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Palm Beach Total Annual Home Sales Rise in 2018

by | Feb 13, 2019
Palm Beach County total home sales, median sale price, total dollar volume and luxury sales all increased year-over-year in 2018, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.

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MIAMI — Palm Beach County total home sales, median sale price, total dollar volume and luxury sales all increased year-over-year in 2018, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.

Palm Beach Total Annual Home Sales Rise in 2018

Palm Beach’s existing condo market led the charge, posting 13,866 transactions (up 5.9 percent from 2017). Palm Beach’s existing single-family homes market had 17,419 sales, up 1.0 percent from 2017. Lack of supply in certain price ranges and neighborhoods and higher interest rates impacted sales. Decreasing rates are expected to boost sales in coming months.

“Palm Beach real estate continues to be one of the top places in the United States to live, work and play,” Jupiter Tequesta Hobe Sound (JTHS-MIAMI) President Kim Price said. “Strong pent-up demand led to significant increases in sales in Palm Beach’s luxury market year-over-year as median prices and dollar volume rose for all properties.”

Palm Beach Existing Condo Sales Surge 5.9 Percent in 2018
Palm Beach total home sales increased 3.1 percent in 2018, from 30,353 to 31,285.

Palm Beach’s condo market posted 13,866 sales in 2018, up 5.9 percent from 13,098 in 2017. Palm Beach’s existing single-family homes market had 17,419 sales, up 1.0 percent from 2017.

Total Palm Beach Luxury Sales Jump 20.5 Percent
Total Palm Beach luxury ($1 million and up) sales surged 20.5 percent in 2018, from 1,503 to 1,811.

Palm Beach condo luxury sales increased 33.2 percent in 2018, from 380 to 506. Palm Beach single-family luxury sales increased 16.2 percent in 2018, from 1,123 to 1,305.

There is strong pent-up demand for Palm Beach luxury single-family homes. Luxury sellers are becoming more realistic with their asking prices. Federal tax reform is having an impact as more Northeastern buyers are opting to purchase in Palm Beach to escape the higher taxes they could face in states like New York and New Jersey.

Federal tax reform, which was signed into law Dec. 22, 2017, sets a deductions cap for income, sales and property taxes at $10,000. The new cap could lead more residents of states with high property values and state income tax to purchase properties in states such as Florida, which has no state income tax and a pro-business tax structure.

$13.5 Billion in Palm Beach Home Sales in 2018
Sales volume for all Palm Beach properties in 2018 totaled $13.5 billion, up from $12.1 billion in 2017.

Palm Beach existing single-family homes finished 2018 with a median sales price of $345,000, up 4.6 percent from $329,900 the previous year. The Palm Beach median price for existing condominiums in 2018 was $178,000, an increase of 6.3 percent from $167,500 in 2017.

Hottest Palm Beach Neighborhoods at Year-End 2018
Months’ supply of inventory, which is an important indicator of consumer demand and market performance, reflects limited supply in many neighborhoods and price ranges. As a result, lack of supply is also impacting property sales, particularly for single-family homes.

Top Palm Beach neighborhoods with the lowest months of supply of inventory with significant closed sales activity at year-end 2018:

Single-Family Homes

  1. Riviera Beach, a north Palm Beach city east of West Palm Beach, had 1.7 months supply
  2. Royal Palm Beach, a north Palm Beach village north of Wellington, had 1.8 months supply
  3. Boynton Beach, a south Palm Beach city north of Delray Beach, had 1.8 months supply
  4. Jupiter, a north Palm Beach city near the Martin County line, had 1.9 months supply
  5. Jupiter Farms, a north Palm Beach community that sits along the Martin County line, had 2.0 months supply

Condominiums

  1. Greenacres, a Palm Beach city east of Wellington, had 1.0 months supply
  2. Palm Springs, a central Palm Beach village west of Lake Worth, had 1.5 months supply
  3. Royal Palm Beach, a north Palm Beach village north of Wellington, had 1.8 months supply
  4. Tequesta, a north Palm Beach village that sits on the Martin County line, had 1.8 months supply
  5. Lake Worth, a north Palm Beach city west of Palm Beach, had 2.0 months supply

Palm Beach Real Estate Selling Close to List Price
The average percent of original list price received for single-family homes in 2018 was 94.8 percent in 2018, an increase of 0.1 percent from a year earlier. The median number of days to contract for Palm Beach single-family homes decreased 2.0 percent to 49 days in 2018 from 50 days in 2017.

The median number of days to contract for condominiums sold in 2018 was 51 days, down 5.6 percent from 54 days in 2017. The average percent of original list price received was 94.0 percent, a 0.4 percent year-over-year increase.

State Year-End Statistics
Statewide closed sales of existing single-family homes totaled 277,827 in 2018, up 2.2 percent compared to the 2017 figure, according to Florida Realtors. The statewide median sales price for single-family existing homes in 2018 was $254,505, up 7.2 percent from the previous year.

Looking at Florida’s year-to-year comparison for sales of townhouse-condos, a total of 116,706 units sold statewide in 2018, up 4.9 percent from 2017. The statewide median price for townhouse-condo properties in 2018 was $185,000, up 7.2 percent over the previous year.

