Palm Beach real estate market shifts as homes linger on the market

Palm Beach real estate market shifts as homes linger on the market

2022-12-02T12:17:53-05:00December 2nd, 2022|Economy, Palm Beach, Real Estate|

Writer: Gabriela Enamorado

2 min read December  2022 —Palm Beach County, an area that has emerged as the “Wall Street of the South” with an influx of executives moving their families and businesses to the area, has been experiencing a slight drop-off in the housing market as the number of closed sales slightly decline. Despite the slow down in transactions, inventory and median home prices continue to riseopens PDF file , according to a recent market report by Florida Realtors.

Palm Beach has been one of the most sought-after areas to purchase real estate in the country as professionals and their families move from the Northeast and West Coast to a favorable tax environment and high quality of life. But there’s been a 28.7% decrease in closed sales for single-family homes in October year-over-year. In October 2022, the number of closed sales for single-family homes were 1,049, compared with 1,471 in October 2021.

However, for the fifth straight month in a row, Palm Beach single-family home inventory has increased and the median home price has risen 14% to $570,000, compared to 2021 when the median home price was $500,000, according to a report by the Martin Group Palm Beach. The price is still down from the record median home price in June 2021, which was $620,000. 

For condos and townhomes in the Palm Beach area, there is a similar trend in fewer transactions. In October 2022, there were 878 closed sales on condos and townhomes, a decreaseopens PDF file of 34.4% from 1,338 in 2021, according to the Florida Realtors. 

This slight cooldown comes after an intense period of home bidding that drove up home values, while the housing market appears to be trending in a more favorable direction for homebuyers.

According to the Broward, Palm Beaches and St. Lucie Realtors Group November 2022 report, the median time to close a sale for single-family homes has increased to 28 days, up from 14 days back in October 2021. For condos and townhomes, the median time increased to 27 days, compared to 15 days in 2021, indicating that homebuyers are taking their time to search the available and increasing home inventory in Palm Beach County. 

Overall, the adjustment in the real estate market reflects a national trend as rising interest rates and inflationary pressures have impacted potential buyers, while Palm Beach and the state of Florida remains a top destination for many.

The South Florida market in general will be more insulated than most from seeing a softening marketplace because there are still so many people from other states who want to move here,” Dionna Hall, CEO of Broward, Palm Beaches & St. Lucie Realtors® told Invest: earlier this year. “There is no business tax and there are other business-friendly policies that have been put in place on the state level.” 

Palm Beach County’s housing inventory year-over-year is currently at 3.2 months, indicating a seller’s market compared to the benchmark of 5.5 months supply of inventory for a balanced market. Hall noted that the market has continued to be dictated by the region’s population growth. “There’s still an influx of people coming from the Northeast and Midwest, and we’re able to provide what they’re looking for here in Palm Beach County,” said Hall. “Real estate is going to have a consistent flow that’s going to keep us at the forefront.” 

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