As South Florida’s housing market navigates a post-pandemic reset, Palm Beach County is revealing two very different stories: a condo market clearly in buyer territory, and a single-family market walking the line of neutrality.
Let’s break down what’s happening, why it matters, and what buyers and sellers need to know moving into the second half of 2025.
🏙️ Condos: Welcome to the Buyer’s Market
The numbers tell the story:
- Sales down 12% MoM, 23% YoY
- Inventory up 20% YoY
- Months of Inventory (MOI): 10 — up 9% MoM and 58% YoY
This is a textbook buyer’s market: listings are sitting longer, negotiations are more common, and buyers have plenty of options.
Additional highlights:
- Days on Market: 97 days (+14% MoM, +37% YoY)
- Sold-to-Original List Price Ratio: 86% (−4% MoM, −3% YoY)
- Average Price: $609K (−9% MoM, +8% YoY)
- Median Price: $280K (+3% MoM, −2% YoY)
- Average Price per SqFt: $452 (−10% MoM, +4% YoY)
💡 Condos are increasingly sensitive to rising insurance, HOA fees, and new compliance requirements — and buyers know it.
🏡 Single-Family Homes: A Market in Balance
Palm Beach County's SFH market is performing very differently:
- Sales down 5% MoM, 12% YoY (compared to condos: down 12% MoM, 23% YoY)
- Inventory up 29% YoY
- Months of Inventory (MOI): 4.8 — up 2% MoM and 46% YoY
This places the single-family market in a neutral zone — not overheated, but not oversupplied either.
Pricing insights:
- Average Price: $1.52M (+17% MoM, +19% YoY)
- Median Price: $687K (−0.3% MoM, −0.4% YoY)
- Average Price per SqFt: $611 (+11% MoM, +14% YoY)
- Days on Market: 68 days (+3% MoM, +13% YoY)
- Sold-to-Original List Price Ratio: 88% (−1% MoM, +7% YoY)
📊 The SFH segment is being partially buoyed by buyers opting out of aging condos with financial uncertainty.
♻️ How Condos Are Influencing the Broader Market
1. Inventory Pressure Shifting Demand
Buyers priced out of or wary of condos (due to blacklisting or fees) are now looking at affordable single-family alternatives, which is helping to absorb SFH inventory.
2. Appraisal & Financing Hurdles
Over 100 Palm Beach County condo buildings are reportedly flagged by Fannie Mae, meaning buyers need cash or unconventional financing — not ideal in a high-rate environment.
💬 Expert Insight from a Local Mortgage Professional
“Financing a condo purchase in South Florida has become increasingly complex since the Surfside collapse in 2021. In response, the state has implemented stricter regulations. Milestone inspections are now more frequent, and many associations are required to maintain higher reserve funds—both of which increase operational costs.
To prevent skyrocketing HOA dues, many associations have reduced insurance coverage or significantly raised their deductibles. Higher deductibles (anything over 5%) makes the condo association ineligible for conventional financing, leaving buyers and sellers scrambling for alternative options.”
— Kyle Nelson Loan Originator, CrossCountry Mortgage
📞 561.888.9098 | ✉️ [email protected]
📌 If you have questions about whether your building is financeable, or need help evaluating loan options, Kyle is a trusted local resource.
3. Luxury Segmentation
In contrast to entry-level condos, luxury homes in markets like Palm Beach, Jupiter, and West Palm Beach remain hot.
The contrast is stark — $609K average for condos vs. $1.52M average for SFHs.
📈 What This Means for Buyers and Sellers
If You’re Buying:
- Condos offer negotiating room — but be diligent. Review the building’s reserves, insurance coverage, inspection status, and any pending assessments before committing.
- Single-family homes still require competitive offers, especially under $1M, but you have more breathing room than during the 2021–2022 surge.
If You’re Selling:
- Condo owners must price realistically. Highlight compliance with new safety regulations, recent upgrades, and strong financial reserves to stand out.
- SFH sellers benefit from price momentum, especially in the luxury tier, but should expect longer market times unless priced appropriately.
🗾 Final Thoughts
In 2025, understanding the Palm Beach real estate market means separating condos from single-family homes. These are two fundamentally different segments — with different pricing behaviors, buyer profiles, and inventory dynamics.
Lumping them together only clouds the data. Separating them? That gives you a clearer picture — and a smarter strategy.
📞 Need help navigating this dual market?
Let’s talk. I’ll help you assess your options and position you for the best possible outcome.
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