South Florida Real Estate Market Quarterly Report – Q1 2017

Town of Palm Beach condo/co-op closings rose 20% year-over-year, as well as more than doubled over the Fourth Quarter 2016. Average condo/co-op price rose 42%, largely due to the sale of a condo at 2 North Breakers Row for $15.5 million, the second greatest sale ever for a condo in the county. Median price however, did fall 11%, and days on market rose 35% due to some sales of stagnant inventory.

Condo/co-op sales In Town performed the best, with 70% more sales than last year, and triple the sales of last quarter. Average price rose 62% over the last year. On average, units spent 18 more days on market than last year, translating into a 13% increase in days on market. Condo/co-ops in South End experienced nearly the same contract activity, with a 3% increase over last year. Average price declined only 2%, while median price decreased 19%, in part due to a 50% increase in sales under $200,000.

Sales in the Town of Palm Beach for single-family homes saw a slight drop versus last year. A shift in market share of sales towards “In Town” caused average price to fall 14% year-over-year. But median price stayed relatively steady. Among condos and co-ops – against the trend seen over the last two-quarters – sales rose year-over-year, and average price spiked 42%. Median condo/co-op price declined, however, indicating that the big average price increase was due to the skewing effect of a few expensive condo sales.

Single-family home sales saw a 5% drop year-over-year, though that’s just one home sale less than the year prior. Sales In Town almost doubled compared to last year, with all seven sales this quarter surpassing a million dollars, compared to just three out of four sales over that price last year. Average price decreased this year because in First Quarter 2016 figures were impacted by the sale of a home in excess of $12 million on Barton Avenue.

North End saw activity comparable to last year, with three less sales marking a 19% decline in closing activity. However, average and median price both rose over last year, with a $49 million sale at 101 Indian Road, the largest in Palm Beach County in over a year, occurring in the North End. There was a dramatic 266% increase in the average days on market, as over half of sales were listed over 200 days, compared to none being listed for that duration last year.

Jupiter Island to Singer Island

On the barrier islands north of Palm Beach, from Jupiter to Singer Island, strong sales were seen across the market. Average and median price for single-family homes increased by double digits, as contract activity rose 41%. The number of sales over $1 million nearly doubled over the last year. Condo/co-op sales saw a 13% rise in sales over the last year, with most sales occurring between $300K and $1M, resulting in a lower average sale price, but higher median sale price. Both condo/co-ops and single family homes in the area saw a decrease in days on market.

Hypoluxo Island to Highland Beach

South of Palm Beach, from Hypoluxo down to Highland, sales were down significantly. Single-family homes saw a decline in sales activity of 21% versus last year, but more than doubled versus the prior quarter. Four sales along Ocean Boulevard of over $15 million helped elevate average price 33%, though median price did drop 11%. On average, days on market was 26% lower than the year prior. Condo/co-ops saw a 22% decline in contract activity versus last year. Average price stayed virtually the same, though a large number of sales below $200K did push median price down 11%.

Townhouses

Townhouses in the three areas mentioned saw a large increase in sales over the last year, as sales jumped 55%. Average and median sale price both saw double-digit gains, as the number of sales over $1 million doubled this quarter. Sales were particularly strong in the area of Hypoluxo to Highland, where the majority of sales took place. Days on market did tick up slightly, as the market absorbed a lot of inventory over $1 million.

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