South Florida Real Estate Market Report: Q3 2019

In the Town of Palm Beach, total sales were down 20% compared to Third Quarter 2018. The decrease in condo and co-op sales was more pronounced, at 22%, than the 11% decrease in single family sales activity during Third Quarter 2019.

Overall average sale price rose 99% and median price increased 18% which was driven by the sale of 60 Blossom Way which closed for over $99M. Excluding this sale, average sale price would have increased by 55% annually, still a very notable increase. Days on market increased for both product types year over-year, rising 26% annually overall.

In addition, the sale of 1960 South Ocean Boulevard for over $40M skewed pricing higher during Third Quarter 2019. Extreme prices have less of an impact on the median sale figure yet it still rose 48% compared to Third Quarter 2018. Days on market increased 43%, as over a third of single-family homes sold after being on the market for over a year and two properties were on the market for over two years.

Palm Beach condo/co-op closed sales activity decreased, falling 22% versus last year and 46% compared to Second Quarter 2019. Condo/co-op price metrics rose versus Third Quarter 2018. Average and median sale price each rose by over 20% annually as there was a smaller share of condo sales below $1M and a simultaneous increase in share of sales above $3M compared to Third Quarter 2018. Apartments were on the market for a longer period of time during Third Quarter 2019, up 12% year-over-year to 109 days.

In the North End, single-family home sales experienced a 17% decline compared to last year. Average sale price showed a significant increase of 72% mostly due to an oceanfront sale at 1071 North Ocean Boulevard closing for over $40M during Third Quarter 2019. Days on market increased by 122% which was influenced by a low Third Quarter 2018 figure and the majority of sales staying on the market for over six months before finding a buyer.

In Town, sales showed varied activity by product type during Third Quarter 2019, with single-family sales remaining level compared to last year and condo/co-op sales decreasing by 15%. Average price of single-family home sales increased 31% while condo/co-op average price also increased, up 49% year-over-year. The increase in condo/coop average price was driven by a shift in market share of sales towards $1M compared to last year. Days on market increased 63% for single-family homes and 18% for condos/co-ops versus Third Quarter 2018.

The Estate Section experienced one fewer single-family sale compared to Third Quarter 2018. There were five sales over $15M during Third Quarter 2019 compared to two in Third Quarter 2018, including the sales of 60 Blossom Way and 1960 South Ocean Boulevard. As a result, price metrics were skewed versus last year: average price increased 169% year-over-year while median price rose 115%.

Condo/co-op sales in The South End fell 26% versus last year. Average price increased 3% year-over-year due to a high floor condo sale priced over $3M during Third Quarter 2019. Median price rose 19% for The South End as the share of sales under $500K decreased this quarter compared to last year. The majority of homes sold after being on the market for about 6 months, driving days on market up 27% year-over year.

Read the full Palm Beach report.


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