Realtor.com published an essay last weekend that was so spot on, I need to share and discuss it with you today.
The title was, “Sellers Beware: More Homes on the Market Are Going ‘Stale’ Due to This Big Listing Mistake.”
Here’s the mistake taken from the essay, “Overpricing is the main culprit for listings becoming stale. Many sellers have expectations about their home value that stem from the buying craze of 2021–22 when listing prices shot up across the country.”
It’s refreshing to see writing like this, as longtime readers know I’ve been saying the same thing for almost a year.
In my Delray Beach Real Estate January Update video published last week, I share charts on rising Days on Market, Number of Listings and Months of Supply. Every chart is going “up and to the right.
In other words, the time it takes to sell and surging supply (again) is taking control of the market. These metrics are going against sellers and favor buyers – a lot.
My realtor colleagues don’t want me to share this data with you. But sellers need to know.
Delray Beach Real Estate Sellers Are Nervous
There’s nothing worse than thinking you have your finger on the markets pulse, but you’re looking at the wrong data. Or you’re talking with the wrong professionals. Or you have a bad bias. Or you’re listening to your neighbor who sold/bought 12 months ago. That is not today’s market.
It’s time you get current.
For the Delray Beach real estate market, here’s a breakdown in easy, bite-sized numbers. This shows how much each data point is up in the last year:
* # of listing is up 19% (Since May 2022 it’s up 275%. And please look at my weekly Inventory data below to see how fast supply is rising already this month)
* Days of Market is up 48%
* Months of Supply is up 40%
Again, watch my video above to get the full update on the Delray Beach real estate market.
One thing I believe, is in cooling markets, it’s important to be one step ahead then behind. I wrote about how using the “Dutch Auction” selling strategy of lowering the price until you find a buyer is good in certain markets. But not in this market. Today there’ is too much supply – or competition.
Pricing your property right at the market price is more effective. You’ll get more interested buyers looking right from the start.
Why Delray Beach Real Estate Prices Don’t “Have” To Rise
If not, I compare the Delray Beach real estate market to the stock market. Just because you paid $258 per share for Apple stock during Christmas doesn’t’ mean it’s worth that today. Today its trades for about $229 per share. Clearly something changed and it’s worth less today.
The same concept applies for the Delray Beach real estate marketplace. Prices, inventory, and the time it takes to sell changes all the time. You just need to know where your local market is today… and price your property for it.
(Photo above: My unfiltered moonrise photo taken at 10pm next to lifeguard stand #3 last weekend)
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*** Investor Alert! Is buying property in the path of development your thing? Buying where money is flowing? If so, I encourage you to head over here. The City of Delray plans to invest tens of millions of dollars into this neighborhood over the next half-dozen years. Investors who buy here will have their money treated right. This is a prime piece of the downtown Delray beach real estate market to consider now.
*** Last week I showed a property to a customer. As soon as we walked in we could smell damp, musty air. We immediately saw mold in the half-bathroom so we left. That afternoon I wrote this essay about the importance of, and risks of not maintaining your HVAC system. It’s important stuff.
*** New Restaurant Alert: Novecento. If you like Argentinian flare, it opened last week at the old Falcon House.
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*** South Florida Real Estate Inventory is Now ABOVE 2019***
Last week’s supply was 56,048
Today’s supply is 57,722
That’s a rise of 1,674 units last week
*** That’s a rise of 3,506 or 6.4% This Month! ***
*** Delray Beach Real Estate Supply is up 11% since January 1st ***
