The South Florida luxury real estate market is showing signs of (some) firming up.
So you can follow along, and as my business is in Delray Beach, I’ll start with the Delray Beach 33483 zip code. This is where most of Delray’s luxury real estate is east of the train tracks. A few things jump out from the second quarter compared to my last update:
* Month of Supply (MOS) fell from 10.34 to 8.23 days (significant)
* Time it takes to sell rose from 48 to 73 days
* July saw the lowest number of homes sold compared to the last 3 years sold in July (not shown)
And as you can see in the image below, compared to my last update on May 21st, the Delray Beach luxury market is becoming less of a buyers market. That’s similar to the South Florida Luxury Real Estate market I’ll share below. Look at the orange bar to see how its moved more to the center compared to May.
This is a big move in just 90 days. As low season now has 60 days to go, if this trend away from a buyers market continues to show up in charts, it could make for an interesting and busy high season. As you’ll read below, the South Florida Luxury Real Estate data in various communities is similar.
Remember, when MOS is below 6 it’s a sellers market. Above 6 it’s a buyer market. So the Delray Beach luxury market remains in a buyers market… for now.
Here’s some more data to share that you can’t see in the graph above:
The year-over-year median price change is up 11.4%. At the same time, the number of luxury homes sold is down 10.4%. This is interesting due to the number of listings. For context, last month’s luxury supply was 247 units compared to July 2022 at just 150 units. So with 65% more homes available, the number of sales are down.
I find the Sold-to-List ratio interesting today. In May it was 89.9. For this report it stands at 99.9. This shows strength for sellers. I interpret this as sellers have finally woken up to the buyers market and are pricing their homes more accurately. Instead of having a huge gap in this metric, it’s tightening. So, there’s less negotiating on prices as they are more market-reflective.
South Florida Luxury Real Estate Round Up
I like to compare the Delray Beach luxury real estate market with surrounding areas to give you a broader perspective. Below are some South Florida Luxury Real Estate communities and July 2025 data for a) Months Of Supply and b) number of units sold year-over year:
* 33432 Boca Raton: 9.6 and UP 18%
* 33062 Hillsboro: 13.0 and down 6.8%
* 33480 Palm Beach: 13.4 and UP 7.6%
* 33064 Lighthouse Point: 8.8 and down 13.4%
So, we’re still in a buyers market, yet the data has shifted from strong to more normal. In other words, sellers are liking the current data as it’s “less bad.” Buyers still have plenty of supply to consider, but buyers shouldn’t get lazy as peak buyers market comes to an end before I write this report in Mid November.
And there’s one data point to keep your eye on: our South Florida luxury real estate housing supply. Regular readers know I provide a weekly update at the end of this essay. Well, let’s go back to May 21st and my last luxury update. Back then South Florida supply had 63,227 units on the market for sale.
Today, that number has fallen 8.25% and sits at 58,008. That’s over 5,220 units gone from the market in just 90 days.
In my last South Florida Luxury real estate luxury report I said we’d continue to see weakness this summer, which is evident. But the data is saying the market is “less bad” for sellers as we enter the later months of the year.
Part of that may be due to the continued price drops I see each day. 2025 continues to be the transitional year where data caught up to sellers and starred them in their face. South Florida luxury real estate owners had little choice but to lower their price if they were true sellers.
The next 90 days will be interesting as we’re seeing mortgage rates continue to fall and are at the lowest rate since Nov 2024. At the same time, the months of supply is retreating from their 5-year peak last spring near 10.9 months.
Should data continue to get less bad as low season comes to a close in late October, and demand comes back we could see a stronger selling season this winter.
This may be the email I refer to marking the moment we hit peak buyers market in the peak of buying season. So keep you eye on the South Florida luxury real estate data… things are starting to change fast.
(Main photo: A Historic Marina District luxury home)
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*** The South Florida Luxury Real Estate “super luxury” market in South Florida continues to thrive. Here’s the highest priced home sold in Delray Beach this year
*** With luxury in mind, my latest essay delves into how to add value to your home in ways that work
*** Have fun fun this Saturday celebrating “Party in Paradise: Delray’s Tribute to Jimmy Buffet” at Old School Square
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*** South Florida Real Estate Inventory is ABOVE 2019***
Last week’s supply was 58,478
Today’s supply is 58,008
*** Supply is Down 470 units last week ***
*** Supply is DOWN 11 of 12 weeks***
