Palm Beach County Market Report – July 2024

For this month’s market report, I felt I could write it even before analyzing the raw data or watching any economists’ videos. You can sense the current market conditions.

It’s a fact that homes at any price point are taking significantly longer to sell. Why? There’s a lot of competition in the market. Inventory, representing active listings, is up 48% in Palm Beach County and 55% in Broward County. This trend reflects the broader situation across Florida, where pending sales are down, and inventory is up substantially.

In Florida, we base much of our analysis on year-over-year results, given that we are in a seasonal marketplace. We also review month-over-month data to better identify trends. In this month’s Palm Beach Market report, we observe that while active inventory has increased substantially, the number of new listings has risen compared to the same time last year but at the slowest pace month-over-month in 2024.

Does the slowing of new listings and sales mean that our market has shifted? Not necessarily. We are approaching the tail end of our “summer” market, which tends to be a slower period in South Florida. Surprisingly, our average and median sales prices are still up from the same time last year.

So what does it mean when sales are down, pendings are down, but prices remain steady or even slightly higher than last year? It indicates that we have many overpriced listings. We see reduction after reduction, leading people to mistakenly assume that prices are dropping. However, I’ve shown that prices are not dropping; rather, the reductions result from sellers and agents not fully recognizing the current market conditions. We all want to sell homes at the highest and best price, but in a high-inventory market, every aspect of your sales strategy matters.

Cash sales are down to less than 50% of total sales. Interest rates, although decreasing, are still higher than they were a few years ago, and competition is fierce. Your sales strategy, from curb appeal to pricing, is crucial. How your home is marketed and presented (including agents showing up to “sell” your home to prospective buyers and agents) is more important than ever. Sellers, choose your PARTNER carefully, as this can make all the difference in getting your home sold.

To summarize, pending and closed sales are down across all price points. Cash sales are down by almost 11%, so sellers should be prepared for appraisals. Prices remain strong in Palm Beach. Inventory under the $600K price point is still a seller’s market, although it’s approaching a balanced market range. Between $600K and $999K, we are in a balanced market, and over $1,000,000, our luxury market, while balanced, is nearing a buyer’s market.

In conclusion, it’s evident that the real estate market in South Florida is experiencing unique challenges and opportunities. With inventory levels rising and sales slowing, the role of a skilled realtor has never been more critical. The right partner will help you navigate pricing strategies, enhance your home’s appeal, and effectively market your property. In a competitive market, every detail counts, from initial listing to final sale.

Choosing an experienced and knowledgeable realtor can make all the difference in achieving your real estate goals. Whether you’re buying or selling, partnering with a professional who understands the nuances of the market ensures you make informed decisions and maximize your investment.

Amy