Uh oh… home sellers are gaining strength in the Delray Beach real estate market.
Real estate trends for the last nine months were going in one direction… and in April it changed. The market has flipped. So, I’m going to show you five charts that’ll give evidence how it’s changing from a buyer’s market to a seller’s market. Plus, I’ll share two graphs that provide context on how to market your home.
To start these three charts have the identical curve and formation: absorption rate, number of new listings, and days on market.
Absorption Rate means if not one new property was put on the market, how many months would it take for all the properties to sell? The absorption rate for the last year has been been going up almost in a straight line. But in April it began falling. When something breaks a trend, we make note.
Next chart is the Number of New Listings. It’s the same as above. It fell and in April new listings are down 5.7%.
The last chart finally is the Days On Market. I’ve been writing about days on market ad nauseam in my weekly e-letter for the last year. It went up 102% in 2022.
Well, last month it finally broke the trend line and came down. Think about this. Maybe buyers are starting to lose their upper hand. And if the trend of these three charts continue to go down, we might see sellers gain strength.
This is a massive change in the Delray Beach real estate market to watch moving forward.
Now, let’s take a look at the next two charts, which bode well for sellers and have the same similar formation and look and feel.
First is the median list price. As I told you last month, that’s been coming down for the last six months from $465,000 to $355,000. For the last three months, it has created a support line. It shows a value – a line – that could keep it from falling any further. And with the number of listings softening, that should hold prices right here, and maybe we’ll see prices start to rise.
Next up is Sold-To-List Ratio. If you listed a house for $100,000 and it sold for $100,000, that’s a 100% sold to list ratio. And that’s what happened in the Delray Beach real estate market one year ago.
Several months back it fell. As you can see it hit 92% and 96%. That shows weakness in sellers. But we’ve seen this bottom forming, and it looks like it’s going up now. And if that holds, that good for sellers. With less inventory on the marketplace and listing prices starting to stabilize, sellers are starting to negotiate less.
Buyers are starting to lose a little bit of the momentum the enjoyed in 2022.
If you’re curious about this, every week I write about it on a micro level. What’s happening in Delray Beach real estate market and other things about Delray Beach. I publish my weekly eLetter every Wednesday. If you’d like to get a free copy, you can sign up here. I’ll add you to my list and you’ll get on the next mailing of my weekly e-letter.
Here’s a sample of what I write about…
I have a weekly inventory update where it shows four years ago there were 54,000 properties available in South Florida. Then it bottomed in February of 2022 – a 73% drop. Then in 2022, it rose by 102%. When inventory is rising, it puts weakness on prices. But now it’s down 15 weeks in a row. When inventory is down 15 weeks in a row, it supports prices and gives sellers a little bit more oomph in the marketplace.
Now I’ll share two pieces of information. I thought that would be important for sellers. It’s something you think about when selling your home and choosing the right agent.
The first chart is the Top 10 Move to Cities. Have a look at this below…
The next chart is the Top 10 Move Out Of. The numbers are staggering. Have a look…
As you can see, when you’re a seller, you want an agent who is spending money on the places where those buyers are coming from. And match that with folks who want to buy in the Delray Beach real estate market.
You want to get as many eyeballs as possible on your property. So, you want your agent to be marketing in the areas where they’re leaving to catch them as they’re entering the Delray Beach real estate market.
That’s what I do. I spend dollars on my YouTube as well as my Google and Facebook pages. It’s one of the best ways to service my sellers and find buyers from out of area places.
So, if you’d like to speak with me about my services, call or text me at 561-777-4089. I’d love to get a cup of coffee with you and see how we may work together.
