The South Florida luxury real estate market is filled with sad eyes.
(You can follow along and see what what I wrote back on January 29th – I write this luxury market update every quarter).
To keep this update easy to follow, 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:
* Months of Supply (MOS) rose from 8.05 days to 10.34 days
* The time it’s taking to sell fell from 80 to 48 days
* The median sold price rose from $727,500 to $1,050,000
And as you can see in the image above, compared to three months ago, the Delray Beach luxury market is slipping further into a buyers market. Look at the orange bar to see how far it is to the right compared to the Jan 29th report.
Remember, when MOS is below 6 it’s a sellers market. Above 6 it’s a buyer market. The South Florida luxury real estate market is deep into buyers market territory.
Here’s editorial on the rest of the 33483.
The year-over-year median price change is up 10.2%. But at the same time, the number of luxury homes sold is down almost 29% this April v. April 2024… and the year-over-year number of sold units is down just shy of 5%. So yes, prices are falling.
But here’s the data point that catches my eye the most: the average Sold-to-List ratio over the past 12 months is 89.8. That means a home listed at $2 million is selling for $1,796,000. Or a $1 million listing is selling, on average, for $898k.
South Florida Luxury Real Estate Zip Code Review
Moving on, I like to compare the Delray Beach with the South Florida luxury real estate market to give you a broader perspective. Below is the April 2025 data for a) Months Of Supply and b) number of units sold year-over year:
* 33432 Boca Raton: 11.5 and down 6.5%%
* 33062 Hillsboro: 13.08 and down 16.5%
* 33480 South Palm Beach: 16.86 and UP 8.2%
* 33064 Lighthouse Point: 7.65 and down 17.8%
Since Q1, the narrative is the same – it’s a firm buyers market. There are less homes being sold, while Months of Supply continues to soar. That’s consistent with the South Florida luxury real estate market’s rising inventory.
In my January update, there were 58,873 units on the market. Today’s supply sits at 63,273. So in three months, supply is up 4,400 units or 7.5%% (less supply expansion than last report). And since supply bottomed in May 2022 at 14,445, it’s now up a staggering 338% in just under three years.
As I said in my January South Florida luxury real estate report, I believe 2025 is a year of market weakness. We’ll continue to see price erosion. And as our high season is now behind us, I expect when I write this letter in the depths of summer’s low season – in late August – we’ll see more market weakness.
For now, I continue to see more South Florida luxury real estate mis-priced that end up lowering their price in a shorter time frame. Remember, when listing your luxury home, your sweet-spot is the first 14 days. Beyond that, it’s the Dutch Auction – lowering your price to chase buyers. And that’s not a winning strategy in today’s South Florida luxury real estate market.
P.S. If you own a “Super Luxury” home valued over $5 million almost anywhere in Palm Beach County, you’re smiling. This specific market is as strong as its ever been with the number of sales in double digit growth. There’s an enormous amount of super high-net worth investors flocking to South Florida gobbling up the finest real estate available.
(Main Photo: From the Delray Beach Yacht Tour overlooking Tropic Isle luxury homes)
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*** Speaking of luxury real estate, I spent time researching and writing about the Tropic Isle Delray Beach community. It’s luxury at its finest.
*** Downtown Delray Beach Is a top-ranked walkable city
*** Are you preparing to make your South Florida luxury real estate dream a reality as prices lean your way? Get my list of the finest Delray Beach homes, townhomes and condos between $1M – $10m
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*** South Florida Real Estate Inventory is ABOVE 2019***
Last week’s supply was 63,486
Today’s supply is 63,227
Supply was down 259 units last week
*** Supply is UP 9,7118 or 18% in 2025 ***
