Boca housing market cited on CNBC

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By: Jeff Perlman Editor in Chief
It’s not the kind of headline you want to see—if you live in Miami.
But when CNBC reported that “Miami Real Estate is Melting Down” last month, there was good news for homeowners in Boca Raton.
Despite plunging values and sales in Miami, CNBC noted an upsurge in prices and sales in the Boca market singling out the city for its strong market.
“Of all the major markets right now in [southern Florida], Boca is the leader,” said Jonathan Miller CEO of Miller Samuel Real Estate Appraisers who recently completed a study of local conditions for Douglas Elliman, a real estate brokerage. “I think it’s an area that’s less correlated to the foreign buyers and in Boca, the high end of the market is performing as well right now as the broader market.”
The average sale price in Boca Raton jumped 12 percent, to $304,196, while the number of sales increased 21 percent over the prior-year period, to 607. The study covered the first quarter of 2016.
The news was different for the Miami market. The average sale price in Miami Beach and the nearby Barrier Islands fell 7.5 percent year over year to $905,252. The median sale price fell 6.6 percent year over year to $408,750.
The total number of sales in the area also fell during the period, dropping 21.1 percent to 810 properties. Inventory surged nearly 33 percent, and there is now a 21.5-month supply of properties. That pileup means homes are taking longer to sell, with the number of days on market nearly doubling from 53 to 97 days year over year.
The average price per square foot for condos and townhouses in Boca is $190 up from $166 in the last quarter of 2015.
Inventory is up 2.3 percent to 1,418, about seven months of supply.
Single family home sales are also healthy with an average sales price of about $672,000 up from $605,000 in the last quarter of 2015. The median sales price is $390,000 and there is about an 8 month supply of inventory. Realtors are reporting strong interest in the luxury sector.