The Delray Beach real estate market – and South Florida – are showing no signs of weakness and are not going to bust.
In South Florida’s summer, we have the seasonality effect. That’s when people leave. It’s hot, it’s nasty, it’s muggy. It has been all those things this year, but we’re not seeing the normal slowdown or weakness in the Delray Beach real estate market.
As a matter of fact, over the last two months, I’ve been working with a handful of luxury customers, and the narrative in the luxury market – above $1.5 million – is no more price drops. Instead we’re seeing price increases. When we look at prices below $1 million, the market is staying resilient and the number of price drops is slowing down.
Delray Beach Real Estate Data
Now, let’s start with the Delray Beach real estate overview. Here are four charts I show often, and one common theme is that the second quarter started a complete turnaround in the Delray Beach real estate market.
The first chart is Median List Prices. You can see for the last half of 2022, the median list price fell from $460,000 to almost $350,000. In April it turned and went vertical. Now the median price is hovering just at about $425,000. That shows you massive shift in the market overnight.
Next is the Number of Listings. In 2022 we saw an increase in the number of listings for Delray Beach real estate. More inventory means softening in prices, and that’s what happened last year. But then in February, it changed. Number of listings went from around 1,175 to 1,000. That’s a 22% drop just in the last few months.
Next is the Sold-to-List ratio. This is the price buyers pay compared to the listing price. In 2022 it went from 95.5% down to about 92%. And you can see starting in March, it’s back up. It’s now just below 94%. So, the market is showing strength.
And finally, Days on Market (DOM). Last year, DOM rose from 22 days to 60 days. This year it’s not falling much, but it’s starting to show a little sign of weakness. That says one thing: over the last quarter, the Delray Beach real estate market did a complete turnaround. Folks were surprised.
How Florida’s Economy Affects Delray Beach Real Estate
Now let’s talk about what’s happening in Florida: its economic strength, why people are coming here, and how that continues to drive the Delray Beach real estate market and why things are not slowing down.
First, general revenue in 2023 is expected to peak at over $46 billion. They expect a 2% drop in 2024 because of a “slowdown in the real estate.” We’ll see if that happens.
They expect net migration to grow at over 800 people a day. That’s 350,000 people per year, over the next five years. Real estate agents are giddy knowing our business for the next five years looks good.
Tourism. In 2022, Florida had 133 million visitors. This year they’re expecting over 142 million visitors. Tourism means people getting their eyeballs on Florida. That means what more real estate demand. Delray Beach real estate will see inflows from what the city is doing locally to attract more visitors and home buyers.
Unemployment is now at 2.6%… one of the lowest in the USA. That’s a huge reason why the Delray Beach real estate market is not slowing down. People are flocking here. There are jobs, shortage of housing, and plenty of demand.
Finally look at what’s going in August in Delray Beach. For locals or tourists there is a concert series. There is the Cocoa Market on the first weekend and and the farmer’s market every Saturday. Then the Art and Jazz festival, which is a monthly thing in Delray Beach. It’s a great time of the year to be here. And although August, September, October is the deep hurricane season, Delray Beach real estate is not shutting down.
One on a final note about Sunday Village. Sunday Village began construction two years ago. It’s at the corner of Swinton Avenue and Atlantic Avenue. It will have restaurants and office space that’s at the epicenter of Delray Beach. There are no plans for residential living options.
Right now, construction is at ground level. They’ve already dug 40 feet below street level to put in the underground parking. They’ve already repositioned all 7 historic homes. The historic society mandated these homes be part of the development and kept their original beauty. It’s been a great collaborative effort with the developer and the city of Delray Beach.
I’ll be sharing regular updates on Sundy Village as the development progresses. It’s scheduled for completion in 2025.
Your Delray Beach Real Estate Market Update – July 2023. Delray Beach real estate is defying all the odds. When folks say the market will come down, it won’t. Delray Beach is a special place. It’s real estate market is like no other. You just need to see what’s going on here to understand…
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