Real Estate is a fundamentals game. Specifically, supply and demand.
For the Delray Beach real estate market, this has been my big theme all year. I write about it my weekly eLetter. If you’d like be included in my distribution, please click on the link at the bottom.
At the end of January 2022, inventory bottomed in South Florida at 17,485 available properties for sale. Then, supply raced higher until early July to 26,000. That’s an increase of 75% in just five months.
Since then inventory is still rising, but at a much slower pace. As of October 3rd, inventor stands at 27,774. That’s a 6% increase in 90 days.
Part of the reason for the slowdown are the rise in interest rates from 3% in February to now hovering near 7%. Sellers are nervous to sell as they’d have to find another property to buy at these elevated rates.
So, we may see more inventory slowdown in the fourth quarter in the current market conditions. But – and this is big the Delray Beach real estate, but – high season begins this month. I’m already seeing semi’s arriving dropping off cars… and restaurants are filling up. Oh, traffic is back, too.
Delray Beach Real Estate Home Sellers
My last 4 buying customers almost said the identical thing while looking at properties in September, “John, these properties are priced well over market comps. And now they’re languishing on the market. When will they come down to reality and want to sell?”
Buyers are smart. As I said in August, they are armed with the best data available. That’s why now more than ever, sellers who want to sell, can’t just test the market. “Let’s price it high and see what happens” is a bad strategy. If you do, you’ll become a statistic in next month’s Days On Market (DOM) report.
DOM has been rising as I showed you last month. Take a look at Septembers DOM here.
That’s two straight months of rising DOM. That’s a result of two things: 1) rising interest rates keep buyers out or the market and 2) Seller’s mis-pricing their property.
I’ve been seeing more Delray Beach real estate price drops the last 60 days than I have in the last 3 years. So I’ll repeat it again, “the first day your home is on the market is the day your property gets the most eyeballs. If it’s mis-priced, one day becomes one week… and by the end of 15 days, it’s stale. Neither agents or buyers are looking at it anymore. So, make sure you price it for TODAY’s market if you want to sell. The “Price Dropping” strategy is just not working in this Delray Beach real estate market.
Delray Beach Real Estate Market Data
New Listings – As you can see, the number of new listings peaked in May at 545. In September it was just 347. Year over year, it’s down 18% from 424. This trend does not bode well for buyers.
Downtown Delray Beach Real Estate Data
The total number of Delray Beach real estate market Condos & Townhomes SOLD in the last year in Downtown Delray was 168. Here they area:
And, the median price was $586 ft2. This should give you a sense of pricing in the downtown Delray Beach real estate market.
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Delray Beach Real Estate Market Update September 2022 Here’s a look at the Delray Beach real estate market for September.
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