1255-n-ocean-blvd

South Florida Real Estate Market Quarterly Report – Q4 2016

Sales in the Town of Palm Beach continued to lag versus a year ago, with sales down across all but one area.  Continuing the trend seen last quarter, condo/co-ops fared worse than single family homes in sales but better in price figures.  Days on market fell in most areas, with the exception of the South End condo/co-op market.

Single family home sales declined 11% year-over-year, but this represents just two fewer closings than a year ago. Overall, Town of Palm Beach had a significant drop of 50% in average price, and 46% in median price year-over-year. This is attributed to a decline in high-priced sales: Fourth Quarter 2015 had nine closings over $5 million and one over $30 million, while Fourth Quarter 2016 saw just four sales over $5 million and none over $30 million.

Single family sales in the North End saw the largest declines in pricing, with a 57% drop in average price and a 70% drop in median price. In Fourth Quarter 2016, 25% percent of closings in the North End were at prices above $5 million, compared to 66% in Fourth Quarter 2015. In town also saw a decline in average price of 28% and a decline in median sale price of 38% year-over-year. Homes in town experienced an impressive 69% decline in days on market, with half of the homes selling in under 30 days in Fourth Quarter. The sale of an $11.3 million home last year drove up pricing, as well as a majority of sales being over $4 million in 2015, compared to only a third of sales being over that price in 2016.

Palm Beach condo/co-op closings dropped 37% year-over-year. Average condo/co-op price stayed nearly the same, with a decline of only 2%. Meanwhile, median closed condo/co-op price decreased 18%, largely due to a rise in the market share of South End sales.

Condo/co-op sales in town dropped 46% year-over-year. Average price stayed nearly the same, but median price increased 44%. Average sale price in 2015 was elevated by the record-setting sale of a $12 million condo at Breakers Row. However, Fourth Quarter 2016 had 12 sales over $650,000, only four less than in the same period the year prior, pushing up median price to over $1 million. South End experienced similar results, with closed sales down 33%, but average price increasing 9%, and median price only down 1%.

Download the full report here.