I’ve yet to look at numbers like this… so here’s a new perspective.
Below is what the greater Delray Beach real estate market looked like 10 years ago (2014):
Jan 2014 Jan 2023 Difference
Median $ $137,000 $375,000 UP 173%
Ave $ $274,000 $745,000 UP 172%
DOM 92 Days 48 Days Down 91%
Sold Vol $66,000,000 $156,000,000 UP 136%
To summarize, back then the median real estate price was 63% less than today. And, it took twice as long to sell a property than it does now.
Ten years is not some significant data point, but it lets us put things into perspective. If you’re a stock investor, you know that doubling your money every five years is a noble goal.
To double your money every 5 years, you’d need to achieve a compound annual growth rate (CAGR) of 14.87%.
Applying the data above, an annual growth rate of 13.27% was required to achieve a total return of 173% over this 10-year period.
In other words, if you began buying real estate in 2014, you’d have missed your goals by a small margin. But who’s counting pennies.
Delray Beach Real Estate Market Explodes
You could say the Delray Beach real estate market rose due to the strengthening economy since 2014. But things don’t work that easy.
The City of Delray created an environment to allow entrepreneurialism to thrive. In 2014, the main businesses on Altantic Avenue (The Ave) endured a decade of no growth. In the early 2000’s there was a lack of genuine interest in place to allow it to grow.
But like any area that has such incredible geographic features like Delray, it doesn’t stay undiscovered for long. The city has the only main road that gives access to interstate 95 directly to the beach. And between I95 and the beach is The Ave. Surrounding it is some of the finest Delray Beach real estate you’ll find.
Again, special places take time to be discovered. And in the last 10 years, that’s what folks found: a beach paradise with easy access, creative minds, entrepreneurs to allow itself space to try new ideas. This last 10 years proved to be successful by allowing people to create a masterpiece.
Why Buy Delray Beach Real Estate Now
The point is this: any 10-yr cycle will have different investment returns. If you bought Delray Beach real estate in 2005 and sold in 2014, you may have lost money. But not all real estate is bought for investment. Most folks buy real estate as a home… a place to live and grow a family for 20, 35, 50 years.
With this perspective, today is a much better time to buy than it was one year ago… or even two years ago.
I hope this little exercise helps you if you’ve been on the fence unable to take action. Know this: no one knows where real estate prices will be ten years from now.
* Photo above – a lone surfer in South Palm Beach near Dune Deck
———————————
*** Hot Off The Press: My January “How’s The Delray Beach real estate market” video.
*** The Delray Beach Open ATP Tennis Tournament rages on all week!
*** Local tennis star Coco Gauff will be playing at the Billie Jean King Cup Team event in April
———————————
*** Your Weekly INVENTORY Update ***
* 46 months ago there were over 54,000 properties available in S. Florida.
* It bottomed in February 2022 at 14,485… a 73% drop.
* Last week there were 31,053 available.
* This morning’s Inventory is 31,004.
*** Inventory is dropping, 5 weeks in a row ***
What would you like to know about our Delray Beach real estate market and surrounding areas? Send me your thoughts. Back with more next week…
