North Palm Beach 2–3 Bedroom Condo Market: More Inventory Gives Buyers More Time

The North Palm Beach condominium market is giving buyers more choices as available inventory expands and closed-sale prices move differently from asking prices.

For this North Palm Beach market analysis, I reviewed condominium and cooperative properties with two to three bedrooms and No HOPA designation.

North Palm Beach contains a wide variety of condominium properties. Building, location, water or Intracoastal views, floor level, living area, condition, updates, monthly association fees, assessments and amenities can create substantial differences between individual units. For that reason, the broader market statistics provide context, while an individual property requires a more specific analysis.

Appraiser’s Perspective (RD8755)

Thomas J. Dunphy III, State-Certified Residential Real Estate Appraiser RD8755

Based on the overall market data, I would characterize the North Palm Beach 2–3 bedroom No HOPA condominium market as stable with declining indicators. Several current indicators are increasingly buyer-favorable, and I would continue watching the market for a potential shift toward a declining trend.

More Sales, but the Recent Pace Has Slowed

Sales activity increased over the most recent six-month period, with 84 settled sales compared with 63 during the preceding six-month period, an increase of 21 sales.

The more recent numbers, however, tell another part of the story.

There were 51 settled sales during the earlier three-month segment and 33 during the latest three-month segment. Absorption moved from 10.5 sales per month in the earlier period to 17 and then back to 11 sales per month most recently.

So while overall sales volume increased, the latest activity shows that the pace of sales has slowed from where it was just a few months earlier.

Inventory Is Building

Available inventory has increased considerably.

Active comparable listings moved from 71 to 76 and most recently to 107.

At the same time, months of housing supply moved from 6.8 months to 4.5 months before increasing to 9.7 months.

That combination matters.

There are more properties available while the recent pace of sales has slowed. Buyers have more properties from which to choose, and sellers are competing for those buyers.

Closed-Sale Prices Are Moving Down While Asking Prices Move Up

The pricing statistics are particularly interesting.

Median comparable closed-sale prices moved from:

$570,000 → $420,000 → $400,000

Meanwhile, median comparable list prices moved from:

$425,000 → $427,000 → $470,000.

In other words, sellers are currently asking more while the median prices of completed transactions have been moving in the opposite direction.

That does not mean every North Palm Beach condominium has declined by the same amount. This search contains units of different sizes, views, buildings, conditions and other characteristics.

It does mean I would give more consideration to what buyers have actually paid in completed transactions than to what current sellers are asking when analyzing the direction of the market.

Buyers Still Need to Allow for Marketing Time

Median days on market for settled sales moved from 92 days to 123 days and most recently to 87 days.

Some units will sell more quickly, while others will take considerably longer.

For this market, I would consider an exposure period of approximately three to six months, depending on the individual unit, building, view, condition, amenities and pricing.

A Current North Palm Beach Listing Tells an Interesting Story

One current listing demonstrates why buyers should look beyond the number displayed as the asking price.

364 Golfview Road #506 is currently offered at $625,000. The property is a 1,938-square-foot, two-bedroom plus den condominium with 2½ baths, a two-level layout and Intracoastal views. The listing reports a $1,400 monthly condominium fee.

Its marketing history is particularly informative.

The property originally entered the market at $675,000. It was subsequently reduced to $655,000. That listing was eventually cancelled, and the property returned to the market under another listing at $649,000 before being reduced to its current $625,000 asking price.

The MLS reports 269 cumulative days on market.

That history does not establish the market value of this particular unit, and an extended marketing period alone does not demonstrate that its current asking price is unsupported. A credible analysis would require comparison with similar closed sales and competing listings, with consideration given to differences in living area, view, condition, updates, floor level and other relevant characteristics.

But it does demonstrate something important:

A property can remain available for an extended period even after multiple pricing changes.

Tom the Realtor’s Perspective

Tom Dunphy Realtor (Fulton Grace Realty)

I recently saw the buyer-seller dynamic in this market firsthand while showing a North Palm Beach condominium.

The listing representatives were actively engaged throughout the showing and clearly focused on generating buyer interest.

One showing doesn't establish a market trend. But what I observed was consistent with the broader market data: buyers have considerable inventory from which to choose, while sellers are competing for those buyers.

If I'm representing a buyer in this market, my message is straightforward:

You have time. Use it.

That doesn't mean waiting indefinitely. It doesn't mean every property is overpriced. And it doesn't mean automatically making an offer substantially under the asking price.

It means there is time to do the homework.

When one of my buyers finds a condominium they like, I want to know what similar units have actually sold for. I want to examine the current competition. I want to know how long the property has been available and whether there have been previous listings or price changes.

Then I want to compare the individual property characteristics: building, view, living area, condition, updates, floor level, association fees, assessments and amenities.

From there, I can develop a supported market-value range.

If the asking price is above what that evidence supports, I don't automatically treat the asking price as the starting point for an offer.

Depending upon the individual property and the comparable evidence, I may advise my buyer to begin toward the lower end of the supported range and negotiate from there.

The market evidence comes first.

What This Means for Buyers and Sellers

For buyers, the current market provides something valuable: choice and time.

With 107 active comparable listings represented in the latest period and 9.7 months of housing supply, buyers can compare properties, investigate individual condominium associations, review fees and assessments, study closed sales and understand the competition before deciding how they want to proceed.

There is no reason to assume an asking price represents market value simply because that's the number attached to the listing.

For sellers, the same statistics present a different challenge.

Buyers have alternatives. Meanwhile, median closed-sale prices have moved from $570,000 to $420,000 and most recently $400,000, while the median asking price has increased to $470,000.

That makes property-specific pricing especially important.

A seller should look closely at properties that actually compete with their unit rather than relying primarily on what other sellers are asking.

North Palm Beach is not one uniform condominium market. An updated Intracoastal unit may occupy a very different market position from an interior-view unit in another building, even if both contain two bedrooms.

The individual property matters.

The Appraiser’s Edge

For more than 26 years, I've studied what homes are worth and why. Today, I bring that valuation experience to the buyers and sellers I represent.

When I'm representing a buyer, I'm not simply looking at the asking price. I'm looking at the market evidence behind it.

When I'm representing a seller, I'm not simply looking at what competing sellers are asking. I'm analyzing what buyers have actually been willing to pay and how the individual property compares.

That's The Appraiser’s Edge.

THE APPRAISER’S EDGE. THE RELOCATOR’S INSIGHT.

Tom Dunphy Realtor (Fulton Grace Realty)
Licensed Florida Real Estate Sales Associate
Tom Dunphy Sells Real Estate. Just Does More.

Appraisal Certification:
Thomas J. Dunphy III, State-Certified Residential Real Estate Appraiser RD8755

The market information and property discussions presented here are for general real estate informational and brokerage purposes and are not appraisals of any individual property. An appraisal requires a separate appraisal assignment, defined scope of work, and development and reporting in accordance with applicable appraisal standards.