Palm Beach County Housing Market Update | May 2026

The numbers are in for May, and one thing is becoming increasingly clear: the Palm Beach County single-family home market is getting more competitive. Inventory continues to tighten, buyer demand remains strong, and well-priced homes are attracting serious attention.

Single-Family Homes: Inventory Shrinks as Competition Grows

At the end of May, Palm Beach County had just 4.1 months of inventory for single-family homes, down from 4.4 months in April and significantly lower than the 5.8 months of inventory we had this time last year. The median sales price also increased from $650,000 in April to $675,000 in May, a 5.5% increase compared to May 2025.

The demand is real.

Closed sales are up 7.7% year over year, cash sales are up nearly 17%, and homes are selling faster than they were last year. The average home is going under contract in just 40 days, compared to 42 days last year. What does that mean for buyers? It means preparation matters. The buyers who are winning in this market are working with experienced professionals, have their financing lined up, and are ready to act quickly when the right opportunity comes along. In fact, I recently helped buyers secure a home in Winston Trails by beating out two cash offers. In today's market, strategy matters just as much as price.

Sellers Continue to Benefit

With inventory tightening and buyers competing for available homes, sellers are finding themselves in a favorable position. Homes that are priced correctly and presented well are attracting strong interest, and in some cases, multiple offers. While we are not seeing the extreme frenzy of the pandemic market, the data clearly shows that Palm Beach County is continuing to move toward a stronger seller's market.

Condo Market Showing Improvement

The condo and townhome market continues to tell a different story, but there is finally some encouraging news. Months of inventory have dropped from 10.2 months last year to 7.7 months today. That's a significant improvement.

Closed sales are up 6.6% year over year, and the median sales price has increased from $330,000 to $345,000. While condos are still taking longer to sell than single-family homes, the reduction in inventory suggests that buyers are becoming more comfortable with the changes we've seen over the past few years, including milestone inspections, reserve requirements, and rising association costs.

There are still opportunities for buyers in the condo market, but due diligence remains critical.

What About Interest Rates?

Mortgage rates continue to hover around 6.5%. Many buyers spent the last two years waiting for rates to drop dramatically, but the reality is that the market has adjusted to today's rate environment. Meanwhile, home prices continue to rise and inventory continues to tighten. If you're wondering what you can afford in today's market or whether now is the right time to buy, having a conversation with a knowledgeable lender and Realtor can help you understand your options.

Final Thoughts

The May numbers tell a clear story:

Single-family home inventory is shrinking and home prices are rising. Buyer competition is increasing. The condo market is improving. Demand remains strong throughout Palm Beach County.

Whether you're thinking about buying, selling, investing, or simply trying to understand where the market is headed, now is a great time to develop a strategy.

If you have questions about the market, affordability, or your home's value, I'd love to help.

Abbey Adair, REALTOR®
Century 21 Realty Professionals
You'll Always Have the A+ Advantage with Me