Q1 2024 Palm Beach County Real Estate Market Update

 

The Palm Beach real estate market was sizzling hot as spring arrived in 2024. Despite an overall slump in home sales across the county, the ultra-luxury segment was shining bright.

 

In March, the number of homes selling for $1 million or more rose by a robust 7.8% compared to the same month the previous year. It marked the second straight month of year-over-year increases for this premium pricing tier.

 

"Palm Beach real estate remains a high-demand, low-supply market with home prices appreciating above the national figure," explained Courtney Smitheman, president of the Miami Association of REALTORS®. "The wealthy are continuing to scoop up our region's limited supply of luxury properties."

 

But, behind the alluring overall $1 million-plus statistic was a tale of two markets.

 

In total, the number of Palm Beach County homes sold fell by 20.6% year-over-year in March from 2,800 to 2,223. However, the official statistics don't account for the region's booming new construction market, where developers have been working hard to keep up with persistent demand.

 

The number of single-family homes sold in Palm Beach County declined by 16.3% year-over-year in March. However, it was the condo segment that really took a hit, with a 25.3% drop in sales compared to March 2023.

 

"The condo market is being hampered by a lack of desirable inventory at certain price points, coupled with elevated mortgage rates making financing more expensive," Smitheman said. "But for those able to pay all cash, the luxury single-family and condo markets remain highly coveted."

 

South Florida's red-hot real estate market cooled ever so slightly in early 2024 as rising mortgage rates took a toll on housing momentum. Higher mortgage rates that rose to the high 6's caused a loss in momentum in sales in the last month of the quarter. But demand from wealthy buyers remained fervent, fueling continued price appreciation. For those able to pay all cash, the luxury single-family and condo markets remain highly coveted.

 

One factor working in buyers' favor is that new listings in Palm Beach County are finally nearing pre-pandemic levels after abnormally low supply for the past two years. This comeback in new properties has boosted total inventory and given house hunters more options.

 

Inventory of single-family homes increased 30.7% year-over-year in March 2024 from 3,876 active listings last year to 5,066 last month. Condominium inventory increased 67.4% year-over-year from 3,880 to 6,496 listings during the same period in 2023.

 

Months’ supply of inventory for single-family homes is 4.4 months, which indicates a seller’s market. Inventory for existing condominiums is 6.8 months, which indicates a balanced market. A balanced market between buyers and sellers offers between six- and nine-months supply.

 

Palm Beach County's new listings increased 6.4% year-over-year in March. But inventory remains 28.6% below historical averages.

 

Migration into Southeast Florida remains strong. Despite rising mortgage rates and limited supply, the unrelenting influx of new residents kept home prices racing skyward.

 

During 2023, over 153,000 new driver licenses were issued in the region's four counties, up 8.3% from 2022 levels. New York, New Jersey, and California continue to be our top feeder markets.

 

Palm Beach single-family median prices jumped 11.3% year-over-year to $640,000 in March. Condo prices rose 5.8% to $330,000.

 

Real estate experts cite South Florida's incredible wealth migration as a prime factor. The share of million-dollar home sales to total transactions has steadily climbed - up to 17% for single-family and 9% for condos in 2023, more than double the percentages from 2019.

 

This tide of new arrivals generated an estimated $271 million economic impact from Palm Beach County's March home sales alone – that’s $122,000 per home! Even with sales down 20.6% year-over-year, the region's total dollar volume still hit $1.9 billion for the month.

 

Cash buyers represented 54.3% of transactions, nearly double the national rate as foreign and move-up buyers flex their purchasing power.

 

Notably, an exceptional 54.3% of March's closings were all-cash transactions, nearly double the national rate of 28%. A striking 65.2% of condos were purchased without financing. Even in the single-family sector, 45.5% commanded outright cash acquisition.

 

Palm Beach's luxury landscape continues to command premium valuations, with recent data underscoring the region's unwavering appeal to discerning buyers. In March 2024, single-family homes commanded a median of 94.6% of their original list price, while existing condominiums garnered an impressive 93.6%.

 

Properties moved briskly, with single-family contracts inked within a median of 35 days and closings occurring at 76 days – even quicker than 2023's pace. The condominium market exhibited similar vitality, with a median of 41 days to contract and 77 days on the market.

 

While some cooling may be inevitable with rates expected to remain elevated, industry insiders predict the area's tantalizing mix of warm weather, business-friendly climate, and international appeal will keep the real estate market sizzling well into the future.

 

If you’d like detailed information on a particular Palm Beach County town or neighborhood, please reach out for a personalized, in-depth market report.