“The first quarter of 2023 had sales returning to pre-pandemic levels in Palm Beach, with closings for single-family homes and condos/co-ops hitting their lowest levels since 2016 and 2017. However, with average prices rising, even throughout Palm Beach’s adjacent areas, it’s evident that this area is still rife with demand. In good news for buyers, inventory continues to multiply, with the number of homes of all product types increasing by double and triple digits, giving buyers ample opportunity to find their ideal home in the ultra-desirable Palm Beaches.”
– John Hackett, Senior Managing Director, South Florida
Palm Beach Highlights
During the 1Q 2023, the Palm Beach closes sales activity returned to levels similar to the first quarters in both 2016 and 2017.
- Compared to last year’s strong performance, single-family home and condo/co-op sales dropped by 40% and 47% respectively.
- Sales volume, while down annually for both product types due to fewer sales, increased readily quarter-over-quarter, with single-family home volume up 45% to $373M, and condo/co-op sales volume rising 111% to $183M.
- Average price was up 42% annually for condos/co-ops as there were fewer sales under $500K versus last year. At $2M, this is the second highest quarterly reading after Second Quarter 2022.
Across Palm Beach, inventory levels are on the rise, providing much needed supply to new and interested buyers in this coveted market.
- Single-family inventory rose over 50% annually for the second consecutive quarter, with 79 active listings at the end of March.
- Concentrated in the South End, the condo/co-op market had 231 available listings at the end of March, more than triple the number of listings available last year.
- The average days on market for single-family homes rose by almost three months annually and four months quarterly. Condo/co-ops saw listings on the market for an average of 83 days, a 25% YOY jump.
Outside Palm Beach
Though sales across Palm Beach’s adjacent markets have slowed in the first quarter, demand is still evident through still-rising price metrics in most areas. Additionally, in good news for eager buyers, inventory has also seen a much-needed replenishment meaning that there are plenty of options for those wanting to take advantage of Florida’s sun and sand.
In the area from Jupiter Island to Singer Island, single-family home sales fell 30% YOY to 50 and condo/co-op closings dropped 40% YOY. Though sales are down annually, sales volume for single-family homes still surpassed $100M indicating active demand.
- Price metrics across both product types in this area were down annually. Single-family home prices were down due to fewer sales over $10M, while condo/co-op prices declined because of fewer sales over $1M.
- Condo/co-op Inventory in this submarket expanded by 172% YOY.
In the area from West Palm Beach to Lake Worth, pricing metrics for both product types continued to rise this quarter, with average price for single-family homes hitting an all-time high at $1.2M.
- Closings declined across both product types, with single-family homes hitting its lowest first quarter level in five years.
- The median price for condo/co-ops also set a record this quarter at $498K, a 16% annual increase.
- Inventory for condo/co-ops increased 275% versus last year’s very low number with 221 active listings available for potential buyers at the end of March.
The area from Hypoluxo Island to Highland Beach saw double-digit declines in closings for both product types compared to a year ago.
- With a decline in the market share of luxury sales over $7M, single-family median price dipped 11% annually to $2.8M.
- Condo/co-op price metrics increased for the eighth consecutive quarter despite fewer closings in this area throughout recent quarters.
- Inventory for both product types increased this quarter, with single-family homes experiencing a 78% annual rise in inventory to 87 listings. Condo/co-ops saw 120 active listings at the end of March, a 118% YOY spike.
Delray Beach experienced an annual decline for both condo/co-ops and single-family home sales this quarter, making 1Q 2023 the sixth and seventh consecutive quarters of annual declines in closings.
- Single-family median price rose 43% YOY because of a notable gain in the market share of sales over $2M.
- Condo/co-op average and median prices both rose year-over-year at 20% and 15% respectively.
- While condo/co-op inventory was up 81% this quarter, at under 30 active listings, supply in this area is still extremely limited.