“The Palm Beach market is not immune to the changing economic conditions happening throughout the country. While it’s no surprise to see sales numbers ticking down, a key driver here has been the lack of available listings. With the anticipation of an uptick in available listings heading into Q4, the potential for more determined buyers to enter this unparalleled market is on the rise.”
– John Hackett, Senior Managing Director, South Florida
Palm Beach Highlights
Single-family home demand was active in Palm Beach. However, sales fell 44% annually versus a record-breaking 2Q and have returned to historical pre-pandemic levels.
In 2Q 2022, the Town of Palm Beach market continued to be one of the top performing real estate markets in South Florida. Pricing for single-family homes and condos/co-ops set new record highs.
- Average prices for both single-family and condo/co-op jumped significantly — up 53% and 87%, respectively.
- A remarkable 60% of single-family closings sold for over $10M, pushing median price to an all-time high of $14.9M — an 81% year-over-year increase.
- Ultra-luxury buyers are still out in force in the Palm Beach market, making 2Q 2022 the sixth consecutive quarter with five or more single-family homes closing for over $30M.
Even as prices climb and buying in Palm Beach remains incredibly desirable due to low taxes and the live-work lifestyle balance, the market shows signs of stabilization as the number of sales returned to pre-pandemic levels.
- Compared to a record-breaking 2Q 2021, in 2Q 202, sales for single-family homes and condo/co-ops both fell by 44% year-over year.
- Although condo/co-op sales fell annually, 2Q 2022 was the eighth consecutive quarter with 100+ apartment sales, and sales volume reached $347M, a 5% uptick due to increasing prices.
- While not quite achieving 2Q’s 2021’s record high, single-family sales volume still skyrocketed a remarkable 123% versus last quarter to $1B.
Outside Palm Beach
Similar to the Town of Palm Beach, the adjacent markets are seeing sales numbers retreat to pre-pandemic levels, and inventory is starting to rise. However, as buyers are lured to Palm Beach because of its desirable lifestyle, they continue to expand their search for a home into its bordering areas, pushing prices to record highs.
In the area from Jupiter Island to Singer Island, single-family home sales fell 47% year-over-year to 56 closings, and condo/co-op closings dropped 42% versus last year.
- Condo/co-op average price reached an all-time high of $1M, due to the market share of sales over $500K increasing 22% annually.
- For single-family homes, the average sales price decreased 30% annually; however, the median price increased 10% as the market share of homes under $1M fell.
- Inventory for both single-family homes and condos/co-ops saw a quarter-over-quarter increase — rising 103% and 44%, respectively.
In the area from West Palm Beach to Lake Worth, single-family home sales fell 21% from 2Q 2021, while condo/co-op deal activity decreased 41% year-over-year to 177 closings.
- Despite the annual sales decline, 2Q 2022 was the sixth consecutive quarter each product type saw over 150 closings, indicating healthy and consistent demand.
- Single-family average price and median price reached record highs, each rising nearly 30%, annually. Condo/co-op median price also hit an all-time high, climbing over 60% YOY.
- Inventory for both single-family homes and condo/co-ops both increased by over 100% quarter-over-quarter.
The area from Hypoluxo Island to Highland Beach saw an annual decline in single-family home and condo/co-op closings year-over-year, yet prices remain strong.
- The average single-family home price spiked 86% to $10.6M, driven in part by the record-breaking $173M sale of 2000 South Ocean Boulevard.
- The market share of condo/co-op closings over $1M grew 17% annually, resulting in all pricing metrics increasing over 30%.
- Across the board for all product types and price points, average days-on-market fell year-over-year. For single-family homes priced between $500K and $1M, the average was five days, while for condo/co-ops over $2M, the average fell below 12 days — a remarkable decline of over 80%.
Delray Beach saw an annual decline in single-family home and condo/co-op sales due to extremely low inventory, even though availability did increase from last quarter.
- Single-family median sales price rose to a record high of $1.9M, up 25% year-over-year.
- The average price for condos/co-ops rose 49% from last year, as the market share of sales under $500K continued to decline. In 2Q 2022, there were zero sales under $250K.
Townhouse sales overall fell 31% YOY due to the record-high number of closings in 2Q 2021. Closings remained level quarter-over-quarter.
- Annually, average sale price increased 28% to $1.3M. The growing market share of sales over $2M was a substantial factor. This also led to the median price increasing 37% YOY.
- Days-on-market fell by 24% annually, with an average of 36 days.