While sales of luxury real estate growing more slowly this year nationwide than in years past, a recent article in the South Florida Business Journal highlighted the fact that many regions of South Florida real estate are showing amazing levels of activity in the luxury home market. Citing a Redfin study of American luxury real estate, the article looked at the top 5% of homes sold in a given location and defined that as the luxury market for that area.
So what are the highlights? In terms of year-over-year growth in the luxury real estate market, Delray beach ranked number 1 with a growth of 33.2% in the luxury market since last year, followed closely by Boca Raton at #3 on the list with a luxury market growth of 29.5%. Compare that to a 0.9% growth rate for luxury properties nationwide and it's not hard to see how hot Boca Raton luxury real estate is right now.
Looking at the gap between luxury properties and average properties on the market, Boca Raton top 5% luxury properties sold last year averaged a sale price of $2.64m, while the lower 95% averaged $294k, making a luxury gap of roughly 9x between luxury and everyday properties. This ranked Boca Raton 3rd nation wide for the difference between luxury and average property sale prices.
Analysts attributed Boca Raton's amazing luxury real estate market growth to an influx of foreign buyers and the fact that major companies like Jarden, Office Depot, and Essentia have relocated their corporate headquarters to Boca. This has resulted in a large number of executives moving into the area. Boca has always been a luxury destination that appealed to the discerning high end buyer, but now it looks like the word is getting out and the market for ultraluxury homes is growing far ahead of expectations.
Boca Raton is the place to be for luxury home buyers right now, and Scot Karp's team has the area's ultraluxury experts. If you're thinking about investing in a new luxury property in this exciting and highly active market, let Scot and his agents put their skills and expertise to work for you. Before you know it you'll be taking in an ocean view from the deck of your gorgeous new Boca Raton luxury dream home. Contact the Scot Karp team today!