“Follow the trend all the way to the end.” (Famous quote by stock investing legend Stan Drukenmiller)
Well, I’m seeing new trends emerging in our local Delray Beach real estate market you may find interesting. In no particular order of importance:
* The time it takes to sell a property is about to fall. The chart below shows the national average days. Like clockwork, you can see it takes longer to sell in January and faster in July. But that is a complete opposite of how fast homes sell in Florida due to our winter high-season effect. Here, homes sell faster in January than in July when our population and tourism wanes.
Delray Beach Real Estate – numbers, numbers, numbers
* The supply of homes in the Delray Beach real estate market is up 31% since August 1st. In South Florida, inventory is up 34% in the same time period. This is something we haven’t seen in over four years. Prices tend to soften when inventory floods the market. Prices haven’t fallen yet (haven’t shown up in the data), but the number of price reductions is on the rise.
* Speaking of price drops, here are a couple categories with the most current data:
a. the median dollar drop is $19,950, or 5.2%
b. the average dollar drop is $47,623, or 6.3%
These are not alarming numbers by any means, but I’m watching the pace of price reductions each day.
* The number of homes sold is falling. For Delray Beach real estate, there’s a 3-year trend of falling home sales on an annual and seasonal basis. In November, just 207 units sold. The worst month of sales was back in January at 187 units. To put context to this, over the last 30 months the Delray Beach real estate market sold 327 units on average.
This coincides with the national data where the number of homes sold is down from about 5.8 million units to about 4 million units in 2023. That’s a 30% drop in the number of properties selling.
* Delray Beach real estate Affordability increased by 8 points last month due to mortgage rates falling almost 100 basis points (1%). At the same time the November year-over-year average sales price was down 11%.
So whether you look at this market from a sellers or buyers perspective… it’s getting better for both sides. For sellers, we’re entering the phase when properties sell fastest with rising demand and better affordability. For buyers, mortgage rates are down, affordability got better, and the choice of properties is on the rise.
Speaking of rising Delray Beach real estate supply rising… have a look at the latest new construction going on, here.
Its going to be a fabulous winter!
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*** Inventory is Rising FAST – UP 36% in 114 days! ***
* Last week there were 36,829 available…
*** This morning’s Inventory is 37,319! ***
That’s an INCREASE of 490 Units in One Week!
OR… up 5,114 in 6 weeks!
Inventory is UP 13 weeks in a row
The Latest Delray Beach Real Estate Trends
