According to the Miami Association of Realtors and Multiple Listing Service, The Palm Beach County real estate market continued to be strong in May 2023, with single-family luxury home sales up year-over-year and inventory still near all-time lows.
Single-Family Luxury Home Sales
Single-family luxury home sales in Palm Beach County rose 3.3% year-over-year in May 2023. This was driven by a surge of homebuyers from high-tax, high-density states such as New York and California.
Inventory Still Near All-Time Lows
While inventory is rising, Palm Beach County inventory is still near all-time lows. The monthly historical average for Palm Beach inventory is 16,196 and current inventory is at 7,198. Total inventory is down 46.8% from pre-pandemic (May 2019), from 13,386 to 7,126.
Home Prices Up
Palm Beach County home prices also continued to rise in May 2023. The median price for single-family homes increased 1.2% year-over-year, to $622,500. The median price for condominiums increased 2.4%, to $315,000.
Mortgage Rates Rising
One factor that is starting to weigh on the market is rising mortgage rates. The average 30-year fixed-rate mortgage is now at 6.69%, up from 5.78% a year ago. This is making it more expensive for buyers to finance a home, and it is starting to slow the pace of sales.
Outlook for the Market
The outlook for the Palm Beach County real estate market in the coming months is truly uncertain at the moment. High mortgage rates are likely to continue to weigh on the market, but the strong demand from out-of-state buyers could offset this. Overall, the market is expected to remain strong, but it may not be as hot as it has been in recent months.
Looking for the Perfect Home
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