The Florida home sales, specifically in the Palm Beach area, saw some growth but also some challenges as inventory shortages and other issues persist in the market, according to a new report from Brown Harris Stevens.
Brown Harris Stevens’ Q1 2023 Residential Market Report for Palm Beach reviewed sales activity and data for single-family and condo/co-op/townhouse in both Palm Beach and select West Palm Beach areas. The report found that while demand was high, inventory shortages caused lower sales volumes. However, the report also found growth in the high-end market.
Highlights in Palm Beach:
- The single-family market remained robust in Q1, although a lack of inventory led to substantially lower sales volume. 19 sales were reported during the quarter, a 41% decrease as compared to 32 sales during the same period last year.
- Despite a decrease in sales volume, the average single-family sales price increased 33% to $21,559,000, and the average price per square foot rose 8% to $3,497.
- Several high-end single-family sales contributed to the increase in the average sale price, including 1495 N. Ocean Blvd. for $155M; the sale of 550 S. Ocean Blvd. for just under $45M; and the sale of 930 S. Ocean Blvd for just under $37M.
- The average marketing time for single-family homes on the market during Q1 2023 increased to 151 days. Meanwhile, average days on market for condo/co-op/townhomes increased to 90 days.
- While demand remained strong, condo/co-op/townhouse sales activity was negatively impacted by lack of inventory.
- There were only 99 closed condo/co-op/townhouse sales which reflects an 89% decrease compared to Q1 2022 which recorded 187 sales.
- Average condo/co-op sales price increased by 33% to $2,125,000, and the price per square foot increased 26% to $1,089.
Highlights in select West Palm Beach areas:
- Single-family sales activity in this sector was impacted by low inventory and also by the rise in mortgage interest rates—both factors giving prospective buyers reason to pause.
- The select market areas in West Palm Beach recorded 127 closed single-family sales during the quarter, a decrease of 34% compared to the prior year.
- The average single-family sale price decreased slightly by 4% to $958,000, and the price per square foot remained essentially flat at $491.
- Marketing time for all single-family homes sold this period decreased to 69 days. Meanwhile, marketing time for condo/co-op/townhomes increased to 73 days.
- There were 152 closed condo/co-op sales, a decrease of 29% compared to Q1 of the prior year. Higher mortgage rates and fewer listings contributed to the decrease in closed sales.
- Despite lower sales activity, the average condo/co-op sales price increased by 16% to $842,000 and the average price per square foot increased 16% to $490.
- Significant condo/co-op sales this quarter included 1100 S. Flagler Dr., Unit 1901 which sold for $21M and Unit 1702 which sold for just over $11M.
“While the number of single-family home sales has substantially decreased compared with the same period last year, the number of high-end sales reflects the belief in the strength in our market. Some of the significant sales this quarter were the $155 million sale of the former Rush Limbaugh estate and the $45 million sale of a house on South Ocean Boulevard (550 S. Ocean Blvd.) Those and others contributed to a 33% increase in the average sale price. In the lower price market, rising interest rates and low inventory have been an issue for some buyers. As a result, we are seeing a slight shift in sellers’ price expectations and some price reductions,” said Ava Van de Water, executive managing director for Brown Harris Stevens in Palm Beach. “However, the market remains strong as evidenced by our recent Brown Harris Stevens’ sales, including some off-market sales including an oceanfront cottage for more than $20 million, many full-price sales and several listings that went under contract just days after hitting the market.”
For the full report, click here.