The number of new listings hitting the Delray Beach real estate market is soaring while the time it takes to sell them is falling like a rock.
One of my big themes for 2023 is housing supply. Take a look at this first Delray Beach real estate chart.
As you can see, it’s hovered around 1200 units. It bottomed in August at 990 units. and since August in the last 60 days, it’s up to 1125 or a 13% rise.
Now take a look at this next chart from my weekly e-letter I publish every Wednesday.
This shows Broward and Palm Beach County. On the bottom, You can see inventory for the month of October rose over 3,600 units for a 13% increase. At the end of July, the number was 27,500 units. Since then, it’s reached 34,000, or a 25% increase in just three months.
The next chart is the average sales price for Delray Beach real estate. You can see, back in 2021, on the far left, from August – October, prices went from $476k up to $538k. So, we’re still seeing the same correlation of August – October.
You would think that when inventory goes up, prices should normally soften, right? This is what we call a market that is not behaving well.
Look at the days on market (DOM) chart.
You can see that in August Delray Beach real estate DOM peaked at 57 days.
August was when we hit the low of inventory for 2023. Since then, days on market has crashed 25% to almost 45 days. At the same time when inventory has risen over 25%. So one metric is coming down 25%, the other’s going up 25%. These should be going hand in hand. This is clearly a market that is not behaving well.
What about interest rates? As I mentioned last month, I said we’d see rates go above 8%, and they did.
Rates topped out at 8.03%. But as I am publishing this video the morning of November 3rd, take a look at this information you can see rates have plummeted from below 7.95% now to 7.38% just this week.
Let’s take look at the affordability. You can see last month it hit almost 63%. Anything above 50% in this chart says you’re most likely not going to be able to get a loan. Why? Because this is the percentage of your income that is used to pay for your monthly mortgage. So as prices go up with interest rates going up, you’re going to need more income to pay for that mortgage payment.
This week The FED came out and said that they have no plans on lowering rates in the foreseeable future. And last month I said that would probably be the case, but maybe in Q1 or Q2 2024. We might see some stabilization or rates going lower.
Next year, we’ll probably have some other sector of the economy that might go into a recession. So, it’s not one big recession, but it’s a bunch of different parts of our economy that are going into a recession. That’s why they say anticipate rates staying higher for a lot longer than you think.
For Delray Beach real estate market homeowners and potential home sellers, listen closely. Last month in my How’s the Delray Beach Real Estate Market update for the month of September I said right now is the ultimate time for you to start preparing your house to sell in advance of high season. Scroll to the 6-minute, 20-second spot. I remain committed to that.
Another video you can see is titled Why November is the Best Month for you to Be Selling Your Home. Watch that for a better grasp on what’s happening in our Delray Beach real estate market…
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Your Delray Beach Real Estate Market Update – October 2023 is full of new charts and data points that lead to one main idea: it’s never been a better time to sell based on the data. Have a look. The Delray Beach real estate market remains hot… but these things rarely last forever.
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