South Florida Real Estate Market Report: Q4 2018

In the Town of Palm Beach, fourth-quarter sales were up 5 percent over last year, with 109 closings.

In the Town of Palm Beach, total sales were up 5 percent compared to Fourth Quarter 2017. A 23-percent increase in condo and co-op sales outweighed the 48-percent decline in single-family home sales during Fourth Quarter 2018. Overall average sale price fell 45 percent given that condos/co-ops comprised a greater share of sales, plus there was only one sale above $10M this quarter. However, the median sale price rose 27 percent year-over-year as the market share of sales below $200K diminished during Fourth Quarter 2018. Days on market decreased for both product types year-over-year and last quarter, dropping 41 percent annually.

The year-over-year decline in price metrics for single-family homes were driven by a decline in the number of single-family sales above $5M during the Fourth Quarter 2018. As a result, average and median sale price figures fell by 20 percent and 9 percent, respectively. Days on market fell 51 percent, as most single-family homes sold within a year and no properties were on the market for over two years, while last year days on market was skewed up by two sales that sold after being listed for over three years.

Condo and co-op closed sales activity increased 23 percent across the Town of Palm Beach. Condo and co-op price metrics showed mixed trends versus Fourth Quarter 2017. Although average sale price declined 9 percent due to a shift in market share of sales below $1M, the median sale price rose 27 percent driven by a decline in sales below $100K. Homes were on the market for a shorter period of time during Fourth Quarter 2018, down 34 percent year-over-year to 116 days.

In the North End, single-family home sales experienced seven fewer sales compared to Fourth Quarter 2017. Average sale price decreased 25 percent mostly due to a $29.14M sale last year at 901 North Ocean Drive. When excluding that transaction, average sale price would have displayed a 5 percent increase versus Fourth Quarter 2017. Days on market decreased by 65 percent because no properties were on the market for over six months.

In Town, sales increased amongst both product types during Fourth Quarter 2018, with single-family, and condo/co-op sales increasing 25 percent and 28 percent, respectively. Average price of single-family home sales decreased 45 percent, a figure that was skewed by a $20.5M sale last year. Condo and co-op median price increased 12 percent year-over-year during Fourth Quarter 2018 while the average sale price declined 31 percent, driven by no sales above $6.5M compared to two last year, including a $13.25M penthouse sale at The Breakers. Days on market decreased for both single-family homes, condos/ co-ops versus Fourth Quarter 2017, down 36 percent and 45 percent, respectively. The significant drop is due to an increase in numbers of homes selling after being on the market for under three months.

The Estate Section experienced seven fewer single-family sales yearover-year during Fourth Quarter 2018. Due to just three sales during the Fourth Quarter 2018, price metrics were skewed significantly versus last year. Notably, both Fourth Quarter 2017 and 2018 experienced a sale above $20M.

Condo and co-op sales in The South End rose 21 percent versus last year. The average and median price figures increased for The South End as the number of sales between $500K and $1M more than tripled during Fourth Quarter 2018. Days on market declined year-over-year due to the majority of homes selling in fewer than three months.