“Palm Beach continues to be one of the most sought-after real estate markets in South Florida. Even as the area experiences the same economic headwinds as much of the country, the demand is still evident, with the average price for single-family homes hitting yet another record high.
But the good news for buyers: increasing inventory and abating prices across Palm Beach’s neighboring markets is a green light to go ahead and claim your piece of the Florida coast.”
– Pamela Liebman, Corcoran’s President & CEO
Palm Beach Highlights
With economic headwinds and rising mortgage rates, the Palm Beach market in the Third Quarter of 2023 experienced a dip in closed sales, reaching its lowest point in over five years. Yet with the average price for single-family homes hitting a record-high, Palm Beach proves its enduring allure and remains the jewel of South Florida’s property scene.
- Single-family home sales were down 23% annually, the ninth consecutive quarter of a double-digit annual decline.
- Average price for single-family homes reached an all-time high at $27.5M, a 100% YOY increase. Single-family median price also hit a new record-high: at $18.5M. This is an 82% YOY increase and the fifth of the past six quarters with median price over $10M.
- Even with the decline in single-family closings, sales volume still rose considerably — up 54% over last year to 275M.
- Condo/co-ops sales fell 47% YOY, the sixth consecutive quarter, with an annual decline of over 30%.
- Condo/co-ops prices were down this quarter, with average price falling 32% and median price down 17%. These figures are partly due to fewer sales this year over $5M.
As sales continue to slow, inventory in Palm Beach steadily rises, giving prospective buyers a variety of choice in this highly desirable market.
- Single-family inventory rose 54% YOY, with 57 available listings at the end of September, while condo/co-ops had 176 available listings — a 42% annual increase.
- Average days on market for single-family homes was up 122% versus last year, to 144 days. Nearly half of all single-family sales this quarter had marketing timelines over three months..
- Third Quarter 2023 marked the fourth consecutive quarter with double-digit annual increases in average days on market for condos/co-ops.
Outside Palm Beach
Overall, closed sales rose across Palm Beach’s neighboring markets, with only Hypoluxo Island to Highland Beach remaining level to last year. However, active buyers are in luck as inventory continues to increase and prices in most areas are on the decline.
In the area from Jupiter Island to Singer Island, single-family home sales increased 47% YOY to 50 while condo/co-op closings declined 2% YOY.
- Even with the slight decline in sales, sales volume for condo/co-ops still increased 25% YOY to $102M due to four luxury sales over $3M.
- Single-family home sales volume was also up this quarter to $139M, a 30% year-over-year increase.
- Median and average price for single-family homes fell by 27% and 11%, respectively, due to the shift in sales towards the lower end of the market. 31 of the 50 sales in this submarket were under $2M this quarter.
- Conversely, median and average price for condos/co-ops rose double-digits YOY — up 16% and 27%, due to 10 closings above $1M.
- Single-family home inventory remained level annually, but condo/co-ops saw a 52% jump in active listings, with 220 residences available at the end of 3Q 2023.
In the area from West Palm Beach to Lake Worth, single-family average price was down for the second consecutive quarter, falling 27% annually. Conversely, condo/co-op average prices surged 226% to a record-high of $1.8M.
- Condo/co-op sales were up 40% YOY, with 119 closings, the first annual increase in closings since 2021.
- Closings fell for the sixth consecutive quarter for single-family homes, with sales volume dropping 27% to $115M.
- Inventory for single-family homes increased 11% versus last year, with 275 active listings available for potential buyers at the end of the quarter.
The area from Hypoluxo Island to Highland Beach saw a double-digit increase in closings for single-family homes, marking the first annual increase in closings for this product type since Second Quarter 2021.
- Conversely, condo/co-op sales fell 13% YOY and 29% versus last quarter.
- Average price for single-family homes fell 41% annually, to $4.2M, while average price for condo/co-ops was down a slight 2% YOY to $891K.
- Third Quarter 2023 marks the fifth consecutive quarter of double-digit increases in inventory for condos/co-ops, with inventory rising 21% compared to last year. There were 103 available listings to select from at the end of September.
Delray Beach single-family home sales declined 9% annually, while condo/co-op sales jumped 59% versus Third Quarter 2022.
- Third Quarter 2023 was the first time since Third Quarter 2021 to see an annual increase in condo/co-op closings.
- Average and median price for both single-family homes and condos/co-ops experienced double-digit annual declines. For single-family, this is due to a greater market share of sales under $2M, and for condo/co-ops, under $1M.
- Inventory remains constrained for condos/co-ops, down 15% YOY; however, single-family is on the rise, with 130 listings available at the end of the quarter – an increase of 38% YOY.