It is not only lower priced homes in Boca Raton that have buyers in a frenzy. Based on statistics from the field, luxury homes in Boca and waterfront homes in Boca – those selling for $1,000,000 and over – are moving with the same alacrity.
Overall, sales of Boca Raton luxury homes in the $1 million plus range are up an average of just over 16%. However, there are certain price ranges that have seen 200% growth year over year. We’re not talking price jumps; we’re referring to numbers of homes sold within the price range.
For example, luxury homes in Boca Raton priced from $2,750,000 – $3,000,000 showed a 300% jump in numbers of homes sold (3x as many) since last year. In the $3,500,000 – $3,750,000 range, the increase was 200%. But even the highest price range showed an increase. Numbers of sales of Boca luxury homes and waterfront properties in Boca in the over $5 million range moved up by 37.5% year over year.
Meanwhile, predictions are for the US economy to increase by 2.7% this quarter, which is an uptick from last quarter’s anemic 1.7%. The revitalized housing market is helping to fuel purchases of decorating items, furniture, and appliances; higher end home purchases equal even greater expenditures on these items. These home related purchases fuel well above 65% of our economy.
Wealthy families, both domestic and foreign, now see luxury U.S. real estate as worth purchasing once again. It is interesting to note that this high end of the real estate market, which fell more than 40% during the great recession, is now moving rapidly into high demand. The days of 20% seller concessions on Boca Raton waterfront properties and luxury homes in Boca priced over $1,000,000 have vanished into a distant haze.
Large numbers of Boca Raton homes in the under $400,000 price range are currently selling at full price, and with no concessions on minor repairs. “As is” contracts are actually selling as is, without further negotiation.
A recent market experience showed me that most Boca Raton luxury homes in the several million dollar range are operating on the same basis. The buyer asked if there was any room in the $2.7 million price tag. The sellers responded that they had already lowered their original asking price to below $3 million in order to be congruent with market demand This was as low as they were going to go.
So, while there are several dozen Boca waterfront and Boca luxury homes in the market that are eagerly awaiting buyers, the market appears to be providing them, based on statistical increases in sales figures. In the $1 million plus range, just as in the under $400,000 range, there are abundant of cash buyers for homes in Boca Raton.
Marc Jablon, The Jablon Team
RE/MAX Complete Solutions