“The Palm Beach market shows no signs of cooling off in the first quarter of 2022. Undeterred by higher mortgage rates, buyers continued to seek more space and second homes throughout Palm Beach and its bordering communities. With homes selling at record paces, the market is still extremely competitive and in very high demand. That same demand is driving prices across all product types with townhouse prices reaching record-highs, climbing 53% since last year.
And while sales across the Palm Beach area have decreased year-over-year, this may directly reflect the incredibly limited inventory and does not signal a slowing market. Because there is nothing like living under the Palm Beach sun, 2022 started with terrific quarterly results, and we anticipate continued strength through the remainder of the year.”
– John Hackett, Senior Managing Director, South Florida
Palm Beach Highlights
Minimal inventory, shrinking days on market, plus still-rising prices are clear indicators that the Palm Beach market is as in-demand and competitive as ever. First Quarter 2022 is setting the stage for what’s sure to be another impressive year.
- With increasingly sparse inventory driving prices, single-family home median and average price both increased year-over-year, with median price seeing a 44% increase and average price rising 11%.
- Demand for luxury single-family homes remained steady in 1Q, with at least five homes sold for over $30M and three over $40M.
- With nearly half of all single-family home closings over $10M, median price hit an all-time high.
Undeterred by higher mortgage rates and new COVID-19 variants, buyers are still on the hunt for more space or a second home in the ultra-desirable Palm Beach market.
- Though condo/co-op sales fell 23% annually, demand was clearly evident as 1Q 2022 was the seventh consecutive quarter of 100+ apartment sales.
- Even with fewer sales annually, condo/co-op sales volume increased to $245M, up 42% from 4Q 2021 due to a 21% increase in average price year-over-year.
- First Quarter 2022 is the fifth consecutive quarter with an annual decline of days on market for single-family homes. At 98 days, this is 21% lower than last year.
Outside Palm Beach
Palm Beach is as hot as ever, which means the limited inventory is driving interested buyers into adjacent neighborhoods where they can reap the benefits of a Palm Beach lifestyle. The robust demand is pushing prices higher across all submarkets and product types, and further driving inventory across most areas to new lows.
In the area from Jupiter Island to Singer Island, single-family home sales fell 19% YOY to 71 closings and condo/co-op dropped 21% versus last year.
- Condo/co-op average price and median price reached year-over-year all-time highs of $949K, and $670K.
- For single-family homes, both average and media price climbed over 30% with a doubling of sales over $10M, with median price achieving a record high due to high-end sales over $13M.
- While single-family home sales didn’t meet last year’s record high, because of the higher prices, sales volume increased 12% annually to $269M.
In the area from West Palm Beach to Lake Worth, single-family homes sales fell only 3% from 2021, while condo/co-op deal activity decreased 27% year-over-year to 148 closings.
- Single-family average price and median price continued to rise, as the number and market share of sales over $500K increased and the market share of sales over $4M quadrupled.
- Condo/Co-op sales fell annually for the first time since Third Quarter 2020 because of low supply. However, there is still active demand, as First Quarter 2022 was the sixth consecutive quarter with over 100 closings.
- Average days on the market for condo/co-op sales dropped a remarkable 64% to just about one month, versus over a year in First Quarter 2021. Units with waterfront and water views lead the decline, as many signed in under 30 days.
The area from Hypoluxo Island to Highland Beach saw an annual decline in single-family home and condo/co-op closings year-over-year, with single-family homes seeing a sharp decline of 51% versus a strong first quarter last year.
- Single-family homes average price rose 21% annually to $6.9M, driven by several high-priced sales over $10M, and a greater market share of sales over $5M.
- For the first time in over five years, there were no sales under $500Kand with an incredible decline of 92%, homes prices from $500K to $1M were only the market for an average of eight days.
- Condo/co-op average price jumped to over $1M , climbing a remarkable 56% quarter-over-quarter.
Delray Beach saw an annual decline in single-family home sales and condo/co-op sales due to incredibly low inventory.
- With only 71 homes listed for sale, single-family sales fell 7% YOY, however rising prices led to a 3% annual increase in sales volume to $158M.
- Condo/co-op average price rose 17% versus last year as the market share of sales under $500K decreased by 33%.
- Townhouse sales fell 28% YOY, due to very limited inventory across most submarkets.
- Annually, the average sale price skyrocketed 53% to $1.6M versus last year. The growing market share of sales over $2M was a substantial factor. This also led to median price increasing 33% YOY.
- Following the ever-rising prices, sales volume was also up 10% annually to $164M.
- Days on the market fell by 30% annually with an average of transactions listed for only 66 days.