BOCA REAL ESTATE MARKET WATCH: IT’S OFFICIAL, WE’RE NOW IN A BUYER’S MARKET!

Hi everybody, Joe Hillner with Your Home Sold Guaranteed Realty here. Every week, I share market data to keep you informed about the local real estate market. Here is this week’s Boca Real Estate Market Watch.

Single Family Homes

This past week, we've seen:

• 59 new listings, ranging in price from $550K to $4.6M.
• 45 properties under contract.
• 31 properties pending.
• 50 homes sold, with prices ranging from $400K to $9.5M.

Condos and Townhomes

For condos and townhomes, the activity has been:

• 129 new listings, priced from $120K to $10.7M.
• 36 properties under contract.
• 42 properties pending.
• 51 closed sales, ranging from $120K to $1.9M.

The Market Shift: A Buyer’s Market

Now, let's talk about what's happening in the market. The stats indicate we are shifting into a buyer's market, particularly for condos. Condos often serve as an early warning detector for market shifts. Between January and February, some market technicals have turned in favor of buyers.

We've been observing inventory levels slowly increasing over the past six months. As properties sat on the market longer and new listings piled up, buyers found themselves with more options. However, due to high prices and persistently high interest rates, buyers haven't been very motivated.

Historically, condos have been more volatile and sensitive to economic changes, so it's no surprise they're leading the shift. Between January and February, the inventory supply for condos and townhomes increased from a 5.4-month supply to 7.2 months—a 33% increase in just one month! This is a significant change and warrants close monitoring.

Price Trends and Indicators

• Median list price for condos and townhomes: Turned negative last month, slipping 3% in just five weeks. List prices are forward-looking indicators, suggesting that actual sold prices might decline soon.
• Price per square foot: Decreased from $302 in mid-December to $294 last week. While not a massive drop, a continued downward trend could have significant implications.

What Does This Mean?

For the condo and townhouse market, buyers now have a slight upper hand—a situation we haven't seen in over a decade. But does this indicate a broader market crash? It's too early to say definitively.

Single family home sales in Boca remain soft but still favor sellers, indicating more buyers than sellers. The overall economy is in good shape, inflation is being controlled, and the Fed predicts rate cuts, although the timing is uncertain. As it’s an election year, expect efforts to maintain economic stability.

Conclusion

While we don't have enough data yet to confirm a market correction, it's essential to keep a close watch on these developments. We'll continue to monitor and update you as things unfold.

Thank you for watching this week's Boca Real Estate Market Watch. If you want specific market data on your neighborhood, text or call us at 954-799-6867. And if you're watching this on my YouTube channel, don't forget to like, subscribe, and hit the notification bell below. Until next time, this is Joe Hillner with Your Home Sold Guaranteed Realty signing off. Go Serve Big everybody! Be nice to each other, and I'll see you next week!