Welcome back to my Delray Beach, “How’s the Delray Beach real estate market update for February 2024.”
This is for you homeowners and sellers. We’re going to talk about three things: days on markets going up, surging supply, and why you don’t want to become a part of the market statistics. and I’m going to offer some ideas on how you can get one step ahead.
Delray Beach Real Estate – Changing Data
Take a look at Days on Market. Here’s two charts: First one, this is a longer view. This goes back two and a half years, and you can see that back in May of 2022, days on market was 20.5 days.
Now look at the second chart, this pertains to Delray Beach real estate. You can see that also rising now for the last two months.
Now, I want to share with you what I believe is the biggest theme here in the South Florida and Delray Beach real estate markets. Surging supply.
I have a handful of charts to look at. The first couple are just about Delray Beach real estate, and the rest are about South Florida, which is Palm Beach County and Broward County.
Look at the first chart. This is for Delray Beach real estate. You can see it bottomed back in August of last year, and since then, it’s now up to almost 1800 units. That’s almost an 80% rise since August of last year.
Now let’s take a bigger look back. This is data that I put in my weekly e-letter. I wrote in the last week of February, that since August of last year, inventory in South Florida is up 60% to over 43,500 units.
Now look at what’s happening so far this year here in South Florida. The first week of January, inventory was up over 1200 units. The second week, 900, then 790, then 900. Then in February the first, second, third up, 688, 500, 665 – supply is surging higher.
All this inventory is flooding the market, and there’s not enough buyers. Although there’s strong demand, there’s more supply. That means properties are staying on the market longer. Sellers don’t want to be part of this statistic and have their inventory linger on the market.
Look at my recent video, Surging Supply. It has all the information you need to know about inventory in South Florida.
Every day I’m looking at at least a half a dozen price drops coming through my email on the MLS. Why? Home sellers are not paying attention to what’s happening in today’s local market. They still think it’s a seller’s market. That was 2023.
2024 is moving into a buyer’s market. What happens then? Well, your selling strategy must change.
Delray Beach Real Estate Selling Ideas That Work
I wrote about the Dutch auction – a strategy where a homeowner puts their property a higher above what the actual value is, and they allow buyers to negotiate down to a number that they have in their head.
Let’s not price it higher, because in a buyer’s market, you’re going to get caught up in a Dutch auction, which means you’re going to have to lower your price, then again, then again until you find buyers by chasing after them.
That’s not a good strategy in this market. The strategy you want today is to get as many eager and able buyers to put offers on your property. They’re smart. You want to price it to what the value is today and get as many people looking at it right now. If not, it’s going to begin price dropping and you’re going to become a part of the market and not get ahead of the market.
Next – seller concessions are now a thing. That’s right. This is 2024. 2022, and 2023 were seller’s market where you demanded everything. Today that doesn’t work.
So, look at a recent essay I wrote where I talk about new ways to come up with concessions that’ll offer buyers the incentive to come look at your property. What I wrote is what about offering credits, upgrades, or renovations? Allowing buyers to customize the home to their liking lets them know that maybe you offer a paint job. These are things that are not going to break your bank, but $500 here or there, or… what if you helped with their moving costs?
Now let’s talk about dollars. Look at this. For most of last year, you can see that we averaged about 1.2 billion of active listings in the Delray Beach real estate market.
Since October, it’s raced up over $600 million and is under $1.8 billion in active inventory. This corresponds with all the new inventory that’s hitting the marketplace.
More inventory is hitting the marketplace. You don’t want to be a part of that statistic. Think through the process on how you can get one step ahead and apply some of the ideas I had today.
My final idea I want to share with you is my just-released second quarter downtown Delray Beach Condominium Distinctive Guide. Click on this link to get your now.
I share square meter price, what’s happening with HOAs, all of the amenities and properties, how many sold and are active, and a list of all 17 projects in the downtown Delray Beach real estate market that I know you’ll find useful.
Delray Beach Real Estate – Your FEBRUARY 2024 Market Update
As we start 2024, the Delray Beach real estate market is about change. And for you homeowners considering being a seller, it’s more important now than ever to get realistic with your pricing strategy. Don’t become a stat in the monthly reports. Instead get one step ahead of your growing competition by reviewing the data in this video.
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