Today’s Real Estate Market in Palm Beach County: The ‘Unicorns’ Have Galloped Off

Comparing real estate metrics in Palm Beach County from one year to another can be challenging, especially in a normal housing market. External factors and unpredictable events can significantly impact market conditions, making comparisons less meaningful or accurate. In recent years, we experienced what can be considered ‘unicorn’ years in real estate—years that were greatly desired but difficult or impossible to find. The pandemic brought about substantial changes in the housing market, leading to increased demand and unique circumstances. However, the current market is returning to a more normal state, and it’s important to avoid comparing it to those exceptional years. Here are three key factors to consider when assessing the current market in Palm Beach County:

Buyer Demand

While headlines may suggest a decline in buyer demand, the reality is that we continue to see a significant number of home sales in Palm Beach County. According to ShowingTime, over 10,000 houses are still being sold daily in the United States. While buyer activity may be lower than during the ‘unicorn’ years, it remains strong when compared the more typical years between 2017 and 2019.

Home Prices

The substantial home price increases seen in the past couple of years cannot be compared directly to the current market. 2020 and 2021 witnessed historic appreciation numbers. However, we are now returning to more normal home value increases. While there were some months of minimal depreciation in the second half of 2022, Fannie Mae reports that the market has returned to more typical levels of appreciation in the first quarter of this year. This indicates a stabilization in home prices in Palm Beach County.

Foreclosures

Recent headlines highlighting significant increases in foreclosure filings can be misleading. It’s important to understand that these increases are occurring from historically low foreclosure rates. The expiration of the foreclosure moratorium has led to a rise in filings, but when compared to the numbers between 2017 and 2019, they are within normal levels. While any foreclosure is distressing for the families involved, putting the current numbers into perspective reveals a return to more standard filing rates.