June 2024 Market Report – May 2024 Data 

Understanding the Real Estate Market in Palm Beach County: A Fresh Perspective

There’s a lot of misunderstanding about the current state of the Palm Beach County real estate market, and I’m excited to clarify what’s really happening.

Many people see price reductions, expired listings, and closed sales below the original list price and assume that the market has cooled, and prices are dropping. However, the reality is quite the opposite. Compared to the same time last year, our total dollar volume is up, and both median and average price points have increased. Prices haven’t decreased; instead, the number of options available to buyers has grown, leading to an increase in inventory while demand remains high.

Implications for Buyers and Sellers:

The current market means that both buyers and sellers need to be strategic. Curb appeal, staging, showing expertise, and accurate pricing are crucial. With more options available, buyers can afford to be more selective. Often, rather than offering a lower price, buyers are waiting for sellers to adjust their list prices to more realistic levels.

As listing agents, we need to be innovative and strategic to make our listings stand out. This may involve spending money to reach the right audience or revisiting your audience after a price adjustment or marketing change. For example, in two recent cases of our own listings, beautiful vacant homes were virtually staged, but buyers struggled to envision the use of space. Physical staging was then done with the help of designers, and both homes sold within 30 days of staging.

We are now in a longer selling cycle market. Partnering with the right agent is crucial, as it takes time and strategy to sell your home for the highest and best price. Unlike during the pandemic, longer days on market aren’t a deal-breaker. Most homes are taking longer to sell for the right price. Inventory is up across Florida, though the Palm Beach luxury market has seen a much-needed dip.

Market Segmentation:

  • Under $900,000: We remain in a seller’s market, though properties in the $600,000 – $900,000 range are nearing a balanced market where the seller’s advantage diminishes.
  • Over $1,000,000: With 6.6 months of inventory, this segment is balanced, giving neither buyers nor sellers a distinct advantage.

Advice for Sellers:

When interviewing agents to be your partner, focus on their business practices, market analysis, and how they handle feedback and showings. It’s more important than ever to have a variety of tools at your disposal. Selecting an agent who suggests the highest list price doesn’t guarantee success, especially if the initial price is unrealistic. The value of a partnership lies in mutual respect, understanding of the market, and the agent’s ability to attract non-traditional buyers, market effectively, and negotiate deals to closing.

We’ve waited for a balanced market where we can truly showcase our skills, and that market is here now.