So you want to know how the real estate market is doing? Today I’m going to talk with you about what took place in Delray Beach in June.
I’ll discuss three important data points you need to know now. But first, let me share the narrative.
The narrative happens about 30 days in advance of the actual data published for the month of June. In June, sellers and buyers experienced extreme sentiment changes. What I mean is sellers are now in what we call the “denial phase.”
It’s no longer the hot Delray Beach market of 2021 and prices are now starting to soften. On the other hand, we are now in the midst of mortgage rates rising. Rates are now giving potential buyers a second thought before they move forward. Demand is still high, but there is a clear sentiment change taking place right now. So, let’s now dive into these three data points.
The first data point is Days On Market (DOM). As you can see in the chart, in June, 2021, Delray Beach days on market was about 50 days. And, every month since then it’s been dropping. We’re down almost 68% from a year ago to 21.4 days. Properties are selling fast. But the narrative in June is that we’re starting to see listings last a little bit longer.
Point number two is Price Reductions. As I look at the MLS hourly, the Delray Beach luxury real estate market is experiencing one price drop after another. Drops between 5% and 10% are consistent. This is the $1 million to $2 million price range – I see it happening daily.
This information will creep into the reports that we’ll see next month on Days On Market. This may be a DOM bottom to this point.
And, we might start to see an uptick in the DOM because of some of the price drops and data point.
Point number three is the number of Active Listings.
As you can see in this Delray beach chart, the number of listings bottomed back in November of last year at 345 properties. Today, it stands at 545 properties. That’s an increase of about 50% in the last seven months. That coincides with what’s happening in south Florida. Its number of listings bottomed in January at 14,500 properties. Today it stands at 22,600 properties for almost a 50% increase.
If this information is of value, you may want to subscribe to my weekly e-letter. In it, I write about inventory every week and how inventory itself is making the real estate market shift on its own. You can subscribe here.
In summary, the Delray beach real estate market is strong. But it’s not as hot as it was at the beginning of the year, or in 2021. Back then open houses were flooded with people and prices were going through the roof with multiple offers. Things changed in June because inflation is now taking effect. Higher mortgage rates are now taking effect. And the overall sentiment of both buyers and sellers is changing.
We’ll see what takes place in July. We will see how the seasonality effect digs in. We’re now in wet season, or… hurricane season. This is the time of year when things slow down.
I’ll be back next month with a complete, yet short, overview of how that market fared in July.
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Delray Beach Monthly Real Estate Market Update – June Here’s how things went in the Delray Beach real estate market in June.
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