Condo experts discuss condo crisis at Palm Beach Post town hall
Condo industry experts explain new state laws enacted after the Surfside condominium collapse in 2021. Palm Beach Post hosts Condo Crisis town hall
- Palm Beach County’s median single-family home price dipped 2.3% to $625,000 in March compared to the previous year.
- The market is shifting towards a more balanced state for buyers and sellers due to increased inventory and a slowdown in demand.
- Rising interest rates, insurance costs, and property taxes are impacting affordability and buyer behavior.
Prices on single-family homes in Palm Beach County dipped in March compared to the previous year, settling at a median of $625,000 with buyers having more to choose amid rising inventory.
The 2.3% drop in prices on existing homes last month is barely a tremor in a housing market that has continued a slow climb since the pandemic boom time, but it is more evidence that buyers and sellers are on more equal footing.
The March home sale data, released April 24 by the Broward, Palm Beaches and St. Lucie Realtors group, noted a 15% increase in new listings compared to the same time in 2024, and a 32% increase in months supply of inventory to 5.8 months.
A balanced market where neither the buyer or seller have the upper hand is considered about 5.5 to 6 months.
“I take this as a kind of market normalization,” said Jonathan Lickstein, president of the Realtors group. “We’ve seen a slowdown of demand by buyers given the cost of home ownership, and we’re coming out of season, so a slight price adjustment is pretty natural.”
The average sale price on a single-family home was $1.04 million in March. That’s down 12% from the previous year but at least the 23rd time since early 2021 that the monthly reports noted an average price topping $1 million.
Lickstein said while interest rates aren’t hurting sales as much in the multimillion price range because fewer of those buyers rely on mortgages, others have been sidelined by not just interest rates but also expensive insurance and property taxes.
A study by Bankrate found that the average insurance premium in Florida based on $300,000 in dwelling coverage was $4,292. That’s $3,025 higher than the national average.
As of April 24, the fixed rate on a 30-year mortgage was 6.81%, according to Freddie Mac. That’s down from 7% in January.
But where they go next is hard to predict, said Kara Ng, a senior economist at Zillow.
“The economic situation is rapidly evolving,” Ng said in a Zillow article. “Absent additional softness in data or unforeseen shocks, Zillow expects mortgage rates to end the year mid-6%.”
West Palm Beach Realtor Keith Lewis with United Realty Group believes people are waiting out rollercoaster tariff talks and adjusting to a “new political climate,” but also that the housing market is transitioning back to a seasonal rhythm whereas the pandemic turned it into a year-round shopping experience.
In general, he’s seeing homes sitting longer, more homeowners dropping prices and an overall market malaise.
Homes in March took a median of 83 days for a sale to close, a 9% increase from the previous year. At the same time, the online brokerage Redfin says 32% of Palm Beach County homes for sale in March lowered their prices. That’s compared to 13% in March 2022.
“The overall sentiment is we will come out of this like a rocket ship, but whether that’s in 90 days, six months or a year, we just don’t know,” Lewis said.
The overall volume of Palm Beach County homes that sold in March was 1,255, which was up 2.4% from the same time in 2024.
That’s better than statewide results that showed the total number of homes sold dropped by 1.3% in March and a 2% dip in the median sale price to $412,500.
“Some sellers are having to adjust their expectations,” said Andy Glass of Jupiter-based Glass Realty. “Many still hope to get peak pandemic prices, but today’s buyers are cautious and rate-sensitive.”
In a recent sale, Glass said a home failed inspection because of polybutylene piping, which has been prone to rupturing and can make it difficult for buyers to get insurance or financing. The seller paid to replace the piping at a cost of about $20,000, and the deal closed.
“Sellers who are flexible and willing to price strategically are the ones who are finding success,” Glass said.
The condominium and townhome market in Palm Beach County saw a 6% drop in median sales price last month to $310,000, and a 4% drop in total sales. There were 8,470 active listings, a 30% increase from the same time in 2024.
The months’ supply of condos and townhomes was 10.3, a 51% increase from 2024.
Lickstein said the Surfside collapse and subsequent safety legislation continue to cast a shadow over condo sales, but buildings that have kept up with repairs and have no looming special assessments are still moving.
“I would encourage everyone to pay attention to what comes out of the legislative session pertaining to home hardening and condo hardening,” Lickstein said. “The problem is everything needs funding.”
Kimberly Miller is a journalist for The Palm Beach Post, part of the USA Today Network of Florida. She covers real estate, weather, and the environment. Subscribe to The Dirt for a weekly real estate roundup. If you have news tips, please send them to kmiller@pbpost.com. Help support our local journalism: Subscribe today.
