Boca Raton's housing market remains on fire and inventories still a problem

Boca Raton’s housing market continued its sizzling run in June.

According to statistics from the Realtors of Broward, Palm Beach and St. Lucie counties (Beaches MLS), closed single family home sales in the city were up 73.6 percent last month compared to June of 2020 (335 this June, 193 last June).

Townhouse/condo closed sales were up even more at 125.3 percent (392 this June, 174 last June).

But with inventories still at historic lows, buyers are having to pay asking price, or get left behind.

And, those sale prices are rising.

The average sales price for a Boca Raton single family home sold in June was $1,187,757 – a 49.7 percent increase from last June ($793,443). The average sales price for a townhouse/condo sold in June increased even more (64 percent) – $501,241 this June, $304,575 last June.

The biggest jump, however, came in the overall total dollar volume, as last month’s single family home sales resulted in a 159.8 percent increase ($397,898,727 this June, $153,134,550 last June), while the townhouse/condo dollar volume jumped a whopping 271 percent ($195,984,789 this June, $52,819.264 last June).

It’s all playing out to a backdrop of a continuing decline in inventories for both the single family and townhouse/condo market all across Boca Raton.

“School’s out, and as vaccination rates rise and America enters a new normal, the U.S. housing market continues along at a frenzied pace, with low interest rates and limited inventory fueling record high sales prices,” according to the Beaches MLS report. “May saw the median existing-home sales price exceed $350,000, a 24 percent increase and the largest year-over-year increase since 1999, according to the National Association of REALTORS.

“Eager buyers are making multiple offers, some for well over asking price, while others are making offers on homes sight unseen.”

New home starts are one way out of this upward sprial in prices, and builders are doing their best to that end.

“The increase in sales prices comes with a slight decline in existing home sales nationwide, as homebuyers struggle with declining affordability amid a lack of inventory, forcing some buyers to simply wait it out in hopes of more inventory and less competition,” the report stated. “Meanwhile, home builders are trying to meet the increased market demand, with housing starts up 3.6 percent in May from April, according to the Commerce Department.

“As we ease into new routines and look forward to a post-pandemic future, one thing remains certain: America desperately needs more homes.”

Other June single family home Realtor | Broward, Palm Beaches, St. Lucie stats were:

• Median sales price up 34.8 percent – $701,000 in June 2021, $520,000 in June 2020
• Percent of original list price received up 6.4 percent – 98.1 percent in 2021, 92.2 percent in 2020
• Median time to contract down 61.3 percent – 31 days to sell a home in 2021, 80 days in 2020
• Pending sales down 19.7 percent – 248 in 2021, 309 in 2020
• New listings down 19.2 percent – 294 in 2021, 364 in 2020
• Inventory of homes for sale down 63.1 percent – 334 in 2021, 904 in 2020
• Months supply of inventory down 74.5 percent – 1.2 months in 2021, 4.7 months in 2020

Boca Raton’s townhouse/condo sales so far this year have resulted in a 183 percent increase in total dollar volume ($1,004,412,640) compared to the first six months of 2020 ($844,306,871).

Other June townhouse/condo Realtor | Broward, Palm Beaches, St. Lucie stats were:

• Median sales price up 15.9 percent – $270,000 in June 2021, $233,000 in June 2020
• Percent of original list price received up 5.9 percent – 96.3 percent in 2021, 90.9 percent in 2020
• Median time to contract down 34.6 – 53 days to sell a townhouse/condo in 2021, 81 days in 2020
• Pending sales up 22.5 – 321 in 2021, 262 in 2020
• New listings down 27.1 percent – 307 in 2021, 421 in 2020
• Inventory of homes for sale down 63.1 percent – 451 in 2021, 1,222 in 2020
• Months supply of inventory down 76.7 percent – 1.4 months in 2021, 6 months in 2020

For more information on single family, townhouse/condo housing and commercial properties in Palm Beach and Broward counties, visit Petruzzelli Real Estate at their iconic 2325 N. Ocean Blvd. (A1A) office in Boca Raton or call them at 561.362.8413.