According to the Palm Beach Daily News, Palm Beach’s real estate market saw an active 2024, particularly for single-family homes, while condo sales faced headwinds. Year-end reports reveal a steady demand for luxury properties, especially at the high end, though multifamily sales declined significantly compared to the previous year.
Luxury Homes Drive Palm Beach Market
Single-family home sales remained robust, totaling $1.876 billion in 2024—just a slight 1% dip from the $1.9 billion recorded in 2023. Trophy properties and newly renovated residences commanded strong prices, particularly those with prime waterfront locations. Notably, the town saw 10 ultra-luxury sales exceeding $49 million, including record-breaking deals such as the $150 million transaction on Tarpon Island and a $148 million sale on North County Road.
The number of available single-family homes increased in 2024, with inventory reaching new highs between 80 and 100 active listings. This expansion gave buyers more options, leading to price adjustments. While prices for non-waterfront homes softened, premier waterfront estates continued to achieve premium prices per square foot, driven by their limited availability.
Condo Market Faces Challenges
Unlike the single-family sector, the Palm Beach condo and co-op market experienced a notable slowdown. Sales volume fell approximately 21%, dropping from $531 million in 2023 to $420 million in 2024. The number of condo transactions declined as well, with 267 sales compared to 311 the previous year.
Several factors contributed to this downturn, including rising interest rates, increasing insurance premiums, and significant special assessments. Stricter state regulations following the tragic Surfside collapse also impacted older condominium buildings, particularly those along the South End’s Condominium Row, where some associations struggled to meet updated inspection and reserve requirements.
Despite fewer transactions, condos that did sell in the fourth quarter took longer to close. On average, they spent 115 days on the market, compared to 94 days in the same period of 2023. However, there was a 30% increase in condo listings, indicating that more owners were looking to sell.
Market Outlook and Trends
The Palm Beach real estate market remained dynamic in 2024, with single-family home sales holding steady while the condo sector softened. High-end buyers, often less affected by rising interest rates, continued to drive demand for premium properties. Meanwhile, the post-election period brought renewed confidence, further fueling activity in the luxury segment.
As the new year unfolds, all eyes are on inventory levels, pricing trends, and the evolving regulatory landscape. While challenges remain for the multifamily sector, the resilience of Palm Beach’s luxury home market suggests continued opportunities for buyers and sellers navigating this prestigious market.
source: www.palmbeachdailynews.com
