Top 10 Sales in Coastal Boca Raton - July 2021

For the second month in a row, Coastal Boca Raton saw a price record broken for the expensive residential sale. 144 W. Coconut Palm Road in Royal Palm sold for an astounding $24.5M - Nearly $5M higher than the former record holder in Sun & Surf sold last month by Douglas Elliman for $19.9M.

The top performing subdivision with 53% of the top sales was Royal Palm Yacht and Country Club; 38% of the top sales were condominium residences. For the first time, a new construction sale - #709 at Alina Residence made our top sales list.

144 W Coconut Palm Road
7 beds   |  10 baths   |  8,664 sq. ft.
$24,500,000

333 E Key Palm Road
4 beds   |  4.5 baths   |  9,118 sq. ft.
$9,000,000

1261 Spanish River Road
6 beds   |  8.5 baths   |  11,700 sq. ft.
$7,700,000

2275 Areca Palm Road
6 beds   |  8  baths   |  6,070 sq. ft.
$6,900,000

1744 Thatch Palm Drive
5 beds   |  7.5  baths   |  7,264 sq. ft.
$6,585,330

212 W Alexander Palm Road
6 beds   |  7.5  baths   |  8,153 sq. ft.
$6,365,000

207 W Coconut Palm Road
4 beds   |  6  baths   |  4,650 sq. ft.
$5,640,000

500 SE 5th Avenue, #1002S
3 beds   |  4.5 baths   |  4,168 sq. ft.
$4,900,000

400 S Ocean Blvd., #22
3 beds   |  3.5 baths   |  3,718 sq. ft.
$3,324,300

1500 S. Ocean Blvd., #1605
3 beds   |  3 baths   |  2,792 sq. ft.
$3,200,000

2166 W Silver Palm Road
5 beds   |  5  baths   |  3,897 sq. ft.
$3,000,000

200 SE Mizner Blvd., #709
2 beds   |  3.5 baths   |  2,897 sq. ft.
$2,840,000

600 SE 5th Avenue, #807S
3 beds   |  4.5 baths   |  4,221 sq. ft.
$2,821,500

For Builders and Buyers, Lumber is a Bummer

Over the past several years we’ve seen real estate prices climb higher and higher due to a limited supply and an increased demand, but a new factor is pushing prices up even further: the skyrocketing price of building materials. So, what’s behind these increased prices, and, more importantly, when can we expect some relief?

We’re all painfully aware that the pandemic triggered widespread supply chain issues, and building materials have been no exception. Supplies of steel, aggregates, and cement have dried up, but the trend might be most noticeable when it comes to lumber.

Nearly every aspect of home construction necessitates lumber – framing, trim, doors, flooring, windows, railings, and cabinets. The pandemic shut down lumber mills across the country, and supply chains were slowed by a shortage of truck drivers. Low interest rates and a lack of existing inventory increased demand for new construction, and all that new construction increased demand for lumber. It’s a perfect storm of demand outpacing supply.

According to Markets Insider, lumber prices rose by over 400% between May of 2020 and May of 2021, with the price per thousand board feet going from $327 to $1,645 during that time span. That figure has corrected since May, but, as of this writing, prices are still substantially higher than this time last year.

The rise in lumber prices has added almost $36,000 to the price of an average new single-family home, and nearly $13,000 to that of a new multi-family home.

Building material supply shortages, coupled with increased prices for land, means buyers will continue to see high prices for new builds for at least the foreseeable future.

Last year, home price inflation reached 11.4%, but experts predict a slowdown to 8.1% through 2021. By 2023, price growth is expected to slow to 4%. To put it another way, the surge in home prices is expected to slow, but it’s going to take a few years as supply chains and workforces return to pre-pandemic levels of productivity.

Top 10 Sales in Coastal Boca Raton - June 2021

June saw the most expensive residential sale in coastal Boca Raton: 819 Orchid Drive in seaside enclave Sun & Surf that traded for $17.9M + $2.0M for furnishings; total selling price of $19.9M - More than $3M higher than the former record holder in Royal Palm. Douglas Elliman represented both buyer and seller.

For the first time in recent history, only 40% of the top sales were in Royal Palm; nearly half were condo and townhouses. Luxury full-service condominiums and townhouses sales numbers are on the rise as luxury buyers from New York, California, and abroad seek the convenience of lock and leave second homes.

1. 819 Orchid Drive
   9 beds   |  14 baths   |  12,673 sq. ft.
   $17,900,000

2. 1000 S Ocean Blvd, #603+604
   9 beds   |  10.5 baths   |  7,484 sq. ft.
   $12,100,000

3. 311 E Key Palm Road
   6 beds   |  10 baths   |  9,022 sq. ft.
   $12,000,000

4. 690 Golden Harbour Drive
   6 beds   |  9  baths   |  7,644 sq. ft.
   $10,100,000

5. 1371 Royal Palm Way
   5 beds   |  7  baths   |  7,819 sq. ft.
   $10,300,000

6. 1936 Royal Palm Way
   3 beds   |  7  baths   |  7,840 sq. ft.
   $10,250,000

7. 3621 S Ocean Blvd, #6
   4 beds   |  6.5 baths   |  5,436 sq. ft.
   $6,295,000

8. 550 SE 5th Avenue, #703s
   4 beds   |  5.5 baths   |  5,184 sq. ft.
   $6,200,000

9. 4215 S Ocean Blvd, #Villa 3
   6 beds   |  7.5 baths   |  6,078 sq. ft.
   $5,796,100

10. 1928 Thatch Palm Drive
    5 beds   |  6.5 baths   |  7,448 sq. ft.
    $5,650,000