By Darrell Hofheinz, Palm Beach Daily News
In Palm Beach real estate, Labor Day and the weekend that precedes it aren’t typically blockbusters when it comes to home sales.
But the holiday, which arrives on Sept. 2, does signal an unofficial end to the summer season, even if there have been only a few moderate signs in Palm Beach that relief might be on the way following months of withering heat and humidity.
Is it any wonder that many Palm Beachers who muddled through all that hot weather will welcome this Labor Day as an excuse to start thinking of fall?
And those who spent the warmer months elsewhere — in the Hamptons, perhaps, or Newport or Nantucket — are likely to see Labor Day as their cue to regroup, to get ready for what lies ahead as the season changes.
After all, if fall is on the horizon, can winter — and the bustling South Florida tourist season — be far behind? The realization that Halloween, Thanksgiving and the December holidays are looming can act as a jolt into action for those who haven’t yet finalized their plans to buy or rent a home in Palm Beach.
At least, that’s what the island’s real estate agents are hoping for.
And the Palm Beach market this summer has offered plenty of surprises, especially when it came to signed contracts and closed sales in the higher price ranges.
In June, July and the first three weeks of August, the Palm Beach County Clerk’s office recorded deeds showing 11 single-family properties on the island sold for $10 million or more. And of those, three houses changed hands at more than $25 million each, according to monthly sales reports prepared by the Rabideau Klein law firm.
Home shoppers who are on the island for the Labor Day weekend will find a few more options awaiting them than they would have seen a year ago. But the overall housing inventory remains far tighter than it was before the real estate boom ushered in by the coronavirus pandemic in 2020.
This time last year, there were 52 single-family homes and townhouses for sale in the Palm Beach Board of Realtors Multiple Listing Service. This year, that number was 69, according to a recent search of the MLS. Even so, better-quality properties — new, newly renovated and those on the water — remain in relative short supply.
Asking prices also remain higher than pre-pandemic levels, although the market has seen more than a few price cuts over the past six months as sellers have adjusted to buyers’ expectations, now that the bloom is off the boom.
The MLS search also showed 13 properties being marketed in the land category. Five of those properties, however, had houses that also appeared in the single-family category.
As far as condominiums and co-operative units go, the number of listings is also up, year over year. Labor Day shoppers in 2023 found about 84 listings townwide. This year, the number is hovering around 112, of which 64 are on the South End, while another 49 are in Midtown or the near North End.
Condo and co-op shoppers new to Palm Beach quickly discover that almost every building is at least 30 years old — and many are even older. Not surprisingly, the most in-demand apartments are in well-maintained buildings where the leaders have been pro-active in compiling reserve funds and proactively strengthening infrastructure. Savvy condo buyers are also keeping an eye on rising insurance costs and potential assessments to pay for upcoming improvements.
For those who aren’t ready to buy, meanwhile, Palm Beach homeowners are offering around 155 houses, townhomes, condos and co-ops for rent. As is typical, terms for the season and off-season — and prices — vary widely.