There are three critical real estate data points happening right now as 2024 get underway:
1. Interest rates are easing
2. Inventory is soaring
3. It’s high season
When these three real estate elements line up at the same time it creates a market frenzy.
So today, I want to speak to homebuyers as you need to be paying close attention. You’ve been waiting for 2, 3 or 4 years for the real estate market to change. Well, you’re getting your wish spoon-fed to you now.
Think about this, for example: the Delray Beach luxury real estate market – the 33483 zip code – slipped from a slight buyers market to a full-blown buyers market in the last 30 days. The months of inventory is greater than 6 months and now stands at 9.66% or up 11% in the last month (above 6 months is a buyers market… below 6 is a sellers market).
One year ago today, mortgage rates were 6.21%. Today the 30-year rate is near 6.7%. In between then and now, rates hit 8.03%. Look:
But one year ago, inventory was still falling, leaving you with little options to look at or buy. 2023 was starting out giving you almost no hope. Back then there were 30,900 properties for sale compared to 38,429 today.
On July 29th, 2023, inventory bottomed in South Florida – no one knew that was the case then. Since that day, the supply of properties is up 40%. So as we begin 2024, buyers are feeling much better about their prospects of buying a home.
In speaking with fellow real estate agents, we’re all showing customers a minimum of 5 listings per tour. We haven’t had that option in years. For my customers, they’re able to get a good sense on the market and our local pricing, while seeing ample inventory.
Last, we are nearing the midst of high season… and it’s getting more crowded by the day. These folks give home owners a sense that the market is busy. But we can’t count the number of snow birders who are buying property.
It all comes down to this: the real estate market is lining up and leaning more in favor of buyers. This is what we know today. But this could change, too, if rates change direction and go back up. Or if all this new inventory is bought up this high season and homeowners continue to refrain from selling.
If you’ve been waiting to “time the market”, well… this is as good as buyers have seen it in over four years.
[photo above: taken from the Delray Historic Marina. The colors and reflection look magnificent]
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*** My “December How’s The Delray Beach Real Estate Market” Update is ready to watch
*** Real estate is a highly infrequent purchase, yet one of the most important you’ll ever make. Homebuyers, let me guide you through it with the Real Estate Closing Process. Over the coming weeks I’ll introduce you to my upgraded buyer representation guide
*** Let’s go for a WALK. Starting this Saturday morning at 8am, I will be at Anchor Park ready to go walking. It’d be great if 1 or 10 people join me. We can go for a mile or 5 miles. Play that by ear. It’s a great way to connect and create connections
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*** Inventory is Surging – UP 40% in 142 days! ***
* Last week there were 37,311 available…
* This morning’s Inventory is 38,489 *
… supply is UP again by 1,178 in the last week ***
