Home Prices Are Falling in Boca Raton | July 2025 Market Breakdown

Home Prices Are Falling in Boca Raton | July 2025 Market Breakdown In his latest market update, Larry Mastropieri, real estate broker and owner of The Mastropieri Group, breaks down the current state of the Boca Raton housing market as of July 1, 2025 — and the data shows that the market is finally starting to feel the same slowdown seen nationally. Starting with days on market, Larry explains that while homes are still taking longer to sell than in prior years, the rate of increase is finally slowing down. Compared to June 2024, the average cumulative days on market is up just 4% — a relief after seeing jumps of 28% and 35% in previous quarters. Homes now sit an average of 77 days before going under contract, and the median has moved from 36 to 43 days, a 19% increase. The more striking shift comes in home prices. Boca Raton, which saw nearly irrational price growth in 2024, is now seeing that trend reverse. The average sales price dropped 12% year-over-year to $1,028,995, and the median sales price is down 10%, signaling a broader market correction. Despite this, many sellers are still listing above market value, not realizing they may be losing 1% per month in value by waiting. Larry also highlights a consistent drop in the sale-to-original list price ratio, now hovering 9–10% below asking, further confirming the market’s softened stance. Inventory is rising too, up 17% year-over-year, with more homes being listed than sold. The second quarter of 2025 closed with 14% fewer homes sold compared to the same period last year. The absorption rate — a key indicator of buyer vs. seller leverage — has climbed to 7.27 months, placing Boca clearly in buyer’s market territory. Historically, pre-2020 absorption rates hovered in the fives, making this a weaker market than before the pandemic-era boom. Larry closes with a nuanced outlook: while the general market is softening, not all segments are equal. Single-family homes in non-membership communities and new construction luxury projects remain relatively strong, while resale condos are seeing more strain. He emphasizes that well-presented homes in desirable locations still perform well, and that patient sellers in 2025 may face a different outcome than in past hot markets. His takeaway for buyers: this is your market, but don’t wait forever. For sellers: be realistic, because chasing 2022 prices could mean sitting on the market for years. Despite current adjustments, Larry remains confident in the long-term health of South Florida’s housing market, backed by continued population growth, job opportunities, and strong state-level fundamentals.