“The close of 2022 once again proved that Palm Beach is still one of the most popular markets across South Florida. Prices continue to rise for single-family and condo/co-ops, meaning buyers are still pursuing the Palm Beach lifestyle, even as mortgage rates rise and the economy shifts. In the recent past, the market was plagued by low inventory, which drove sales down. However, with a significant boost in active listings at the end of the quarter, opportunities abound for those desiring low taxes and a healthy dose of sunshine.”
– John Hackett, Senior Managing Director, South Florida
Palm Beach Highlights
In 4Q 2022, Palm Beach once again proved to be one of the most coveted real estate markets in all of South Florida as average prices for single-family homes and condominiums increased by double-digits.
- With only one sale under $6M this quarter, single-family average and median price — both up over 60% — reached new record highs.
- Average price for condos/co-ops increased 15% year-over-year to $1.7M, as the market share of sales under $1M declined from last year and also due to the increase in $2M+ luxury sales.
- Demand for ultra-luxury properties kept prices high. For the eighth consecutive quarter, there was at least one single-family closing over $30M.
Amid challenging market conditions such as high inflation, rising mortgage rates, and economic uncertainty, the number of sales in Palm Beach returned to pre-pandemic levels.
- Single-family home sales hit their lowest quarterly total since 2016, and while sales volume declined 51%, at $257M it still surpasses the total from 4Q 2019.
- Condo/co-op sales slid 56% YOY to 51, and sales volume followed with a decline of 50% to $86M.
- The average days on market for single-family homes fell just under two weeks to 77 days — an annual decline of 13%, making 4Q 2022 the eighth consecutive quarter with a double-digit drop.
- Both product types saw increased inventory levels at the end of the year, presenting new options for buyers in pursuit of Palm Beach due to its low taxes, flexibility at work, and lifestyle.
Outside Palm Beach
Prices continue to rise throughout the majority of the Palm Beach-adjacent markets as the demand has not abated. While sales activity cooled in 4Q 2022, inventory levels across both product types saw significant growth, giving prospective buyers more opportunities to find a home in the new year.
In the area from Jupiter Island to Singer Island, single-family home sales fell 54% YOY to 31, while condo/co-op closings dropped 42% YOY.
- 4Q 2022 marked the fifth consecutive quarter of an annual decline in sales for condo/co-ops; however, the 110 closed sales was essentially level with last quarter, differing by a single sale.
- As there was a nearly a 10% annual decline in the market share of sales under $500K, condo/co-ops saw both average and median price increase by double-digits.
In the area from West Palm Beach to Lake Worth, pricing metrics for both product types rose as demand continues to drive prices up. Average sales price for condos/co-ops increased 55% to $865K.
- Even with sales volume declining 29% YOY, 4Q 2022 was the tenth consecutive quarter sales volume for single-family homes exceeded $100M.
- Closings declined across both product types, with single-family homes hitting its lowest quarterly total since 2018.
- Inventory for single-family homes increased 82% versus last year with 276 active listings available for potential buyers at the end of the year.
The area from Hypoluxo Island to Highland Beach saw an annual decline in closings for both product types to numbers similar to those seen in 4Q 2019.
- Due to a greater share of single-family sales over $3M and zero closings under $1M, median price jumped 72% YOY to a record-high of $5.3M.
- Condo/co-op price metrics increased for the seventh consecutive quarter due to rising prices and consistent demand.
- Inventory for both product types increased this quarter, with single-family homes experiencing a 111% annual rise in inventory to 76 listings.
- Condo/co-ops saw 128 active listings at the end of December, a 58% YOY increase.