Palm Beach County Market Update

October 2024

The real estate market in Palm Beach County continues to navigate a dynamic landscape as we move into the last quarter of 2024. October's data reveals notable shifts in both the single-family home and townhouse/condo markets. While some metrics highlight a cooling in buyer activity, others indicate a growing inventory and stabilization in supply. Here's a detailed breakdown of the market trends:

Palm Beach County Single-Family Home

Closed Sales: 1,052, a 3.1% decrease from October 2023. This slight dip reflects a marginal slowdown in buyer activity, possibly due to higher interest rates or seasonal market adjustments.
Median Sales Price: $621,500, down 0.2% year-over-year. The near-flat change in prices signals that single-family homes are retaining much of their value despite market fluctuations.
Active Inventory: 5,568 homes, a 32% increase from last year. The significant rise in inventory gives buyers more options, creating a less competitive environment.
Months Supply of Inventory: 5.0 months, up from 3.6 months a year ago. A balanced market typically has 5-6 months of inventory, so this increase suggests the market is shifting toward equilibrium.
New Listings: 1,493, down 15% year-over-year. The decline in new listings reflects seller hesitation, possibly due to the challenges of finding their next property or adjusting to market conditions.
New Pending Sales: 946, down 8.5% from last year. Fewer pending sales align with reduced buyer urgency, likely influenced by market uncertainty or affordability constraints.

The single-family home market in Palm Beach County is experiencing a stabilization period. Increased inventory and months of supply are balancing market dynamics, while slight drops in sales and price changes hint at cautious buyer behavior.

Palm Beach County – Townhouses and Condos

Closed Sales: 742, a 19% decrease year-over-year. The sharper decline in sales for townhouses and condos compared to single-family homes may reflect less demand in this segment, often preferred by first-time buyers or those downsizing.
Median Sales Price: $305,000, down 3.2% from last year. This modest price drop suggests that the market is responding to reduced demand, allowing buyers more leverage.
Active Inventory: 6,848 units, up 63% year-over-year. The considerable increase in inventory gives townhouse/condo buyers greater selection and negotiating power.
Months Supply of Inventory: 8.0 months, up from 4.2 months a year ago. The townhouse/condo market has entered a buyer's market territory, with supply exceeding the balanced range.
New Listings: 1,520, down 5.7% year-over-year. Fewer new listings may be a response to higher inventory levels, as sellers face more competition.
New Pending Sales: 690, a 22% decline year-over-year. The significant drop in new pending sales highlights reduced buyer activity and longer decision-making periods in this segment.

The townhouse/condo market in Palm Beach County is clearly in a transitional phase. The surge in active inventory and extended months of supply signal a buyer-friendly environment, while declines in sales and pending activity suggest a need for greater market adjustments.

The October 2024 market data for Palm Beach County highlights shifting trends, with increasing inventory and lengthened supply across both market segments. While sales have cooled, these changes may offer opportunities for buyers seeking better options and negotiating power. Sellers, however, should adjust their strategies to remain competitive in this evolving market.