I’m watching new data show up in the Delray Beach real estate market you should know.
Long time readers know I watch our housing supply closely. The supply side of our market had huge impacts on our recent market. For example, when our inventory bottomed in February 2022, prices were near their peak. But as supply is up 72% since last August, median listing prices are falling.
In fact, of the 1,646 active listings in the Delray Beach real estate market today, the current median price drop is 7.4%. The average price drop is 8.7%.
But over the last 12 months, Delray Beach real estate prices are up 12% this April over April 2023. On a year-over-year basis prices are up just over 13%.
Delray Beach Real Estate Data is Show a New Trend Forming
In past essays, I’ve shared how Months of Supply (MOS) rose from last August until early this year as overall supply rose as well. Recall, when MOS is below six months, it’s a sellers market. Above six months it’s a buyers market.
Last August, MOS was 4.1. Then it raced up to a peak this February at 6.5. So we went from a sellers, to a buyers market in those six months.
Today, MOS is down to 5.6. In other words, we’re trending back into a sellers market territory. Here’s what it looks like:
When I look at the entire Florida real estate market, it’s even more pronounced. Florida’s MOS went from a 6.2 to a 4 today – a stronger sign of a sellers market.
So the question today is this: if we know median listing prices are down 7.4%, while MOS is falling again… are we seeing the end of recent price reductions for the immediate future?
I ask this as just like on Wall Street, a normal correction is about 10%. That’s when a stock index like the S&P 500 or The Dow falls 10%. That’s when buyers sense a correction may be ending and return to the market pushing prices back up. It’s a normal occurrence.
I’ve been writing a lot about price reductions this year and how Delray Beach real estate home sellers have been in “denial” about the current price of their properties. I still stand by that as I see mis-priced properties on a daily basis. Don’t be that seller.
Don’t be that Delray Beach real estate owner who after reviewing current data and knows the market price for your home is $545 per square foot (ft2.), yet lists it for $649 ft2. Even though the current trend looks to be favoring sellers, there’s is still a lot more inventory competition today than there has been in the last five years.
Separate your thinking from other home sellers and list your home at the current value.
Remember, things change on a local level fast. And Delray Beach real estate is not immune to market changes. No market is.
I’ll be keeping a close eye on this important MOS data for you.
(main photo: Historic Swinton Ave home under renovation)
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*** If you’re thinking a Delray Beach real estate homeowners and wants to know your current home value, no fluff, with real data that helps you understand today’s market so you make the best selling decisions available… Call me at 561-777-4089. I’ll answer. Or click here
*** If you want to learn more about sellers vs. buyers market, my recent blog may be useful
*** Good News on the Florida homeowners insurance front. 9 insurers filed for rate reductions, while 10 insurers won’t be increasing rates
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*** South Florida’s Surging Supply Continues ***
* Last week there were 46,589 available…
* This morning’s Inventory is 46,778 *
… supply was UP 189 Units last week ***
Surging Supply is the BIGGEST theme in real estate today. But trends can change fast like today’s new about Months of Supply (MOS) Stay current with my weekly eLetter and please share with others you think may find this valuable.
