West Palm Beach in Florida saw one of the biggest year-over-year home price increases in the country in the four weeks ending July 28, according to the latest data from Redfin, up 12.8 percent compared to the same period in 2023.
It was the fifth-biggest median sale price increase in the country after those reported in Detroit, Michigan (up 17.2 percent year-over-year); New Brunswick, New Jersey (15 percent); Providence, Rhode Island (13.6 percent); and Milwaukee, Wisconsin (13 percent).
It’s a significant change of direction for the city, which until June was seeing a drop in home prices compared to the previous year. According to Redfin, the median sale price of a home in West Palm Beach was $450,000 in June, down 8.2 percent compared to a year earlier.
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At the national level, the median sale price of a home was $392,563 in the four weeks ending July 28, up 4.1 percent compared to a year earlier but $3,912 below the all-time high set during the four weeks ending July 7. Newsweek contacted Redfin for comment by email on Friday morning.
Home prices are rising year-over-year in West Palm Beach even though pending sales are plunging. The Florida city was among the five U.S. metropolitan areas with the biggest year-over-year decreases in pending sales, down 13 percent compared to the four weeks ending July 28, 2023.
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According to Redfin, sales are still dwindling despite the fact that mortgage rates have finally started cooling down because “prices and payments are still near record highs” and “desirable listings” are lacking.
“New listings are up 4 percent year-over-year, but they’re losing momentum; that’s the smallest increase since November,” the Redfin report read. “And nearly two-thirds of homes for sale have been sitting on the market for at least 30 days without going under contract, indicating that many of today’s listings don’t match the wants and/or needs of house hunters.”
Some buyers are also waiting to see who will be sitting at the Oval Office next year before they decide to buy a home, according to Redfin agents. At the national level, the country saw the biggest year-over-year decline in nine months in the four weeks ending July 28.
Despite recent drops, home prices in West Palm Beach are not too far off from the peak of $490,000 reached in June 2023. While prices have budged much from their historical highs, the average home sits on the city market for 81.5 days before going under contract—more than double the time required to consider a listing “stale.”
A rise in home prices despite buyers’ reluctance might be a sign that the market feels confident that better times are ahead, especially as mortgage rates are finally showing signs of cooling. Despite still hovering around the 7 percent mark, The weekly average mortgage rate is 6.78 percent, down from May’s five-month high of 7.22 percent.
