Hello Everyone,
It’s that time of the month again when I share the Market Snapshot for single-family homes, townhouses, and condos. As you may know, I prepare this report each month to keep you informed about year-over-year trends in Palm Beach County's real estate market but this time we are going to use all 12 months as year-end results.
Single-Family Homes
In the single-family home market, we observed the slight little dip with 13317 sales in 2024 compared to 13868 in 2023. The median home price sure did go up from $597,000 in 2023 to now $630,000 in 2024 representing a 5.5% increase. The most significant shift this year was the average time it took to secure a contract—jumping up from 31 days in 2023 to now taking an average of 44 days in 2024, a 42% increase. Active listings also went up slightly from 4,575 homes in 2023 to now 5,637 homes that hit the market in 2024, reflecting a 23% increase in inventory.
Townhouses and Condos
The trend was similar in the townhouse and condo markets as the total closed sales dropped 17% going from 11980 in 2023 to 9948 this year. Median sale prices have increased slightly from $310000 to $320,000 for a condo in Palm Beach County. Meanwhile, the time to secure a contract has risen from 34 days last year to now 52 days in 2024, representing a 53% increase in time on the market. Inventory levels have also surged dramatically, climbing from 4,940 active listings in 2023 to 7287 this year—a 47.5 % jump. Now when zooming out and looking at the whole U.S. real estate market in 2024 also experienced significant shifts, impacting both buyers and sellers.Here's an updated overview:
Market Outlook
In 2024, the national housing market faced notable challenges. Existing-home sales declined to 4.06 million units, marking the lowest level since 1995. This downturn was primarily due to elevated mortgage rates, which remained between 6% and 8% throughout the year, coupled with high home prices and limited inventory. The median existing-home price in December 2024 reached just over $404,400, a 6% increase from the previous year.In South Florida, these national trends were mirrored. The combination of higher mortgage rates and increasing home prices led to a buildup in housing inventory, as many properties remained unsold. Consequently, homes spent more time on the market, and sellers began adjusting their asking prices to attract buyers.
Market Dynamics
The connection between rising mortgage rates and escalating home prices contributed to a slowdown in market activity. Homes in the US remained on the market longer, with over half of the listings in 2024 staying active for more than 60 days. The typical home took 43 days to go under contract in November 2024, marking the slowest pace since 2019.
Homeownership Rates
The national homeownership rate experienced a slight decline, decreasing to 65.6% in the third quarter of 2024 from 66% in the same period in 2023. This decrease is attributed to affordability challenges stemming from higher mortgage rates and elevated home prices, which have made homeownership less accessible for many American families.In summary, the U.S. real estate market in 2024 was characterized by declining sales, rising home prices, increased time on market, and a slight dip in homeownership rates. These trends underscore the growing affordability challenges for prospective buyers.
As we move forward, I will continue to monitor these developments and provide updates to keep you informed.
A Special Request
While I have your attention, if you can just take 1 minute to think about if you know someone who wants to buy or sell a home, and to please consider referring them to my real estate sales team. Not only will they receive award-winning service, but their home sale will help support an amazing cause. We do this every month by proudly donating a portion of the income we receive from all referrals to Big Dog Ranch Rescue, the largest cage-free, no-kill dog rescue in America. This incredible organization saves dogs from death and abuse, providing them with love, rehabilitation, and many opportunities to find their forever homes. Some will go on to serve in law enforcement, some will into pet therapy, or other special programs as emotional support dogs to comfort the sick and the elderly. Whether through donations, adoptions, fostering, or volunteering, we are committed to making a difference for dogs and families alike.Thank You!
As we enter February in this new year of 2025, please know that we are deeply thankful for your referrals and your support in this mission. Together, we can serve not just our community but also our four-legged friends who have no voice of their own and need us the most. Thank you for sharing and reading and especially for being part of this amazing journey.Now Let’s Go Serve Big!
We would like to hear from you! If you have any questions, please do not hesitate to contact us. We are always looking forward to hearing from you! We will do our best to reply to you within 24 hours !