Douglas Elliman’s Q3 Palm Beach Real Estate Report

Douglas Elliman’s Q3-2024 Palm Beach Real Estate Report: Key Market Insights for Buyers and Sellers

The Q3-2024 Douglas Elliman Palm Beach Real Estate Report, developed in partnership with Miller Samuel, reveals the latest trends across Palm Beach’s condo, single-family, and luxury sectors. This quarter’s report reflects market changes that are essential for potential buyers, sellers, and investors to understand. At the Scott Gordon Group, we’re here to guide you through the data and help you leverage these insights for your real estate decisions.

Here’s a breakdown of the most notable trends and what they mean for you.

Palm Beach Condo Market: Price Gains Amid Growing Inventory

The condo market in Palm Beach showcased both rising prices and expanding inventory:

1. Median Sales Price Increase: Median condo prices rose by 35% year-over-year to reach $1.35 million, marking a positive trend for property values in this sector.

2. Sales and Inventory Shifts: Closed condo sales declined by 51.3% from Q2, while inventory increased by 45.5% year-over-year, bringing the condo supply to 12.5 months.

3. Longer Days on Market and Listing Discounts: Properties averaged 115 days on the market this quarter, up 22.3% from the previous period. Sellers offered an average 6.3% discount from the last list price, suggesting room for negotiation.

For condo buyers, this environment presents a unique opportunity, with ample options and potential for price negotiation. Sellers, meanwhile, should consider pricing strategically given the longer selling times.

Single-Family Homes: Lower Prices, Higher Demand

In the single-family sector, Q3-2024 brought price adjustments but steady demand:

1. Decline in Average Sales Price: Average sales prices dropped to $12.7 million, a 48.2% decrease, largely due to a decrease in the average home size.

2. Slight Increase in Sales Volume: Sales volume grew by 18.2% compared to Q3-2023, even as the median price fell by 14.9% to $9.28 million.

3. Extended Days on Market: Homes took an average of 191 days to sell, representing a 92.9% increase from the previous year.

This trend indicates that buyers may benefit from more favorable prices in the single-family market, while sellers should focus on presenting properties in the best possible light to capture interest in a longer sales cycle.

Luxury Market: Inventory Expansion and Significant Price Adjustments

Representing the top 10% of the market, Palm Beach’s luxury sector saw notable adjustments:

1. Median Price Decrease: Luxury home prices dropped by 64% year-over-year, bringing the median down to $14 million. Average sales prices also decreased to $20.4 million, reflecting a recalibration from previous high levels.

2. High Inventory and Lengthy Selling Periods: The luxury sector now has 54 active listings, nearly tripling last year’s inventory. With properties taking an average of 271 days on market, sellers may need to adjust pricing expectations to align with current conditions.

For buyers, the current luxury market offers attractive options at reduced prices, while sellers may benefit from strategic pricing to capture motivated buyers in a high-inventory market.

North and South End Insights: Regional Price and Sales Trends

1. North End Stability: The North End’s median price rose slightly to $6.35 million, with sales volume holding steady compared to last year, indicating steady interest.

2. South End Growth: The South End saw a significant increase in median price, up by 124.1% year-over-year to $1.21 million. Though the sales volume slowed from Q2, demand remains strong in this accessible luxury segment.

Douglas Elliman’s Q3-2024 Palm Beach Real Estate Report provides essential insights into the changing dynamics of the Palm Beach market. At the Scott Gordon Group, we interpret these trends to help our clients make informed decisions about buying, selling, and investing in Palm Beach.

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