Palm Beach County just crossed into balanced market territory for the first time since the pandemic recovery. Broward is still catching up, but the gap is closing fast.
Key Takeaways
- Palm Beach County absorption rate dropped to 5.29 months, officially entering balanced market territory.
- Condos are taking significantly longer to sell than single family homes across both counties.
- Luxury sales above $1.5 million surged 41% in Palm Beach and 30% in Broward year-to-date.
Through the first three quarters of 2026, Palm Beach County and Broward County continued the trends we identified in our mid-year report. Inventory (the total number of homes available for sale) kept falling. Sales kept rising. And absorption rates (how long it would take to sell all current homes at the current sales pace) improved across both markets. But Q3 brought a milestone: Palm Beach officially entered balanced market conditions. Meanwhile, a deeper analysis of property types revealed significant differences in how quickly condos, townhouses, and single family homes are selling.
Data sourced from MLS records for Palm Beach and Broward counties, comparing YTD 2025 to YTD 2026 (January through September). Data downloaded October 7, 2026.
Palm Beach County hits balanced market at 5.29 months
This is the headline of the Q3 report. Palm Beach County's absorption rate dropped to 5.29 months as of September 2026. That is down from 7.75 months at the same time last year, a 32% improvement.
What does the absorption rate tell you?
- 5 to 6 months: Balanced market — neither buyers nor sellers have a clear advantage
- Below 5 months: Seller's market — low supply gives sellers more leverage
- Above 6 months: Buyer's market — more options give buyers the upper hand
For the first time in a long time, Palm Beach is right in that balanced zone.
Broward County also improved significantly. The absorption rate dropped from 9.75 months to 7.34 months, a 25% improvement. Still in buyer's market territory, but trending in the right direction. If current trends continue, Broward could approach balanced conditions by early 2027.
Inventory reached its lowest point since January 2024
The supply squeeze that began in Q1 has accelerated through Q3. Inventory has declined every single month of 2026.
In Palm Beach County, current inventory is down 21% since January. We started the year with over 14,500 active listings (homes currently on the market and available to buy). Now we are at 11,476. That is the lowest inventory level Palm Beach County has seen since January 2024.
Broward County shows the same pattern, with inventory down 14% since January.
Both counties are now well below pre-pandemic inventory levels. Palm Beach is 19% below the average from 2016 to 2019. Broward is 8% below. This is a continuation of the trend we highlighted in our H1 2026 market report, but the decline has accelerated.
New listings (homes that just came on the market) are also down compared to last year. Palm Beach saw a 9% decrease in new listings year-to-date. Broward was down 12%. Fewer sellers are entering the market, and the homes that do list are getting absorbed faster.
Homes are selling faster than last year
Homes are selling faster than they were a year ago.
In Palm Beach County, the median days on market (the typical time it takes a home to go from listing to contract) improved from 57 days to 51 days year-over-year. That is an 11% improvement. Broward County went from 59 days to 54 days, an 8% improvement.
This is a positive signal. Despite everything the market has been through over the past two years, the typical home is now selling faster than it did in 2025. Well-priced properties in good condition are moving.
Prices continue to rise in Palm Beach while Broward holds steady
The price divergence between the two counties continues.
In Palm Beach County, the average sale price is up 15% year-over-year. The median (the middle price point, where half of homes sold for more and half sold for less) is up 4%. We track both because the average can be pulled up by a few very expensive sales, while the median shows what a typical buyer is actually paying. Both numbers rising is a sign of broad-based appreciation, reflecting the tightening supply conditions and steady demand.
In Broward County, the average sale price is up 6% year-over-year. The median is up 1%. Essentially flat. Buyers shopping in Boca Raton or Delray Beach are seeing different conditions than those looking in Fort Lauderdale or Parkland.
These are healthy numbers across the board. Steady appreciation (prices rising over time) without the extreme spikes we saw during the pandemic years.
Condos are taking significantly longer to sell than single family homes
This is one of the most significant findings in the Q3 data. We did a deep dive into how different property types are performing, and the results are notable.
Single family homes are selling in roughly 60 to 70 days on average in both counties. Townhouses are taking a bit longer. But condos are taking significantly more time: over 90 days in Palm Beach County and over 100 days in Broward County.
