The data still shows it’s a seller’s Delray Beach real estate market… but is it?
May was a whiplash of information both on a national and local level. In my April report, I showed you all the charts that shows why it went from a buyer’s to a seller’s market overnight. But May was the beginning of slow season in South Florida and in Delray Beach. And not only did some of the data change, but the narrative about what’s going on changed.
You’ve heard in the news that sales across the United States are way down. It’s the same story for Delray Beach real estate. As a matter of fact, month-over-month data for May shows sales are down 22% compared to 2022. And on a year-over-year basis, it’s down 24%. Now you can chalk that up to a lot of things. Inventory is down compared to last year. Interest rates are now just hovering at 7%. That has a lot of buyers concerned. So right now we’re seeing a contraction in the volume of sales.
Now take a look at my personal website visit traffic in May. It shows data from January through May. You can see in January, February, March, April, demand was strong. But in May it fell off a cliff. Demand for the first month of low season, which is rain season, fell.
Okay, so sales are down, and you ca see demand is down. But take a look at this Delray Beach real estate chart for May. This is the median list price. You can see the last six months was between $340,000 and about $380,000. Last month it ripped up to $425,000. Where did this come from? The Delray Beach real estate market transitioned to a seller’s market and there’s still demand out there at 7% interest rates, at least at the higher end of the market.
Delray Beach Real Estate – Sellers Point of View
There’s been more listings at the high end of the market. I’ve been talking about this year how I see more price drops each day in the MLS than I’ve ever seen in the past couple years. Between a half a dozen to a dozen emails from the MLS showing a new price drop. And a majority are prices from the upper end luxury market.
So while I’m seeing these price drops, we’re seeing more listings at that higher price level at the same time. That’s interesting.
Take a look at this. This is the month over month look at price drops across the country. You can see for years there’s been hardly any price drop happening. But look at the bottom right. Look at that 16% figure in April. All of a sudden a surge in price drops across the country.
If you want to learn more about what’s happening in the Delray Beach real estate market, new restaurants, or new developments… each Wednesday I send out a weekly e-letter to my database. That what I write about. If that’s something you would find interesting, click this link. After that, I won’t bother you. But if you want to talk more about Delray Beach real estate and our surrounding areas, contact me directly.
Now look at this chart. This is the Federal Housing Finance Agency or FHFA. And it’s an index. It looks at the month-over-month change in the median sale price of single family homes in the United States.
Look at that. Over the last few years, of course the prices ripped up and so did this index. But then mid 2022, it started the flat line. Now we’re seeing it start to surge up again. So, prices and the index are moving up. That goes lockstep with the Delray Beach real estate market the year.
The median list price for Delray Beach real estate is up almost 11% while the median sale price is up just under 15%. So, sellers are looking at the market saying, “yeah, there are still price increases or tailwinds that will continue to push prices up because of low inventory.”
But as I showed earlier, demand is now starting to fall with the number of sales falling, too. So, is it a seller’s market or isn’t it? Last month it appeared so… but I believe we need to see a couple more months of trends staying in place to make a call.
Now, take a look at this guide of what’s happening in the month of June throughout Delray Beach. Of course, our high season and all the big events are now over for the year. Our farmer’s market closed in May, but I’ll share this in the my weekly report.
By the way, happy hurricane season.
And now look at this event from last month. Delray Beach was the first city in America – there were two cities to get this award – to get the Blue Flag designation. It’s about being a good steward for our beaches, conservation and various educational action Delray has that support sustainability. This picture shows how many people came out for the celebration. Go down to the corner of A1A and Atlantic Avenue and look up, we have the United States flag, and we now have the Blue Flag to designate what a great job Delray Beach is doing to keep our beaches clean.
Awards like this help our Delray Beach real estate market thrive…
Delray Beach Real Estate Market Update May 2023
The Delray Beach real estate market is all over the board. Prices remain strong, price drops are a thing, off – or low – season is here, so demand is questionable… It’s a whacky Delray Beach real estate market.
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Delray Beach gets the 1st Blue Flag award in the USA: https://www.delraybeachfl.gov/government/city-departments/public-works/our-beach-projects/blue-flag-designation
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