No matter where I look at the beachside South Florida luxury real estate market, it’s getting softer.
In my November 15th eLetter I wrote about how I was seeing cracks in the South Florida luxury real estate market along the coast. In that email I highlighted the 33483 zip code. This area covers from Gulf Stream on the north, to the southern Delray Beach border, and mainly east of Federal Hwy.
Back then the Month of Inventory (MOI) was 7.19 (anything over 6 is a buyers market, while below 6 is a sellers market). As you can see in the chart below, it’s now 9.57 months. In other words, housing supply is rising.
This figure coincides with a major theme that won’t stay quiet much longer: Surging Housing Supply. (My latest video is about that and is fast becoming one of my most watched videos. You can watch all the details here).
In November, the Days On Market (DOM) was 59 days. Above it’s 63 DOM. And the “Market Type” line above is pegged further to the right on the orange Buyers Market line (compare that to Nov 15).
South Florida Luxury Real Estate By-The-Numbers
To make sure this is not an isolated data point, I looked at other beachside markets. Here’s how the luxury markets fair for these zip codes. Every one is a Buyers Market:
33487 Highland Beach: 7.52 MOI
33432 Boca Raton: 8.48 MOI
33062 Hillsboro/Pompano: 7.56 MOI
33480 South Palm Beach: 14.43 MOI
So, based on five beachside zip codes, they’re all in Buyers Market territory well above the 6 MOI marker. What I can’t show due to space, is all five South Florida luxury real estate markets are showing a MOI Increase over the prior month.
What’s Next for the South Florida Luxury Real Estate Market
The South Florida luxury real estate market inventory is growing giving buyers a lot more options today than before.
And having front-row-center seats to my MLS data screen, I’m seeing more price reductions – ahem, “price improvements” – each day. There’s not a day when I don’t see them falling. And price drops are ubiquitous for South Florida luxury real estate.
What happens next? One would think we’ll see price erosion in the data after high season comes to a close in late April.
As I say too many times, real estate is about fundamentals – supply and demand. So there is no market that’s “safe” when data like today’s start showing up. One of the first to see these effects are luxury markets. I’ll keep you updated on our South Florida luxury real estate each quarter. Should things start eroding, this is the sector that will feel it first.
Stay tuned.
[Main photo: an historic home in the Delray Beach Marina District]
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*** The Delray Beach Open Tennis Tournament is underway. If you haven’t gone yet Get your tickets now. It ends this Sunday, February 18th
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*** If luxury is in your future, get a glimpse Delray Beach luxury real estate here
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*** Surging Supply – UP 56% Since August 1, ’23 ***
* Last week there were 42.227 available…
* This morning’s Inventory is 42,724 *
… supply is UP almost 500 units in the last week ***
