Last week I wrote how complex this Delray Beach real estate market is… today I go even deeper as to why.
1. Industry news says residential supply is crashing. From across our country to this local weekly eLetter, inventory IS on a downhill slide.
But if you drive around the Delray Beach real estate market you’ll see construction everywhere. Let me show you:
* George Bush Ave between A1A & Intracoastal bridge has two luxury condo projects under construction
* Atlantic Ave just west of Military is a large single-family development underway
* A new condo development announced last week on SE Fed Hwy next to aLoft hotel began pre-selling
* Nine townhomes on NW 4th Ave just north of Atlantic Ave are 50% complete
* Two blocks south of Linton on A1A are a dozen or more luxury condos
* GL Homes between Lyons Rd and the 441 are hundreds of new homes going up
There’s construction all over the place. But the list above is just a sampling. I encourage you to spend a day looking into the Delray beach real estate market and see it for your own eyes. It’ll help you frame your opinions about what’s going on locally, compared to the national scene.
2. Year-over-year comparisons will be “negative” or down for the rest of 2023.
One year ago this month was most likely the peak of the real estate market. Since then, sales are down 27% YOY in the Delray Beach real estate market. Prices are now down 3% from one year ago – the first time we’ve seen a down reading in ten years.
Moving forward, as we compare 2023 to 2022, we’ll see more “down” or “negative” numbers. Or, number “in the red.” We’re now comparing this year to the strongest year in the history of real estate (Don’t get caught up in this unless you want to drive yourself crazy).
3. Confusion. New Listings are down over 7% – and down 14 weeks straight. Active Listings are UP 26%. And, while the median price is UP 15%, it’s taking 176% longer to sell property today than a year ago.
Don’t take my words as gospel… look at this Days On Market chart:
So no matter if you’re a homeowner thinking about selling, or a homebuyer starting your search now… these Delray Beach real estate numbers won’t make sense unless you know the nomenclature well.
At time, even I have a hard time figuring out where things are headed. And I’ve been through three other market gyrations in my 28 years in this business. This market is not an easy one to explain.
There’s a lot going on in the Delray Beach real estate market. To catch yourself up, check out my March Update, here.
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*** Last Friday night my wife, daughter and I went to Hampton Social after seeing a dance performance at the Kravis Center. Two thumbs up! It’s lively!
*** The Hampton Inn Delray Beach opened two weeks ago. It’s a short two blocks north of Atlantic Ave and two blocks east of Pineapple Grove.
*** Photo above taken last Saturday morning as we began the Earth Day Beach Cleanup at lifeguard station #2. Collectively, over 100 helped and gathered over 50 lbs. of trash! Please do your part to keep our beaches clean.
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*** Your Weekly Inventory Update ***
* 4 years ago there were over 54,000 properties available in S. Florida
* It bottomed in February 2022 at 14,485… a 73% drop
* Last week there were 28,448 available… a 102% rise in 14 months
* This morning’s Inventory is 28,249
*** Inventory is DOWN, 14 weeks in a row ***
