In May, we witnessed massive technical (charts) changes in our Delray Beach buyers market.
Whether it’s following the stock market, or real estate market… following trends is an important part of making good business and investing decisions. You don’t want to go against a trend, you want to invest with it.
And when a trend breaks, it’s time to pause and pay closer attention to why.
Case in point is the image below. This is the Multiple Listing Service (MLS) data published June 1st showing the 6 key market indicator graphs. Here’s how I interpret these:
* Number of (Active) Listing, Listing Prices, Absorption Rate (Months of Supply), and Price Volume all saw a break in their trend to the downside at the same time. All four of these metrics experienced between 7-9 months of an upward trend.
On the surface, I can’t come to any conclusions as this is a one-month blip. However, I’ll be watching this throughout June to see how these continue to trend as we get deeper into slow season and our current buyers market.
Proof This Buyers Market Is Gaining Momentum
* Days on Market (DOM) and Sold-to-List Ratio (SLR) both had a decisive break in their trends. The DOM chart above shows it averaged 83 days over the last year and ripped higher to 106 days in May. The SLR chart below shows it averaged 89.5 last year then crashed to 86.9 last month.
You may think these are insignificant events. But, when it comes to market psychology it’s enormous. Is this buyers market, home buyers are going into a negotiation believing it now takes 28% longer for sellers to sell. And the SLR says a home listed at $1 million was selling for $895k is now selling for $869k. That is a drop of almost 3% in just one month.
So although the first 4 charts were not of significance… the DOM and SLR charts are enough to create a narrative that empowers buyers when negotiating in this buyers market. In other words, there isn’t anything in these charts that help sellers, and only support buyers.
Our Buyers Market Is Real
This past weekend I saw these charts playing out in the market. I showed 2 of my buying customers a half-dozen properties.
One seller was present, and while my buyer was in another room, the seller whispered to me, “I just need it sold.” And another listing agent said to me, “the seller wants you to know his motivation is high.” And one other informed me, “the sellers can’t wait any longer.“
Wow. These are first-hand, boots-on-the-ground accounts from our Delray Beach buyers market.
If you’re newer to my weekly eLetter, or haven’t read my last few essays, you may want to get caught up on what’s going on here and here.
This buyers market is a trend that’s gaining momentum. In my May 14th eLetter I wrote, “the pendulum swung” – to the buyers side. I didn’t realize how strong that statement would become.
(Main Photo: NE 2nd Ave. Bankers Row Historic home with stunning terrace and balconies)
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*** As a city, Delray Beach is on a long winning streak. I love Delray and am bullish on it for years to come and here’s why
*** June is National Homeownership and Pride Month. Delray Beach celebrates Pride month June 14th here
*** Delray’s BEACH for the 2nd year in a row voted Best Beach In Florida by USA Today
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*** South Florida Real Estate Inventory is ABOVE 2019***
Last week’s supply was 63,260
Today’s supply is 62,388
Supply was DOWN 872 Units last week
*** Supply is UP 8,839 unit or 17% in 2025 ***
