* The downtown Delray Beach condo/townhome real estate market is as strong as ever, but…
At the end of May, there have been 58 condo/townhomes sold in the downtown Delray Beach market this year. That’s up from 50 sales in the same 5-month time period in 2022.
Through the same time period, the average sales price is $1,260,000 in 2023 compared to $962,500 in 2022. That’s an increase of 31%.
As for the median sales price, in 2023 it’s $982,500 compared to $754,750 in 2022, for a 30% increase.
At the same time, active listings are up over 11% in 2023 compared to last year.
But when you look at the chart below you see the Sold-to-List ratio is falling. One year ago it was 98%. Today it’s 87.5%. In other words, listings are selling 10.7% below their ask price today.
Important Downtown Delray Beach Real Estate Information
Longtime readers like to ask the ubiquitous question, “How’s the market?” But the answer to that cannot be generalized. We must look at data from development to development or neighborhood to neighborhood to arrive at a meaningful answer.
In other words, if you’re interested in buying in downtown Delray Beach… don’t look at the entire area for trends and data.
We need to dive even deeper. In todays market, the average price per square foot ($/ft2) and Days On Market (DOM) are just as important to know.
Whether you’re a seller or buyer, both of these are critical pieces of information.
If you’re a seller, you must find a $/ft2 that’s just below the comparative sold properties in order to stand out and gain action. Keep in mind, buyers are looking at this with an eagle-eye.
And if you’re a buyer, your favorite, new parameter is how long has the listing been languishing on the market (DOM). Today it’s not uncommon to see listings older than 90 days… and buyers are honing in on this trend (the average DOM in downtown Delray Beach is now 55.2 days).
Downtown Delray Beach – A Hyperlocal Lense is the Best View
I believe that’s part of why the Sold-to-List ratio is falling. I also believe we’re comparing this year against the largest unicorn market ever of 2022. And as each month passes, we’ll be seeing ratios start to thin out and look less dramatic.
2023 vs. 2022 statistics are not useful when looking at what’s been happening here the last half dozen years. Some like to look at pre-pandemic data as a benchmark. And, for a hot market like downtown Delray Beach, where our commercial real estate is thriving, restaurants pop up, and large developments are underway… it’s better to be armed with hyperlocal information.
So, when you ask how the market is doing, be prepared for me to respond by asking you, “which market?” Now more than ever we need to look at markets on a hyperlocal basis.
I’m here to help you do just that…
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*** Are you looking for an alternative to Delray Beach that also has a bright future? I wrote this Lake Worth Real Estate Guide just for you.
*** Tropical Storm Bret is a good reminder that Hurricane Season is here. Timely preparation reminders in the weeks to come…
*** I enjoyed reading this essay on some neat ways to think about saving money.
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*** Your Weekly Inventory Update ***
* 4 years 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 27,588 available… a 102% rise in 17 months
* This morning’s Inventory is 27,638.
*** Inventory is DOWN 19 of 21 weeks***
