The Palm Beach market remains hot, with the number of closed sales up 109% and closed sales volume hitting a record high—exceeding $1.2 billion.

PALM BEACH HIGHLIGHTS

The Palm Beach market boom continues in 2021, with the number of closed sales up 109%. Closed sales volume hit a record high, exceeding $1.2B.

Single-family home sales saw a 77% increase YOY, with condo/co-op sales up 121%, more than double compared to last year. This is the third consecutive quarter with an annual increase in sales.

  • What started in 2020—fueled by buyers seeking to expand their space, take advantage of work flexibility, and enjoy Florida’s lower cost of living and tax benefits —has resulted in single-family and condo/co-op sales that continue to improve annually.

Amid the robust demand, Palm Beach also saw incredible growth in price, with the average price for single-family homes spiking up 84% year-over year.

  • Driven by the high-end of the market that saw seven deals close for over $40M this quarter, the average price for single-family home skyrocketed to $13.8M, up 84% year-over year.
  • While strong demand is definitely pushing pricing, this quarter’s high average price and increase were exaggerated by seven closings over $40M, including a record-breaking sale over $120M. Excluding these sales, average sale price would have been essentially level with last year. Looking back at First Quarter 2020, there were zero sales over $40M.

OUTLYING MARKET HIGHLIGHTS

The Palm Beach market has buoyed the entire region with eager buyers now looking to neighboring areas, resulting in a record-setting start to the year.

The area from Hypoluxo Island to Highland Beach experienced a tremendous increase in sales—single-family home closings rose 152% YOY, and condo/co-op sales jumped 135%.

  • Single-family closed sales saw a 129% average price spike to $5.7M—the huge increase in average price was influenced by several closings over $20M, including an oceanfront residence trading for over $94M.
  • Average price of single-family homes increased as a result of triple the number of sales over $3M compared to a year ago, including the $94M sale plus four additional closings over $20M. Looking back at 1Q 2020, there was only one closing above $10M.
  • Closed sales volume skyrocketed 477% annually in the first quarter of the year, and days on market for single-family homes fell by 4% YOY by just under one week.

In the area from Jupiter Island to Singer Island, closed sales activity improved for all product types versus last year with single-family closed sales increasing 44% YOY and most notably, with condo/co-op closings up 71%.

    • The rise in closed sales activity for condo/co-op sales was a result of both increased demand and activity at luxury condominium properties offering direct water views, immediate occupancy, and desirable amenities.
    • There were over one hundred more transactions compared to 1Q 2020 and as a result of this considerable activity:
      • Single-family closed sales volume increased 147% year-over-year.
      • Days on market for single-family homes fell minimally by five days versus last year.
      • Condo/co-op marketing times shrunk by nearly four weeks compared to First Quarter 2020.

In the area from West Palm Beach to Lake Worth, closings greatly increased for condo/co-op residences. Prices rose across both product types by double digits with single-family homes experiencing a dramatic uptick in pricing.

  • Single-family home sales fell by just one closing annually. Average sale price and median price each soared versus last year and 4Q 2020.
  • Condo/co-op sales rose 82% YOY and 42% quarter-over-quarter.
  • Average sale price and median price rose by 11% and 13%, respectively.

In Delray Beach, first quarter sales activity surged for condo/co-op residences and increased for single-family homes.

  • Condo/co-op closings spiked 218% YOY and median price jumped 24% to $435K, while average sale price increased 4% to $430K. Driving price statistics higher were five times the number of transactions over $500K versus First Quarter 2020.
  • Single-family closings rose 25% compared to last year and saw average sale price increase by 26% to $1.8M.

Townhouse sales were up 68% YOY, but were essential level with 4Q 2020.

  • Average sale price and median price both rose by 24% year-over-year as the number of transactions over $1M and $2M greatly increased versus First Quarter 2020. Days on market rose by two days versus last year. Closed sales volume more than doubled, rising 109% year-over year to $149M. 

Read the full Coastal Palm Beaches & Barrier Islands report.

About Our Photo

Palm Beach, Florida, by Yosef Ariel, courtesy of Unsplash. Click photo for profile.
Palm Beach, Florida, by Yosef Ariel, courtesy of Unsplash. Click photo for profile.

©2021 Corcoran Group LLC. All rights reserved. Corcoran®, Live Who You Are® and the Corcoran Logo are service marks owned by Corcoran Group LLC. The Corcoran® System is comprised of company owned offices which are owned by NRT New York LLC, a subsidiary of Realogy Brokerage Group LLC, and franchised offices which are independently owned and operated. Corcoran Group LLC fully supports the principles of the Fair Housing Act and the Equal Opportunity Act.