Palm Beach County’s real estate market is presenting a complex picture, with some areas experiencing price growth while others see sales decline. While the luxury enclave of Palm Beach Island continues its upward trajectory, other parts of the county are grappling with increased inventory and longer selling times, reflecting a broader cooling trend in Florida’s housing market.
Palm Beach Island: A Luxury Haven
Palm Beach Island stands out as a resilient luxury market, largely insulated from the broader slowdown affecting other Florida regions. In the first quarter of 2025, the median sales price for single-family homes on the island surged to $13.95 million, an 11.6% increase year-over-year. The top 10% of sales saw an even more dramatic jump, with the median price rising 70.9% to $23.75 million. Sales activity also saw a significant boost of 63.2%, with most transactions conducted in cash, indicating that borrowing costs are not a deterrent for its ultra-wealthy and often foreign buyers.
West Palm Beach: Signs of a Slowdown
In contrast, West Palm Beach is experiencing a more typical market adjustment. The median single-family home price reached $590,000, a modest 2.6% increase year-over-year. However, sales activity declined, with single-family home sales dropping 12.1% and condo sales falling 8.6%. The time homes spent on the market increased significantly, with single-family homes taking an average of 75 days to sell, up from 51 days a year prior. Inventory has also expanded, signaling a shift towards a more balanced market.
Boca Raton and Wellington: Mixed Fortunes
Boca Raton saw a record median sales price for single-family homes at $995,000, a 2.1% year-over-year increase. However, the condo market here softened, with median prices down 4.4%. Wellington experienced a slight dip in single-family home prices, down 3.8% year-over-year, though sales volume saw a modest increase. The condo market in Wellington, however, saw a significant jump in sales volume, but also a substantial increase in inventory.
County-Wide Trends and Outlook
Across Palm Beach County, May 2025 data indicated a general slowdown in sales for both single-family homes and condos compared to the previous year. The median sale price for single-family homes was $640,000, a slight decrease of about 1% year-over-year. The months’ supply of inventory increased to 5.8, suggesting a more balanced market where sellers are becoming more amenable to negotiations and concessions. Statewide, Florida’s real estate market is cooling due to factors like increased mortgage rates and concerns about climate risks, though Palm Beach County, particularly its luxury segment, continues to exhibit unique resilience.
Key Takeaways:
- Palm Beach Island remains a strong luxury market with significant price appreciation and sales growth.
- West Palm Beach, Boca Raton, and Wellington show signs of a cooling market with increased inventory and longer selling times, especially in the condo sector.
- May 2025 saw a general decline in sales volume for both single-family homes and condos across Palm Beach County.
- A more balanced market is emerging, with sellers becoming more willing to negotiate.
- The overall Florida market is cooling, but Palm Beach County’s high-end segment is an exception.
Sources
- Palm Beach Stands Apart as Florida’s Real Estate Market Cools, Globely News.
- Redirecting…, Palm Beach Daily News.
- Palm Beach County sales of single-family homes, condos down in May, The Palm Beach Post.
- Condo prices and sales keep falling in South Florida, except Palm Beach County, WLRN.
- South Florida’s residential market is in a months-long slump, New York Post.