“In the second quarter of 2023, Palm Beach’s real estate market continues to showcase its resilience and allure, despite a slowdown in sales compared to last year. There is undeniable demand, particularly for condos/co-ops (with their median and average price hitting record highs) and ultra-luxury-priced single-family homes because of the unwavering appeal of this coastal paradise. And, because of replenished inventory, prospective buyers looking for the classic Florida lifestyle now have additional options to explore.”
– Pamela Liebman, Corcoran’s President & CEO
Palm Beach Highlights
The second quarter of 2023 saw the Town of Palm Beach experience an annual decline of sales across both single-family homes and condos/co-ops compared to last year’s high number of closings.
- Despite the decline in closings, sales volume for single-family homes remained 46% higher than 1Q 2023, driven by more than double the number of closings this quarter over $20M.
- The median and average prices of condos/co-ops increased annually, setting new record highs this quarter.
- Average price rose 4% YOY to $2.2M, while median price was up 15% annually to $1.3M.
- The single-family ultra-luxury market demonstrated strong demand, with this quarter seeing twelve sales over $15M, including several over $60M.
The rising inventory levels across the Town of Palm Beach offer prospective buyers an abundance of options to partake in the alluring and appealing Palm Beach lifestyle.
- Single-family inventory rose 70% annually. This is the third consecutive quarter of single-family inventory expanding over 50%.
- Condo/co-op inventory rose 68% YOY, with 80% of the available listings concentrated in the South End.
- The average days on market for single-family homes increased for the second consecutive quarter, up 178% YOY to 168 days. Condo/co-ops also saw an annual increase of 104% for days on market, with an average marketing timeline of 81 days.
Outside Palm Beach
Despite a slowdown in closings across Palm Beach’s neighboring markets, there is still noticeable demand, as reflected in the continuous rise of price indicators in most areas. Furthermore, prospective buyers will be pleased to know that the inventory has been replenished, offering plenty of options for those seeking to make the most of Florida’s coast.
In the area from Jupiter Island to Singer Island, single-family home sales increased 23% YOY to 69 and condo/co-op closings declined 27% YOY.
- Average and median prices showed upward trends across all product types. Condo/co-op average price reached a new record high due to a reduced market share of sales below $1M and single-family average and median price saw a double-digit increase because of more sales exceeding $5M this year versus 2Q 2022.
- Single-family home inventory was down 8% this quarter, hitting its lowest level since 1Q 2022. Meanwhile, condo/co-op inventory expanded by 59% YOY, resulting in 204 available listings at the end of the quarter.
In the area from West Palm Beach to Lake Worth, pricing metrics varied by product type this quarter, with single-family average and median price slightly declining and condo/co-op average prices experiencing double-digit increases.
- Closings decreased by double-digits YOY for both single-family homes and condos/co-ops, the fifth consecutive quarter of a decline for single-family homes and the sixth for condo/co-ops.
- The 4% YOY decline in single-family home average price is the first dip since 2Q 2020.
- Median price for condo/co-ops in this submarket hit a new record high of $706K due to new development closings taking place this quarter in the area.
- Inventory for condo/co-ops increased 76% versus last year with 220 active listings available for potential buyers at the end of June.
The area from Hypoluxo Island to Highland Beach saw double-digit declines in closings for both product types compared to a year ago.
- Despite this annual decline, compared to 1Q 2023, condo/co-op sales jumped 81%.
- Because of new development closings, condo/co-op average price reached a record high this quarter, hitting $2.1M — a 110% annual increase.
- Days on market for single-family homes averaged almost two months longer than compared to last year as more sales this quarter were listed for over 100 days.
Delray Beach single-family home sales remained flat YOY, but rose 17% versus 1Q 2023, while condo/co-op sales fell by 8% YOY.
- Single-family median and average price rose 19% and 5% YOY as the market share of sales over $2M expanded 10% this year.
- The condo/co-op market displayed its fifth consecutive quarter of double-digit gains in both the median and average sale price.
- Inventory, while up for both product types, is still relatively constrained for this submarket with 30 available condo/co-op listings at the end of June.