dollar homes hover around 5%, while homes in the $10 million and up areas may or may not, depending upon the property, average concessions of 15%-20%.
However, the bottom of the housing market now appears to be far behind us. Prices in Boca Raton and surrounding areas are up close to 27% since a year ago. As a result, the influx of foreign buyers is taking luxury homes off the market at the fastest pace since 2009.
Marc Jablon, The Jablon Team
RE/MAX Complete Solutions