Our South Florida – and Delray Beach – surging real estate inventory is not getting mainstream attention, yet.
Longtime readers are either bored with me talking about this, or excited as I may be the only one out there doing so. There’s been nothing in newspapers or TV or the major online portals about our surging real estate inventory. Most of these sources are still talking about low inventory.
Case in point: Last week I had a “chat” on LinkedIn with an analyst from Sacramento, Ca. Real estate inventory there since last August is down about 62%. An expert in Denver told me their real estate inventory is down about 17%. Numbers are similar in midwest and northeast cities.
But in South Florida, our real estate inventory is UP a whopping 54% since August 2023 (see below).
And as you see in the chart above, Delray Beach inventory is up 62% in the same time period.
Last month, our real estate inventory was up 45% compared to January, 2023. During the same period, the number of sold units was down 9.5%.
Here’s where it gets interesting. With today’s real estate inventory overpowering demand, you’d think prices would be collapsing. I mean, when demand was crushing supply back in 2021/2022, prices went through the roof.
Well, as of last month, the median sales price was flat on a year-over-year basis. This is the first time we’ve seen prices not rise in over a half dozen years.
So, one can speculate if prices have now hit their peak, and maybe in the early stages of retreating. We know real estate is all about supply & demand. And with real estate inventory surging, will it be strong enough to change the trajectory of prices? Are we seeing to top of this real estate market now?
Stay tuned.
P.S. I released my new Surging Supply video yesterday. It’s loaded with images to help paint the picture of our local real estate market.
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*** It’s time for the Delray Beach Open Tennis Tournament. This year could be its biggest fan-attended event ever. Get your tickets now. It starts this Friday, February 9 through February 18th.
*** Last month, the #1 visited essay on my website was about Seagate Country Club. Mind you, I wrote that essay back in 2021. I plan to write a new essay and create a new video about the community in the coming months. But obviously folks are interested in real estate there. Here’s a current list of Seagate CC homes for sale
*** What’s your home worth? If you’re ready to have this conversation and would like me to create a review for you, start here
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*** Surging Supply – UP 54% Since August 1, ’23 ***
* Last week there were 41,539 available…
* This morning’s Inventory is 42,227 *
… supply is UP 688 units in the last week ***
