West Palm Beach, Florida, has experienced a remarkable increase in home prices, seeing a 12.8 percent rise year-over-year in the four weeks ending July 28, according to recent data from Redfin. This surge marks one of the highest home price hikes in the country.
This change comes after a challenging period for the city, which was facing price declines until June. In fact, the median sale price in June was $450,000, reflecting an 8.2 percent drop from the previous year.
Interestingly, while home prices are climbing, pending sales are on the decline, falling 13 percent in the same period. This trend places West Palm Beach among the five U.S. metropolitan areas with the steepest year-over-year drops in pending sales.
Despite some relief in mortgage rates, which recently showed signs of stabilizing, many potential buyers are still hesitating. “Prices and payments are still near record highs,” Redfin noted, along with a scarcity of desirable listings.
Year-over-year, new listings have increased by 4 percent, but that growth has slowed down, marking the smallest increase since November. Additionally, almost two-thirds of homes on the market are lingering for over 30 days, suggesting that current listings may not align with what buyers are looking for.
Some prospective homebuyers are biding their time, awaiting clarity on the next presidential election before making a purchase decision. This trend has contributed to a national slide in home sales, reflecting the largest year-over-year decline in nine months as of late July.
Though home prices in West Palm Beach are just shy of their peak of $490,000 reached in June 2023, homes are now sitting on the market for an average of 81.5 days—more than double what would typically be considered a “stale” listing.
This rise in home prices amid buyer hesitance could signal optimism in the market, particularly as mortgage rates show signs of easing. Currently, the weekly average mortgage rate stands at 6.78 percent, down from a high of 7.22 percent in May.