No matter which area you ask, How’s The Real Estate Market… the answer is looking the same.
Longtime readers know I don’t pay attention to national real estate data as it’s not relevant to where I do business – Delray Beach. But today, I’m bending my rule and looking at all of Palm Beach County.
As you can see in the image below, weakness is the common theme.
First look at the single family data. The median price is up compared to January 2024. Now look inside the red circle. Inventory and Months of Supply (MOS) are up 25% and 31% respectively.
It’s worse for the condo real estate market. Prices are up 1.5%, but supply and MOS are up 39% and 67%. MOS now sits at 9.7 months. A year ago it was 5.8. That’s a massive shift from a seller’s to a strong buyer’s real estate market. I believe this will continue, and by doing so will drive the number of condo sales down in 2025.
As you know, our local housing supply continues to rip higher (scroll to the bottom of this essay to see the current South Florida real estate market data as of this morning).
Now compare this to greater Delray Beach. One year ago there were 1,176 units on the market. Today there are 1,639, or almost 40% more. At the same time, MOS is now 7.2. This is much lower than all of Palm Beach County. That shows how resilient the Delray Beach real estate market is today.
I share these optics as again, mainstream media is touting how strong the Palm Beach County luxury real estate market is. But that’s an entirely different market. Actually, there are two luxury markets, 1) the luxury market and 2) the super-luxury market.
For the luxury real estate market we’re seeing price erosion and the number of sales fall no matter which zip code I review. I wrote about it in my January 29th eLetter.
As for the super-luxury market the narrative is a whole different story. These are homes above $10 million. For a glimpse, check this out. I keep tabs on that market for fun, But I’ve seen more of these homes sold in the last few months than I have in all my time in real estate.
And, Palm Beach now has the most expensive listing in all the US. Read this. In this essay, scroll to the 10 most expensive U.S. homes sales of January and you’ll see Delray Beach came second with a $50 million sale.
So… when you ask “how’s the real estate market”, be as specific as you can as the answer depends on which area you’re considering, and the type of real estate you’re considering.
(Main Photo: A beautiful Historic Marina District home along the intracoastal)
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*** South Florida Real Estate Market Inventory is Now ABOVE 2019***
Last week’s supply was 60,439
Today’s supply is 60,889
Supply was Up 450 units last week
*** That’s a rise of 6,679 or 14% in 2025 ***
