The West Palm Beach, FL metro area housing market in February 2025 presents a complex landscape characterized by rising prices and declining sales activity. The Median Sales Price has increased to $533,750, reflecting a year-over-year (YoY) growth of 4.7%. Similarly, the Median List Price has risen to $549,000, marking a 5.6% YoY increase. These figures indicate a robust appreciation in property values, albeit amidst a backdrop of reduced transaction volumes.

Despite the upward trend in prices, the market is experiencing a contraction in sales activity. The number of Homes Sold has decreased by 9.8% YoY, totaling 1,690 units. Pending Sales have also declined by 10.6% YoY, with 2,645 transactions currently in the pipeline. This downturn in sales is further compounded by a 7.3% YoY reduction in New Listings, which now stand at 3,610. These figures suggest a cooling demand, potentially influenced by affordability challenges or broader economic factors.

Inventory levels, however, have surged by 15.2% YoY, reaching 14,971 homes. This increase in available properties has contributed to a significant rise in the Months of Supply, now at 8.9 months, representing a 200% YoY escalation. The extended supply duration indicates a shift towards a more balanced market, or even a buyer's market, as sellers face increased competition.

The Median Days on Market have lengthened to 92 days, a 20% YoY increase, highlighting the slower pace at which homes are selling. The average sale to list ratio has slightly decreased to 94.9%, down by 0.4% YoY, suggesting that buyers are negotiating more aggressively. Additionally, the proportion of Homes Sold above list price has dropped to 5.4%, a 3.2% YoY decline, further emphasizing the tempered competitive environment.

Price adjustments remain a notable feature of the market, with 29.9% of listings experiencing Price Drops, unchanged from the previous year. The percentage of homes going Off Market Within Two Weeks has decreased by 5.1% YoY, now at 18.3%, indicating a slower turnover rate.

Overall, the West Palm Beach housing market in February 2025 is characterized by rising property values amidst declining sales and increased inventory. While sellers continue to benefit from price appreciation, the extended time on market and increased supply suggest a shift towards more favorable conditions for buyers.