South Florida Real Estate Market Report: Q4 2019

In the Town of Palm Beach, sales fell 21% compared to Fourth Quarter 2018. A 28% decrease in condos/co-op sales fueled the decline; single-family home sales actually increased 29% year over-year during Fourth Quarter 2019.

Average sale price across all product types rose 116% and median price increased 4%, driven by the sale of 1415 South Ocean Boulevard that closed for over $100M. In addition, the sale of 1610 North Ocean Boulevard for over $25M skewed pricing higher during Fourth Quarter 2019. Excluding the sale of 1415 South Ocean Boulevard, average sale price would have increased by 36% annually, still a very significant increase. Days on market increased by 5% for single-family sales yet declined by 16% for condos/co-ops year-over-year, bringing down the overall figure to 103 days, a 12% overall annual decline.

Extreme prices have less of an impact on the median sale figure yet it still rose 4% compared to Fourth Quarter 2018 due to the year over-year increase in single family home sales which are two-and-a half times more expensive than the overall average.

Palm Beach condo/co-op closed sales activity decreased, falling 28% versus last year and 18% versus last quarter. Condo/co-op price metrics were mixed versus Fourth Quarter 2018. Average price rose 26% annually but median price fell 9% compared to last year. Average price rose to due to a greater share of condo sales over $3M compared to Fourth Quarter 2018. In addition, there were two sales over $5M in Fourth Quarter 2019 compared to none last year. Although median price fell 9% annually, the nominal drop year-over-year was less than $50,000. Apartments were on the market for a shorter period of time during Fourth Quarter 2019, down 16% year-over-year to 98 days.

In the North End, single-family home sales activity improved 33% compared to last year, up by two sales. Average sale price displayed a significant increase of 80%, mostly due to an oceanfront sale at 1610 North Ocean Boulevard closing for over $25M. Days on market increased by 164%, influenced by a low Fourth Quarter 2018 figure. The majority of units that closed in Fourth Quarter 2019 stayed on the market for over six months before finding a buyer.

In Town, sales activity varied by product type during Fourth Quarter 2019, with single-family closings rising 60% compared to last year but condo/co-op sales decreasing by 9% during the same period. The average price of single-family home sales fell 22% and condo/co-op average price also decreased, down 3% year-over-year. The decrease in single-family average price was driven by fewer sales over $3M compared to last year. Days on market expanded 4% for single-family homes and 25% for condos/co-ops versus Fourth Quarter 2018.

The Estate Section experienced one fewer single-family sale compared to Fourth Quarter 2018. During Fourth Quarter 2019, 1415 South Ocean Boulevard closed for over $100M. As a result, price metrics were significantly skewed versus last year: average price ballooned 365% year-over year while median price jumped by 548%.

Condo/co-op sales in The South End fell 38% versus last year. Average price increased 49% year-over-year due to a high floor penthouse sales closing for more than $3M in Fourth Quarter 2019. Median price fell 5% for The South End as the share of sales under $500K increased compared to last year. Days on market declined by a minimal 1% annually.

North of Palm Beach, on the barrier islands from Jupiter to Singer Island, there was an increase in single-family home sales but a decline in condos/co-ops closings. Price statistics diverged by product type. Single-family average price and median price each increased by 33%, driven by a larger share of sales above $3M and the decline in market share of sales under $500K during Fourth Quarter 2019. For condos/coops, average price remained level year-over-year and median sale price rose 18% annually, caused by the decline in the market of sales below $1M compared to last year. Days on market rose a minimal 2% for single-family homes while condos/co-ops increased 6% compared to last year.

The area south of Palm Beach, from Hypoluxo to Highland, had diminished sales activity for both single-family homes and condos/co-ops. Pricing metrics varied by product type. Single family homes experienced a 74% increase in average price year over-year and median price also increased by a significant 92%; a rise in sales over $5M including one sale over $9M versus none last year drove the overall gains. Pricing metrics for condos/ co-ops were mixed with average price up 20% and median price down 11%. Days on market for single family homes and condos/co-ops increased by double digits, rising 19% and 16%, respectively. Days on market increases were due to the majority of homes staying on the market for over six months compared to less than six months last year before finding a buyer.

Read the full Palm Beach report.