Palm Beach County Housing Market: June Update

As we enter the summer months, Palm Beach County’s housing market has shown signs of cooling, with data from the Miami Association of Realtors revealing a 6% decrease in total home sales compared to the previous year.

Overview of Sales Decline

In June, total transactions fell to 2,008, down from 2,137 in June 2024. This downturn is reflected in both the single-family and condominium sectors:

• Single-family home sales: Decreased by 6.46% to 1,187 units.
• Condominium sales: Dropped by 5.41% to 821 units.

Despite this monthly setback, the year-to-date dollar volume remains slightly positive, up 1.84% to $11.7 billion. This resilience is largely driven by affluent buyers relocating from high-tax, high-density states.

Market Commentary

Ginenne Boehm, the 2025 President of the JTHS-MIAMI Realtors, remarked, "High-net-worth individuals continue migrating to South Florida, particularly into Palm Beach County, supporting the luxury end of the market." However, she noted that "limited inventory at key price points and tight condo financing are weighing on broader sales numbers."

Price Trends: Softening Across Market Segments

June also marked a decline in home prices:

• Single-family homes: Median price fell 5.2% year-over-year to $626,000 from $659,999.
• Condominiums: Experienced a 3.1% decline, with the median price dropping to $315,000.

Monthly Dollar Volume

Total dollar volume decreased by 7.16% year-over-year to $1.8 billion, with notable reductions in:

• Single-family dollar volume: Down 6.59% to $1.4 billion.
• Condo dollar volume: Fell 9.02% to $420 million.

Inventory Landscape: A Shift in Dynamics

Interestingly, June saw a significant increase in inventory:

• Total active listings climbed 19.1% year-over-year, reaching 13,929.
• Single-family home listings: Increased by 21% to 6,259.
• Condo listings: Rose 17.6% to 7,670.

However, condo inventory remains below pre-pandemic levels, with varying market conditions:

• Single-family homes: 5.7 months of supply, indicating a seller’s market.
• Existing condos: 9.7-month supply, suggesting a buyer’s market, where a balanced market is typically defined as having 6 to 9 months of inventory.

Slower Sales Cycle and Cash Purchases

The time it takes to sell homes has also lengthened:

• Single-family homes: Median time to contract increased to 42 days from 35 last year.
• Condos: Took even longer, with median days to contract rising to 61 from 46.

Interestingly, cash purchases, which have historically dominated the South Florida market, have seen a slight decline. Cash transactions made up 47.3% of all closed sales in June, down from 49.9% a year earlier.

Distressed Sales: A Rare Occurrence

In Palm Beach County, distressed sales, including foreclosures and short sales, remain low, constituting just 0.8% of total transactions in June. This is consistent with national trends, where distressed sales accounted for 3% of total U.S. sales.

Pricing and Buyer Demand

Sellers achieved a median of 93% of their original asking price for single-family homes and 91% for condos. This reflects ongoing buyer interest in well-priced properties.

Future Outlook: Market Normalization

As the Palm Beach County real estate market adjusts from its post-pandemic peaks, the combination of robust luxury demand and gradually improving year-to-date transactions suggest a normalization phase rather than a market correction. Key trends to monitor in the latter half of 2025 include:

• The performance disparity between the condo and single-family market.
• The evolving inventory dynamics.

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For more information on real estate trends, check out Miami Association of Realtors and explore their comprehensive market analyses.