Weakness in the South Florida luxury real estate market continues.
(You can follow along and have a look at what I wrote back on October 23rd – I write this update every quarter).
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 year-end data compared to my last update:
* Months of Supply (MOS) rose from 6.93 to 8.05 days
* The time it’s taking to sell is still hovering at 80 days
* The median sold price fell from $870k to $727,500
And as you can see in the image below, compared to three months ago, the luxury market is slipping further into a buyers market. To recap, when MOS is below 6 it’s a sellers market. Above 6 it’s a buyer market.
The 33483 weakening story doesn’t end there.
The year-end 2023 median sale price came in at $1,075,000. Year-end 2024 was just $999,060. That’s a 7% drop year over year. And the number of luxury homes sold fell from 388 to 371 for a 4% drop. But here’s where it hurts. The sold-to-list ratio fell from 94 to 87.5. So, a home listed for $1 million sold for $940k in 2023, but only $875K at the end of 2024.
As of this morning, the median price drop for current active listings in this market is now down 7.98%, or a $100k beating.
South Florida Luxury Real Estate Zip Code Review
I like to compare the Delray Beach with the South Florida luxury real estate market and surrounding areas. Below is the 2024 year-end data on a) Months Of Supply and b) # of units sold:
* 33432 Boca Raton: 9.74 and down 2.2%
* 33062 Hillsboro: 10.13 and down 9.1%
* 33480 South Palm Beach: 15.72 and down 9.9%
* 33064 Lighthouse Point: 6.62 and down 12.6%
South Florida luxury real estate is a firm buyers market. There’s less homes being sold, while Months of Supply is soaring. That’s consistent with the South Florida real estate market’s rising inventory.
In my October update, there were 51,313 units on the market. Today’s supply sits at 58,873. So in three months, supply is up 7,560 units or 14.7%. And since supply bottomed in May 2022 at 14,445, it’s now up a staggering 307% in just under three years.
I believe 2025 is the year when we see prices in the South Florida luxury real estate market fall in unison. By how much is anyone’s guess. So I’ll share my next update as high season ends in early May. At that point we’ll know how the South Florida luxury real estate market is holding up… or down.
P.S. Watch my latest Delray Beach Market Update video where you’ll find similarities in that update with today’s essay.
(Main Photo: My new drone photographing Tropic Isle Harbor looking south toward Highland Beach)
—————————————————
*** The Delray Beach ATP Tennis Tournament is weeks away. Get your tickets here
*** New Restaurant Alert: The Modern Rose. The ambiance, and coffee/tea selection, will make you… happy
*** Investor Alert! “Follow the money” is how smart investors succeed. In this case, follow where the City of Delray is putting their money. Over the next half dozen years that’ll be in the northwest quadrant of downtown. And this property is right in the midst of it all waiting to capitalize on the inflow of capital to the area
——————————————-
*** South Florida Luxury Real Estate Inventory is Now ABOVE 2019***
Last week’s supply was 57,722
Today’s supply is 58,873
That’s a rise of 1,141 units last week
*** That’s a rise of 4,657 or 8.6% This Month! ***
