Over the last few weeks I’ve been nose-deep in our Delray Beach real estate charts and today’s bring more eye-openers.
If you haven’t been following along, my last two newsletters will get you current on the changes I’m seeing unfold. Get caught up here and here.
At the core of the Delray Beach real estate market is the disconnect between what people think, and what’s real. You see, at cocktail parties, most folks still believe the real estate market is red hot. Perhaps they’re only listening to reports on how Palm Beach and Miami luxury markets continue to bring more billionaires to their playgrounds.
To touch on that, here are some tidbits:
* West Palm Beach is earning the nickname “Wall Street South.” Firms like BlackRock, Goldman Sachs and others are relocating there.
* The luxury real estate market is booming with a 21% increase in $10M+ home sales – and no sign of slowing.
* Steve Ross, Founder of Related Companies and Miami Dolphins owner, is investing $10 billion into West Palm Beach: Several large developments, a $600 million hospital and a Vanderbilt university graduate campus.
Delray Beach Real Estate Facts
Back in the greater Delray Beach real estate market, the two charts above tell their own story.
The graph above shows the median sold home price (including condos and townhomes) over the last three years. It has flat-lined. In October, 2022, the median sold price was $335k. Today it’s $338k.
The image below shows the Months of Supply (MOS). Below 6 months is a sellers market. Regular readers recall how MOS throughout South Florida has been in the double digits the last 18 months. That’s a healthy buyer’s market.
Back in March the greater Delray Beach real estate market MOS hit 6, but has fallen to 3.61 today. This is seller’s market territory. That’s a number to watch as slow season comes to an end in about 60 days and demand returns to the market.
I’ll wrap today up with with some commentary.
As you can see, Delray Beach real estate prices are flat over the last 36 months, and now we’re seeing MOS pointing to a seller’s market. Soon after you get this newsletter today, The Fed will announce if they are lowering the Federal Funds Rate.
Longtime readers know there is no direct correlation with the Federal Funds Rate and mortgage rates. However, there could be fallout as a drop has been talked about for a long time. Already, the 30-yr fixed mortgage rate is down 0.82% since the beginning of the year. If it falls further, this could be the spark that puts home buyers back in the game.
So: lower mortgage rates… flat prices (in Delray Beach)… falling supply. Looks to me like a perfect formula for a surge in buyer activity driving up sales. And, with high season just over 50 days away, this Delray Beach real estate market may be one of the strongest in a while.
As I’ve said for most of 2025, the strong buyer’s market we’ve enjoyed could end sooner than you thought. Maybe that’s beginning to play out, now in the Delray Beach real estate market.
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*** My latest Video, “6 Reasons Delray Beach May Not Be For You” came out last Thursday
*** Keep you eye on the trusted source for mortgage rates here
*** Is luxury and sustainability your thing? If so, I have a home you should consider
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*** South Florida Real Estate Inventory is ABOVE 2019***
Last week’s supply was 57,249
Today’s supply is 57,282
*** Supply was up slightly last week ***
*** Supply is DOWN 16 of 19 weeks and Down 10% From April’s high***
