Sellers are seeing the South Florida luxury real estate market strengthen.
So you can follow along, I’ll start with the Delray Beach 33483 zip code – this is where most of Delray’s luxury real estate is east of the train tracks. I’ll include homes, condos and townhomes.
A few things jump out as we mosey into the forth quarter compared to my last update:
* Month of Supply (MOS) fell from 8.23 to 7.84 days (3rd quarterly drop)
* Time it takes to sell (DOM) fell from 73 to 51 days
* The Sold-to-List Ratio is the lowest in over 5 year, now at 90.6% (big news)
As you can see in the image below, compared to my last update on August 27th, the Delray Beach luxury market is becoming a tad less of a buyers market – similar to what’s taking place in the South Florida Luxury Real Estate.
Look at the orange bar to see how its moved to the center compared to August.
Although MOS and DOM fell, which is good for sellers, the big story now is the Sold-to-List metric. Three months ago it was at 99%. That meant homes were selling for their ask-price. But today it’s 90.6%, and that this is the lowest in 5-plus years… sellers are taking a beating at the negotiating table.
This is not a shock as October is still a hot month when demand has not returned. It’s the last slow month of the year before snowbirds return. So, this is the month when sellers are most vulnerable after enduring four summer months when demand is lower than normal.
Here’s some more data to share that you can’t see in the graph above:
The year-over-year median sold price change is up 6.8%. This is down from an increase of 11.4% in August. At the same time, the number of luxury homes sold is down 4.6% compared to down 10.4% in August. So, price gains are slowing, while the number of luxury homes sold is getting better.
South Florida Luxury Real Estate Round Up
As I do each quarter, I like to compare the Delray Beach luxury real estate market with surrounding areas to give you a broader perspective. Below is the October 2025 data for South Florida Luxury Real Estate a) Days on Market and b) Sold-to-List Ratio:
* 33062 Hillsboro: 93, and 92.9%
* 33064 Lighthouse Point: 55, and 95.2%
* 33432 Boca Raton: 81, and 92.8%
* 33480 Palm Beach: 130, and 90.5%
So, we’re still in a buyers market, yet the data is changing from firm to more neutral. In other words, sellers are liking the current data as it continues to be “less bad.” Buyers still have plenty of supply. But, if you’re a buyer, don’t get lazy as peak buyers market is now over as winter’s high season and more buying competition sets in.
One data point to keep your eye on is our South Florida luxury real estate housing supply. Regular readers know I provide a weekly update at the end of this essay. Let’s go back to August 27th and my last luxury update. Back then South Florida luxury real estate supply had 58,478 units on the market for sale.
Today supply is almost identical at 58,313. So, no change in the last 90 days.
In my last luxury report I said the data would be “less bad” for sellers as we enter forth quarter and winter’s high season. That case is now playing out.
But one thing is clear: sellers still need to lower their price to find buyers. That’s evident in the Sold-to-List data. And I still see price drops in my email inbox each day – 5-10% drops are common.
And that’s great timing for sellers and buyers as mortgage rates continue easing. One year ago the 30-yr mortgage rate was 7.1%. Today it’s near 6.3%.
Furthermore, there’s one big event propping up the South Florida luxury real estate market that I’d be remiss if I didn’t bring it up. New York city politics. Ultra luxury agents from New York and Palm Beach are showing up on places like CNBC and Bloomberg talking about the amount of money flowing to the South Florida Luxury real estate since the midterm elections.
This is a thing. One that will most likely last this winter season.
The best time to buy, when demand is low, is now behind us. With more buyer competition in the area, and supply softening, I expect strength leaning toward sellers. We’re now heading into what may be the strongest high season we’ve seen in South Florida.
(Main Photo: Intracoastal luxury home taken from Delray Yacht Cruises)
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*** The 39th Delray Beach Turkey Trot 5-k run is this Saturday starting at Anchor park. If you can’t run it, like me, show up early to enjoy the festivities, like me
*** Live and enjoy the finest Walkable downtown Delray condo on the market today
*** The Fastest Growing Housing Trend in the US is Sustainability. Out with opulence, and in with sustainable homes and living ideas
*** Delray is in the South Florida Luxury real estate spotlight lately. Mark Walberg bought this home for $34 million
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*** South Florida Real Estate Inventory is ABOVE 2019***
Last week’s supply was 58,187
Today’s supply is 58,318
*** Supply was Up last week ***
*** Supply is DOWN 19 of 28 weeks…***
