The Delray Beach real estate market created new data points for you to know as we head into 2024.
To start, let’s take a look at inventory here in Delray Beach. Take a look at the first chart.
You can see in August, inventory bottomed at around 997 units, and at the end of December, it’s at 1,463 units. That’s a 46% rise over four months. That’s creating a lot of shifts in the local real estate market, and that coincides with what’s happening in the greater South Florida market.
Take a look at this. I wrote back on December 20th in my weekly e-letter that Inventory was up 15 weeks in a row, Then in November and December inventory rose by over 6,700 units.
But things changed In my first week e-letter of 2024. Take a look what I wrote on January 3rd.
Inventory was down in the last days of the year, falling more than 1,386 units. That’s the first time we’ve seen a turndown since August. So the big questions are, is this a new trend that’s happening in the local market with inventory? Are we starting to now see demand with lower interest take effect?
Delray Beach Real Estate Prized Charts
The first one is the number of homes sold. You can see over the last two and a half years, it’s a general downward trend, and last month only 197 units sold. Since May, we’ve had a downward trajectory in the number of units sold.
Next chart take a look, is the average sales price. $689,000 for the average sale price in Delray Beach.
Now look at the days on market. Over the last eight months, we’re starting to see a softening off carving a rounding effect in the days on market.
Now, let’s talk about the elephant in the room – the 30-year fixed mortgage rates.
You can see the rate fall from 8% down now to 6.6% in the first week of January, 2024. The Fed now is talking about easing in late second quarter. They’re saying they might lower the federal funds rate because inflation is now coming down near and closer to 2.5%. But remember, mortgage rates are not directly correlated to what the Fed say. It’s tied closer with the 10 year treasury yield? Take a look:
This looks at the five-year trend. On the left side is the 10-year treasury. On the right side is the mortgage rates. You can see those go lockstep in correlation over the timeframe. It works even better on the one-year chart. Look at this.
On the left side, you can see the 10-year yield around 3.6. The rate started and ended the year about the same rate. Same with mortgage rates, also around 6.6% to start 2023 and ending at about the same place. So you can see the correlations.
I believe we’re going to see rates softening over the next six months.
Delray Beach real estate prices:
Look on the 2023 column, year-to-date. If you go down to median sales price, it’s $340k ending the year versus 2022 when it averages $320k, which is a 6.25% increase.
If you want to know about your neighborhood pricing or your zip code and get more specific data, send me an email or call me at 561-777-4089. Overall, Delray Beach real estate did well last year.
What does all this mean as we head into January 2024 in the Delray Beach real estate market? Well, this place was nuts over the holidays. Car traffic started earlier than normal this high season. Restaurants we jammed. The beaches were full. The weather was postcard perfect. Delray Beach is having its 15 minutes of fame. With the Sunday Village, Atlantic Crossing and a multitude of other projects under construction, Delray is poised to become even busier as this decade progresses.
Right now, prices are good for sellers. Buyers are seeing rates come down and inventory rise. That’s good for them. I’m getting more homeowners calling me, asking for competitive market analysis or home equity reviews. There’s just a lot of good things going on in the Delray Beach real estate market.
Delray Beach real estate could have one of its strongest real estate markets its ever seen.
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Delray Beach Real Estate – Your December 2023 Market Update. 2023 was a wild ride. And the Delray Beach real estate market thrived. Now it may get even crazier with rates falling, inventory rising and these others points you will find valuable…
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