The interest rate for a 30-year fixed-rate mortgage averaged 4.54 percent for 2018, up significantly from the previous year’s average of 3.99 percent, according to Freddie Mac.

Palm Beach Cash Buyers Represent More than Double the National Figure
In 2018, cash deals represented 45.3 percent of Palm Beach’s total closed sales, which is a decrease from 46 percent in 2017. About 20 percent of all U.S. housing sales are made in cash, according to NAR. Broward’s high percentage of cash sales reflects South Florida’s ability to attract a diverse number of international home buyers, who tend to purchase properties in all cash.

Condominiums comprise a large portion Palm Beach’s cash purchases as 58.9 percent of condo closings were made in cash in 2018 compared to 34.6 percent of single-family home sales.

Distressed Property Transactions Continue to Decline in Palm Beach
About 3.3 percent of all closed residential sales in Palm Beach were distressed in 2018, including REO (bank-owned properties) and short sales, compared to 5.2 percent in 2015.

Short sales and REOs accounted for 0.7 and 5.2 percent, respectively, of Palm Beach sales in 2018. Short sale transactions dropped 35.2percent year-over-year while REOs decreased 74.5 percent. A decline in short sales points to more homeowners with increased equity, which should result in increased market activity.

Seller’s Market for Palm Beach Real Estate
Inventory of single-family homes increased 7.2 percent in 2018 from 6,849 active listings in 2017 to 7,344 in 2018. Condominium inventory decreased 1.8 percent to 6,214 in 2018 from 6,327 listings in 2017. Despite a condo countywide inventory increase, there are inventory shortages in certain price ranges and market segments.

At the end of 2018, inventory for Palm Beach single-family homes stood at a 5.1-month supply, a 6.3 percent increase from 4.8 months in the previous year. Inventory for Palm Beach existing condominiums at the end of 2018 stood at 5.4 months, down 6.9 percent from 5.8 in 2017. A balanced market between buyers and sellers offers between six and nine months supply of inventory.

Total active listings at the end of 2018 increased 2.9 percent year-over-year, from 13,176 to 13,558. Active listings remain about 60 percent below 2008 levels when sales bottomed.

New listings of Palm Beach single-family homes at year-end 2018 increased 2.5 percent from 23,742 to 24,333. New listings of condominiums increased 1.4 percent, from 19,687 to 19,953.

4Q 2017: Palm Beach Single-Family Home, Condo Sales Rise
Palm Beach closed sales of existing single-family homes totaled 3,877 in the fourth quarter of 2018, down 0.4 percent compared to the previous year. Palm Beach existing condo sales totaled 3,070 in 4Q 2018, up 4.6 percent year-over-year.

Statewide closed sales of existing single-family homes totaled 63,483 in the fourth quarter of 2018, up 0.1 percent compared to the year-ago figure, according to Florida Realtors. Looking at Florida’s year-to-year comparison for sales of condos-townhouses, a total of 26,069 units sold statewide in 4Q 2018, up 1.9 percent compared to the same period a year earlier.

Nationally, Total existing-home sales, including single family homes and condos, decreased 1.8 percent to a seasonally adjusted annual rate of 5.180 million in the fourth quarter, down from 5.273 million in the third quarter, according to NAR. That number is 7.4 percent lower than the 5.593 million-pace during the fourth quarter of 2017.

Median sale prices for Miami single-family homes increased 6.6 percent, from $332,925 to $355,000, in 4Q 2018. Condo median prices increased 1.7 percent from $230,000 to $234,000.

The statewide median sales price for existing single-family homes for the quarter was $255,000, up 6.3 percent from 4Q 2017. The statewide median price for condo-townhouse properties in 4Q 2018 was $184,000, up 5.1 percent over the previous year.

The national median existing single-family home price in the quarter was $257,600, up 4.0 percent from the fourth quarter of 2017 ($247,800).

New listings of Palm Beach single-family homes for sale in 4Q 2018 increased 2.1 percent compared to the same quarter the previous year, from 5,410 to 5,522. New listings for existing condos in 4Q 2018 decreased 6.7 percent from 5,023 to 4,687.

To access Year-end 2018, 4Q 2018 and Local Residential Market Metrics Year-end 2018 Palm Beach County Statistical Reports, visit http://www.SFMarketIntel.com

Note: Statistics in this news release may vary depending on reporting dates. MIAMI reports exact statistics directly from its MLS system

About the MIAMI Association of Realtors
The MIAMI Association of Realtors was chartered by the National Association of Realtors in 1920 and is celebrating 99 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of six organizations, the Residential Association, the Realtors Commercial Alliance, the Broward-MIAMI Association of Realtors, the Jupiter Tequesta Hobe Sound (JTHS-MIAMI) Council, the Young Professionals Network (YPN) Council and the award-winning International Council, it represents 47,000 real estate professionals in all aspects of real estate sales, marketing, and brokerage. It is the largest local Realtor association in the U.S. and has official partnerships with 204 international organizations worldwide. MIAMI’s official website is www.MiamiRealtors.com

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