It looks like our South Florida luxury real estate market is getting stronger.
(In my February luxury market update, it was just the opposite. Look at what I wrote in my blog then).
Back in February I showed how the Months Of Inventory (MOI) in the 33483 zip code surged higher to 9.57 months (A reading of 6 or higher is a buyers market and 6 or lower is a sellers market).
In the chart below it shows the May MOI at 6.71. That’s a 30% drop in just four months. (June data will be out in a week or so – if it drops again I’ll share it in my footnotes next week). You can also see the Days On Market (DOM) is falling fast, too. In February it was 63 DOM, and now it’s 43.
These are huge swings favoring 33483 zip code sellers.
But, back in February, the South Florida luxury real estate market was seeing a supply surge favoring buyers that lasted about seven months. I just saw preliminary June data and since March, inventory is flat-to-down.
Top South Florida Luxury Real Estate Data
To make sure the 33483 zip code is not a one-off event, I looked at other South Florida luxury real estate markets. Here’s how these South Florida luxury real estate markets fair for these zip codes:
* 33487 Highland Beach: 5.94 MOI – down from 7.52
* 33432 Boca Raton: 8.28 MOI – down from 8.48
* 33062 Hillsboro/Pompano: 7.99 MOI – up from 7.56
* 33480 South Palm Beach: 12.51 MOI – down from 14.43
So, in 4 of the 5 zip codes measured above, the MOI is in a downward pattern. In other words, what was a dominant buyers market is now leaning back towards a sellers market. But for the most part, MOI is still above 6 – a sellers market.
With the South Florida luxury real estate market MOI starting to fall, it’s giving sellers optimism for price reductions to slow down. And
Longtime readers know I’ve been writing about falling prices most of this year. As of today, the median active listing price change in 33483 is 6.47%. I just checked the other zip codes and all five show price reductions in the high single digit range.
This is all interesting as we’re heading into the weakest selling season of the year. And, hurricanes are already happening. That keeps the number of out-of-state buyers away from South Florida.
But if you want to brave our climate this summer, this might be the best time in a few years to consider you South Florida Luxury Real Estate purchase before demand rises again and while inventory is the highest its been in the last four years.
But for Q3, anticipate surging supply to cool off. At the same time, demand is flat so we may see MOI stay even to where it is today. Overall, the South Florida luxury real estate market still favors buyers, and shows early signs of the pendulum shifting.
(main photo: Cannery Row Townhomes in Pineapple Grove)
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*** Have you heard of the Hometown Hero’s Program that allows first-time, income-qualified homebuyers buy a home
*** Happy July 4th, Delray Beach Style, Celebration details
*** I’ve been showing a lot of property in Lake Worth recently. I you want to learn more about out neighbor-city to our north, go here
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*** South Florida’s Surging Supply Continues ***
* Last week there were 47,221 units available…
* This morning’s Inventory is 47031 *
… supply was Down 190 Units
