There are three data points you must be watching in today’s South Florida real estate market.
First, the image below references the Delray Beach luxury real estate market. It’s data for the 33483 zip code. This represents Delray’s beachside markets. As you can see in the top orange area, the luxury market is now in “buyers market” territory.
Its been over four years since this happened. Consider this, a market with over 6 months of inventory is a buyers market. Below 6 months is a sellers market. Today it’s 7.19 months and rising.
And, the Sold-to-List ratio is falling. Today it’s 93.7%. That means there’s more negotiating and buyers are getting the upper hand.
Now, the Delray Beach luxury real estate market is not immune to market gyrations. And if you’re not aware, when markets turn down, luxury goods are the first that get affected. It’s similar to luxury watches, yachts, collector autos.
Delray Beach Luxury Real Estate Is Experiencing Growth
Delray Beach is now a destination brand. With Atlantic Avenue as the central focus with over 65 restaurants, folks come here year round. Then you add our 1.5 mile long public beach with direct accessibility to I95 – it’s perfect for locals and tourists.
On the fringe are neighborhoods like Osceola Park where one mid-century home after another is being transitioned to luxury homes. The goes with La Hacienda, Dell Ida, Dell Park and Lake Ida. Of course Tropic Isle is a mainstay for Delray Beach luxury real estate on the south end near Boca Raton.
You can see what I refer to in two video’s I made here and here.
How Delray Beach Luxury Real Estate Blends In The General Market
Next is about my main real estate market foxhole, supply. And the end of this essay is my weekly update. But let me put some narrative to it.
The 2023 South Florida housing supply bottomed the last week of July at 27,445. This mornings data shows 35,782 units. That’s an increase of over 30% in that last 100 days.
What’s most important is since October 1st, 45 days ago, inventory is up 3,577 units or 42%. So, home supply is rising faster as we head into high season’s winter months.
And finally, since October 25th, mortgage rates have fallen from 8.03% to 7.56% today. So with inventory building up, rates falling, and the luxury market softening… we may see a rise in luxury home sales this winter.
All of this data bodes well for my thesis that right now is the perfect time to get your home ready to sell. That may sound counter-intuitive, but while demand remains high, falling rates may help side-lined buyers perk up as inventory grows.
As for the Delray Beach luxury real estate sector, the next six month will be one of the strong high seasons we’ve seen in years. If, and I mean IF mortgage rates slip as inflation falls… we may see prices of luxury home go even higher.
I show more data about this in my recently published October Market Update video. Or if you prefer to read, click here.
——————————————-
*** If you’re on the fence about selling your property go here so I can help you determine your home’s value
*** If you want to see what Delray Beach luxury real estate looks like, enjoy clicking here
*** This Saturday is the 37th Annual Delray Beach Turkey Trot. It’s a fun 5k run along A1A to kick off Thanksgiving week
—————————————–
*** Inventory is Rising FAST – UP 31% in 100 days! ***
* Last week there were 35,094 available…
*** This morning’s Inventory is 35,782! ***
That’s an INCREASE of 688 Units in One Week!
OR… up 3,577 in 4 weeks!*
