To start the new year, the Delray Beach real estate market started out hot.
Today, I’m going to share three charts plus a bonus chart. I’m going to start out with New Listings and how they’re surging, how the Sold-to-List ratio continues to plummet, and of course the Days On Market (DOM). I’m also going to talk about the national inventory level and how that applies to Delray Beach.
Delray Beach Real Estate – New Listings
To start, look at the New Listings coming to the market. For 2022 there was a downward trend in new listings. It looks like it bottomed in December at 342 new listings. But then it rose 45% in the month of January to 498 new listings.
Why? The narrative is, most of 2022 interest rates did one thing – they went up. They went from 3% to over 7.5% in one year. Then in November, rates started to turn. They began sliding into the mid and low 6%.
Sellers thought, “there’s going to be more buyers coming into this market that can afford because their monthly mortgage payment is going down, so let’s get our property on the market.” That’s what you clearly see in the month of January.
Delray Beach Real Estate – Sold-to-List
Now, look at the Sold-to-List ratio. You can see in this chart last year, May peaked at 99.6%. What that means is if you put a property on the market for $100,000, it sold for 99,600 bucks. But as you can see, it crashed all year and in January it’s 91.8%.
Why? Well, remember last month I talked about how the first 48 hours of listing a property is critical. The first 48 hours are critical. If you list the property too high, a) it’s going to last longer on the market, and b), with this new surge in demand, buyers are starting to negotiate. So, if you have a high-priced property in today’s market, prices are coming down little by little, creating this gap in the Sold-to-List ratio.
As a seller, if you were to list your property with February 2023 prices, this Sold-to-List ratio gap will narrow, and you’ll be able to sell your house faster.
That’s why I’m bringing back the Delray Beach real estate Days on Market chart for the 5th month in a row. Take a look at this.
You can see it bottomed last July at 22.5 days. Last month, in January, it’s now up to 48 DOM… but it’s looking less dramatic.
That’s because all these charts play together. I mean, the new listings that are coming on the market this month, as we saw, is rising. The Sold-to-List ratio is bottoming. And now, the DOM is not looking as dramatic. And…prices are starting to drop. All this plays into it. It’ll be interesting. My guess is that we might see a slowdown or drop in DOM for February.
Delray Beach Real Estate – Inventory Update
Now I want to throw in this bonus chart. It’s about the national average annual inventory of homes for sale. As you can see, it averages about 4.2 to 4.5 million homes for sale in the United States every year except for the great recession, 2008/09/10/11 when inventory spiked.
In 2021, there were 2.3 million units and 2022, 2.7 million sold. (I write about this in my weekly e-letter. If you’d like to get a copy of that for free, click here – I’ll add you immediately).
In South Florida, we average around 52 to 57,000 homes for sale. But over the last couple years it dropped. A year ago, it dropped to 15,000. Today it stands at 32,000 units for sale. That’s still about a 45% drop. It’s important to know because with less inventory and prices still high – but coming down – we’ve have a high buyer demand situation that’s going to create a strong market for the foreseeable future.
Delray Beach Real Estate January Narrative
To summarize, as I do every month, I want to give a narrative of what the big theme was for the month of January.
It was all about you and the strength of this Delray Beach real estate market to start 2023. For example, I know exactly what you’re doing. I see it on my channels every day. Last month, for example, my YouTube channel grew its subscriber base by 119 people. That’s an increase of 22% for a small YouTube channel like mine. Additionally, my Google page increased its interactions with people by 93%. That’s people coming and looking at all my information on my Google page. That says one thing; Delray Beach real estate sellers and buyers are more interested and getting more active.
They want to learn more about what’s happening in the Delray Beach real estate market. They’re picking up their phone and calling me. I had 11 sellers call me last month… and 9 buyers call me from my YouTube channel alone.
This shows strength people are more interested and shows why January started out hot. I believe that for the next 30 days, February data is going to prove to be just the same, if not better.
So, I look forward to seeing you next month and sharing how things went for the February, Delray Beach real estate market.
Delray Beach Real Estate Market Update January 2023 To start 2023, Delray Beach real estate in January was on fire. More new listings, buyers everywhere and an upbeat mood.
As mentioned, join my Free weekly eLetter: https://mrdowntowndelray.com/weekly-eletter-2/
WELCOME TO MY CHANNEL! If you’re new, please subscribe: 👇👇👇👇👇👇👇👇👇👇 ✅ https://bit.ly/33u34fZ
Ready to start the conversation about moving to Delray Beach Florida? Call/Text me at 561-777-4089. So if you’re thinking of moving or relocating to Delray Beach or South Florida, I can help you. Grab my FREE Delray Beach (and surrounding areas) Relocation Guide – https://mrdowntowndelray.com/relocation-guide-delray-beach/
🙋♂️Let’s be social: * Instagram: https://www.instagram.com/johnmwieland/?hl=en * Facebook: https://www.facebook.com/RealtorProJo… * Twitter: https://twitter.com/JohnMWieland * LinkedIn: https://www.linkedin.com/in/john-m-wi…
🧑💻 Home Search: https://mrdowntowndelray.com/
Realtors – Partner with me at EXP Realty! Schedule a call to learn how. Florida license SL3444240. (Oh yeah, I lived in Costa Rica for over 12 years. Owned & operated 13 real estate franchise offices. If you’ve ever thought about buying a home in Costa Rica, call me. I can help you get from here to there safely and guide you through the entire process. My Costa Rica Rolodex is full of friends, lawyers, tour operator to help ). #delraybeachrealtor #mrdowntowndelray #johnwieland