That gap is substantial. Condos are taking meaningfully longer to sell than single family homes, and this has implications for both buyers and sellers.
If you are a condo seller, you need a stronger pricing strategy and more patience. If you are a condo buyer, you have more negotiating leverage and can shop with less urgency.
If you are a single family home seller, the market is moving. Price it right and it sells. If you are a single family home buyer, you need to act faster. There is less room for negotiation.
Waterfront properties also take longer to sell. In both counties, waterfront location adds additional time to the average days on market compared to non-waterfront homes.
Luxury market continues to surge while condo segment shows seasonal softness
Sales activity is strong in both counties. Palm Beach County is up 9% year-to-date. Broward is up 4%.
The luxury market above $1.5 million continues to lead. In Palm Beach County, sales in that segment are up 41% year-to-date compared to 2025. In Broward, they are up 30%. The high end of the market is clearly driving momentum.
However, when we compare Q3 to Q2, the luxury condo segment showed the biggest seasonal decline. In Palm Beach County, condo sales volume in the $2 million to $4 million range dropped 49% from Q2 to Q3. Single family home sales in that range dropped 27%. In Broward, luxury condo sales dropped 36% while single family dropped 14%.
This seasonal pattern is worth watching. It reinforces the broader finding: single family homes are outperforming condos across the board.
Talk to a local expert about your next move
Thinking about what these market conditions mean for your situation? Talk to a real estate agent in Palm Beach County who understands how absorption rates and property type trends affect your buying or selling strategy. Reach out to The Mastropieri Group or call (561) 544-7000.
Will the property tax bill create urgency in Q4?
The property tax bill that passed the Florida legislature in June 2026 requires voter approval in November. If approved, the homestead exemption (a tax break that reduces the taxable value of your primary residence) will rise to $150,000 in 2027 and $250,000 in 2028. That is a significant savings for Florida homeowners.
Here is the important detail: anyone who is not a Florida resident before January 1, 2027 may have to wait up to five years before they see the full benefits of the new exemption. This creates potential urgency for primary residence buyers who want to close before year-end.
We will see how this plays out in Q4 2026. Combined with the already-tightening market conditions, the fourth quarter could be very active.
FAQs about the South Florida housing market in Q3 2026
Is Palm Beach County a buyer's or seller's market right now?
Palm Beach County has officially entered balanced market territory with an absorption rate of 5.29 months. This is the first time since the pandemic recovery that the market has reached equilibrium. Neither buyers nor sellers have a significant advantage at the overall market level, though conditions vary by price point and property type.
Why are condos taking so much longer to sell than single family homes?
Several factors are at play. Following recent Florida legislation, condo associations now face stricter reserve requirements (they must set aside more money for future repairs) and mandatory milestone inspections of older buildings. This has led to more special assessments, which are one-time fees charged to condo owners to cover major repairs or upgrades. Buyer concerns about these unexpected costs, plus rising insurance premiums, have made condos less attractive. Single family homes, by contrast, offer more space and fewer shared ownership complications.
Is now a good time to buy in Broward County?
Broward remains in buyer's market territory at 7.34 months absorption, though that window is narrowing as inventory declines. If you are looking in Broward, you still have negotiating leverage, but conditions are improving for sellers faster than many expected. Acting sooner rather than later may work in your favor.
Are home prices going up or down in South Florida?
Prices are rising in both counties, though at different rates. Palm Beach County is seeing stronger growth, with the average price up 15% and the typical (median) price up 4% so far this year. Broward County is essentially flat, with the average up 6% and the median up just 1%. Neither county is seeing prices fall overall.
Should I buy before the property tax bill takes effect?
If you are a Florida resident planning to purchase a primary residence, closing before December 31, 2026 would give you immediate eligibility for the new homestead exemption (if voters approve it in November). Waiting until 2027 could mean a multi-year delay for the full benefit. This is a factor worth discussing with your real estate agent and tax advisor.
Local help for buyers and sellers in South Florida
If you are buying, selling, or investing in South Florida, it helps to work with someone who understands how market conditions differ between Palm Beach and Broward counties, and how property type trends affect your strategy. If you have questions about what this data means for your situation, reach out to The Mastropieri Group, Realtors®.
For practical, hands-on support across South Florida, call (561) 544-7000.
Posted by Larry Mastropieri
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