“The close of 2023 proved once again that Palm Beach is still one of the most popular markets in South Florida with annual growth in closed sales supported by a substantial surge in inventory. Despite a double-digit annual drop, single-family home prices settled at $11.6M, remaining steadfastly above $10M for three consecutive years. Meanwhile, condo/co-op median prices remained stable with a modest, but noteworthy, 2% increase from 2022.
Across Palm Beach’s neighboring markets, only Jupiter Island and Singer Island reported robust annual increases for both property types for both sales and pricing. Looking ahead to 2024, prospective buyers are in a favorable position. Despite prices trending upward, the simultaneous rise in supply, particularly in areas witnessing a development boom, instills the market with a renewed sense of flexibility and choice.”
– Pamela Liebman, Corcoran’s President & CEO
Palm Beach Highlights
Fourth Quarter 2023 saw double-digit annual growth in closed sales for both single-family homes and condo/co-op residences in the Town of Palm Beach as inventory significantly increased for both property types.
- After nine consecutive quarters with annual declines in sales, single-family closings surged 55% compared to 2022, while condo/co-op sales rose by 23%.
- Inventory reached a total of 322 available homes by the end of 2023.
While single-family average price dropped 50% YOY to $11.6M, it has now been above $10M for three consecutive years.
- The annual decline was the result of a doubling in the market share of closings under $10M compared to 2022.
Condo/co-op median price remained stable at $688K, a 2% increase compared to 2022.
- Notably, average price for condo/co-ops In Town jumped 38% YOY to $5.6M, driven by multiple high-priced sales at The Breakers this quarter.
Outside Palm Beach
Overall sales and pricing across Palm Beach’s neighboring markets saw a mixed end to 2023, with only Jupiter Island to Singer Island seeing strong annual increases for both product types.. However, prospective buyers are well positioned to start 2024 – while prices are on the rise, inventory also continues to expand (and is rapidly ascending in certain areas).
In the area from Jupiter Island to Singer Island, single-family home sales increased 35% annually and condo/co-op sales rose notably by 52% YOY.
- Condo/co-op pricing metrics hit new record-highs this quarter, with average price and median price each rising over 40% versus 2022, reaching $1.3M and $925K, respectively.
- Single-family median price increased by 23% YOY to $1.2M, driven by a doubling in sales priced over $3M compared to Q4 2022.
- However, average sale price dropped 21% annually to $2.5M due to fewer high-end transactions above $15M in the submarket.
- Inventory for both property types in the Jupiter Island to Singer Island area increased versus 2022.
In the area from West Palm Beach to Lake Worth displayed an annual decline in sales for single-family homes but saw an increase in condo/co-op closings. Closings for single family homes fell by 5% while condo/co-op sales jumped 32% YOY.
- Pricing trends varied between product types this quarter. The average price for single-family homes experienced a 5% YOY decline. This marks the third consecutive quarter with an annual drop in single-family average price.
- Condo/co-op average price has exceeded $1M for the third consecutive quarter. The annual increase this quarter was in large part due to waterfront sponsor closings at La Clara.
- Inventory for single-family homes increased by 20% YOY, providing more options for potential homebuyers as of the end of December. Condo/co-op inventory spiked 72% annually and rose by over 30% versus last quarter.
- This marks the sixth consecutive quarter of annual inventory growth for both product types.
In the area from Hypoluxo Island to Highland Beach, single family homes displayed an 18% YOY drop in closings while condo/co-ops experienced a 29% annual increase in closed sales. This quarter, single-family transactions fell to the lowest Fourth Quarter total since 2017.
- Single-family average price increased 35% YOY to $7.2M. Median price fell 7% versus a year ago thanks to a larger market share of transactions under $5M this quarter.
- Condo/co-op pricing metrics increased by double-digits YOY across the board.
- The annual gains in pricing were caused by a higher number of closings over $2M this quarter compared to last year. In addition, there were several luxury sales commanding prices over $3M.
- Inventory in the submarket increased by double-digits YOY for both product types with a total of 289 available listings at the end of 2023.
Delray Beach single-family sales fell 4% YOY (down 2 sales) but rose 4% versus Q3 2023. Condo/co-op closings increased 33% annually to 28 total sales in Fourth Quarter 2023.
- Single-family average and median price both increased YOY by double-digits due to a 15% increase in the market share of closed sales above $3M versus last year. Condo/co-op pricing metrics fell by double-digits annually.
- This was the second consecutive quarter condo/co-op pricing displayed an annual decline.
- Inventory skyrocketed 130% YOY for condos/coops in Fourth Quarter 2023 versus last year’s very low figure. Single-family inventory expanded by 29% annually to 160 listings at the end of December.