South Palm Beach County Real Estate Market Update: Inventory Surges, Sales Slow Down
Newly released market statistics from Florida Realtors® are in, showing recent real estate market activity in our area. The reports compare year over year data for November. Read on to learn more about the real estate market in South Palm Beach County:
The South Palm Beach County real estate market in November 2024 shows notable shifts compared to the same period in 2023. Here are the key highlights:
Single-Family Homes
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Closed Sales: Declined by 10.3%, from 428 to 384 units.
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New Listings: Increased by 5.1%.
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Pending Sales: Rose sharply by 18.9%.
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Median Sale Price: Decreased by 2.0% to $600,000.
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Median Time to Contract: Increased significantly by 73.7% from 19 days to 33 days on market.
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Inventory (Active Listings): Grew by 13.8% to 2,612 units.
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Months Supply of Inventory: Expanded by 17.1%, reaching 4.8 months.
Townhouses/Condos
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Closed Sales: Dropped significantly by 23.2%, from 548 to 421 units.
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New Listings: Increased by 7.1% to 1.217 units.
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Pending Sales: Fell by 10.2%.
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Median Sale Price: Rose slightly by 0.3% to $299,000.
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Median Time to Contract: Lengthened significantly by 81.5% to 49 days on market.
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Inventory (Active Listings): Surged by 39.4% to 4, 4,702 units.
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Months Supply of Inventory: Soared by 64.6%, reaching 7.9 months. (this is the amount of time it would take to sell all units currently on the market if no new listings were added)
Key Takeaways
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Rising Inventory: Both segments saw substantial inventory growth, with townhouses/condos experiencing a sharper increase.
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Mixed Sales Activity: While pending sales for single-family homes increased significantly, townhouse/condo sales lagged behind.
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Price Trends: Single-family home prices saw a slight dip, while townhouse/condo prices edged up marginally. All in all, pricing has remained stable, however with increased inventory and decreased demand, we expect prices may decline.
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Slower Sales Timelines: The median time to contract increased significantly for both property types, reflecting a shift toward a buyer’s market.
These trends suggest a shift toward a buyer's market in South Palm Beach County, driven by increased inventory and extended sales timelines. Sellers may need to adjust strategies to stay competitive in this evolving landscape.
What is happening with the condo market specifically?
The South Florida condominium market is currently facing several challenges, particularly concerning older buildings:
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Rising Condo Association Fees and Special Assessments: Many older condos are facing significant structural issues, leading to costly repairs. In response to new state legislation mandating comprehensive structural inspections and maintenance reserves for older buildings (as a result of the horrific Surfside building collapse in 2021), many condo associations have increased HOA fees and implemented special assessments. This financial burden has led numerous owners to list their units for sale, contributing to a surge in condo listings.
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Increased Insurance Premiums: Property insurance costs have escalated sharply, with some condo associations reporting premium hikes of up to 800%. These rising costs, combined with new safety regulations, have led to higher monthly dues and special assessments, straining affordability for many condo owners.
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Regulatory Challenges: New laws requiring structural inspections and adequate reserves are increasing condo association costs. While these regulations enhance safety and property value, they also increase ownership costs.
These interconnected challenges have created a complex environment for condo owners, buyers, and investors in Boca Raton. In particular, it is important to verify that condo buildings have adequate reserves to cover any future repairs.
Want to know more?
I’m always here to help you navigate the local market. I can analyze the specific neighborhood and price range for you, whether you are interested in buying or in selling. Contact me today for a customized look at the latest conditions for the Boca Raton real estate market and beyond.
Posted by Gloria Singer on
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