West Palm Beach Housing Market Analysis - August 2024
The West Palm Beach, FL metro area housing market in August 2024 presents a complex landscape with varying trends across different metrics. The data reveals both positive and negative shifts, reflecting the dynamic nature of the real estate market in this region.
Price Metrics
The Median Sales Price for homes in West Palm Beach stands at $480,000, marking a 4.0% decrease year-over-year (YoY). Conversely, the Median List Price has risen by 2.5% YoY to $512,000. This divergence suggests that while sellers are optimistic about pricing, buyers are negotiating lower final sale prices.
Similarly, the median Price Per Square Foot has increased by 3.5% YoY to $294.79, indicating a rise in property value on a per-square-foot basis. The Median List Price per square foot also shows a 3.7% YoY increase, now at $312.50.
Sales Activity
The number of Homes Sold has seen a significant decline, with 2,072 Homes Sold in August 2024, representing a 16.7% drop YoY. Pending Sales have also decreased by 17.7% YoY, totaling 2,172. This reduction in sales activity could be attributed to various factors, including economic conditions and buyer sentiment.
On the other hand, New Listings have increased by 5.5% YoY, reaching 3,052. This influx of New Listings, coupled with a substantial 43.9% YoY increase in inventory to 12,070 homes, suggests a shift towards a buyer's market. The Months of Supply metric, which has surged by 240.0% YoY to 5.80 months, further supports this trend, indicating more available homes relative to the current sales pace.
Market Dynamics
The Median Days on Market have increased by 18.0% YoY to 79 days, reflecting a slower pace of sales. The average sale to list ratio has slightly decreased by 0.8% YoY to 95.5%, indicating that homes are selling for slightly less than their listed prices.
The percentage of Homes Sold above list price has dropped by 6.1% YoY to 6.9%, suggesting that competitive bidding situations are less common. Additionally, the rate of Price Drops has increased by 4.0% YoY to 24.5%, indicating that sellers are more frequently adjusting their expectations to attract buyers.
Lastly, the percentage of homes going off the market within two weeks has decreased by 9.4% YoY to 21.2%, further highlighting the slower market conditions.
Conclusion
In summary, the West Palm Beach housing market in August 2024 is characterized by a mix of rising list prices and declining sales prices, increased inventory, and slower sales activity. These trends suggest a shift towards a more balanced or potentially buyer-favored market, with sellers needing to adjust their strategies to align with current market conditions.
