After falling for six months straight, the supply of homes in the Delray Beach real estate market is rising again.
As you can see, it fell for six straight months, but from August to last month, September, it rose quickly, 7.7%.
What you don’t see is that this September over September 2022, inventory is up almost 15%. And on a year over year basis, it’s up 6.9%.
Last week, I shared that over the last 72 days in South Florida, there’s been an increase of inventory by 12%.
A lot of reader ask me what I mean by the Delray Beach real estate market in my reports. Take a look at this map.
This shows inside the red box. This is a map of Delray Beach real estate, incorporated. Anything to the west is unincorporated.
Delray Beach Real Estate NEW Charts
Now, here are those new charts I put together. The first one is the number of homes sold. You can see this goes back two and a half years to April of 2021. Look at September of 2021 through December.
In that 4-5 month period, there was a lull in the number property sold. If you looked at 2022, the same thing, September, it went down to November, a little rise in December, then back down in January, and you can see that that is kind of the off season.
That’s before the spikes in the number when all of the snowbirders come down to live for six months.
Now look at the average sales price. You can see sales price has risen over this two-and-a-half-year period Look at August, September, October. It rose from $476k to $576k. Look at August of 2022. Delray Beach real estate prices bottomed at $510k then raced higher the next three months. Two months ago in August… we’re starting to see a that trend continue.
Next one, let’s look at days on market. If we go back two and a half years ago, inventory was crashing and bottomed in May of 2022, which is when days on market at 20.5 days.
But as inventory rose late last year, so did days on market. There’s correlation with inventory rising and falling to days on market as you can see.
And how about interest rates? Take a look at this chart. It’s climbed from 2.8% in July of 2021 to 7.85% today.
Rates have a direct role in the affordability index.
Delray Beach Real Estate Affordability
Anything over 50%, which is since February this year is bad.
I took the average household income of a hundred thousand dollars. If you’re making more, affordability is less. If you’re making less, then affordability is more. Look at the chart. Anything over 50% means more than 50% of your income is contributed in this calculation to your mortgage based on the average sales price at the current interest rate. This is your principal interest, taxes, and insurance.
Anything over 50%, you’re not going to be getting a loan. This means is we’re still priced more than what this market can bear. We’ve been over 50% since February of this year. Go back to the interest rate chart from January. We went from interest rate of 6.3% up to almost 7% in February. That’s when the market changed.
Based on what’s happening with The Fed, we’re seeing rates now almost pushing 8%. It looks like in Q1 or Q2 of 2024 interest rates might see easing or possibly even dropping, and that’ll help affordability in this market moving forward.
Delray Beach Real Estate Homeowners – Time Is NOW
So, if you’re a homeowner who’s been thinking about preparing your property to sell, this is the time to do it. Don’t wait. I showed earlier the number of homes sold is now starting to rise and trend up. Also, the average price per property is clearly coming off lows and is now trending up.
If you’d like for me to prepare a competitive market analysis, A CMA, for your property, contact me.
But I’m on record – right now is the ultimate time to get your Delray Beach real estate on the market and ready to sell.
——————————-
Your Delray Beach Real Estate Market Update – September 2023 Dear Homeowners thinking about selling in the Delray Beach real estate market – IT’s TIME!!! Buyer demand is strong, the number of sales are starting to rise, as are prices. Do Not Wait!
Sign up for my weekly eLetter: https://mrdowntowndelray.com/weekly-eletter-2/
Download you Definitive downtown Delray Beach Condo Guide: https://mrdowntowndelray.com/downtown-delray-definitive-condo-guide/
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.
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
