Coastal Palm Beaches & Barrier Islands Market Report: 1Q 2021

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.