MIAMI — Palm Beach County mid-market condo sales and total median prices increased in June, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Total sales declined last month mainly due to lack of supply in certain price points, but they are expected to increase in the future because of declining mortgage rates, increased consumer confidence and demand from high earners in tax-burdened states.
“Low mortgage rates make now the perfect time to purchase Palm Beach real estate,” 2019 JTHS-MIAMI President Kim Price said.
Total Home Sales Decrease in June
Palm Beach total home sales decreased 7.7%, from 3,095 to 2,858. Coming off a robust May that pointed to growing demand, Miami home sales declined last month. Home sales also declined statewide and nationally.
Palm Beach single-family home sales decreased 6.3%, from 1,805 to 1,692. Palm Beach condo sales decreased 9.6%, from 1,290 to 1,166.
Palm Beach condos priced between $250,000 to $400,000 saw an 8.5% year-over-years sales increase in June 2019, from 212 to 230.
Total sales volume decreased from $1.39 billion to $1.19 billion. Single-family home dollar volume increased 16.4%, from 1 billion to $858.2 million. Condo dollar volume decreased 16.1%, from $392.8 million to $329.7 million.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 3.80% in June, down from 4.07% in May. The average commitment rate across all of 2018 was 4.54%.
Palm Beach Single-Family Home Median Prices Continue Rising
Palm Beach County single-family home prices increased 0.6%, from $355,000 to $356,990. Existing condo prices stayed even at $190,000.
Palm Beach Distressed Sales Comprise Just 2.6% of Total Sales
Only 2.1% of all closed residential sales in Palm Beach were distressed in June 2019, including REO (bank-owned properties) and short sales, compared to 3% in June 2018.
Total Palm Beach distressed sales decreased 35.1% year-over-year, from 94 to 61.
Short sales and REOs accounted for 0.4% and 1.7%, respectively, of total Palm Beach sales in June 2019. Short sale transactions decreased 26.7% percent, from 15 to 11. REOs decreased 36.7%, from 79 to 50.
Nationally, distressed sales represented 2% of sales in June, unchanged from May but down from 3% in June 2018. Less than 1% of June 2019 sales were short sales.
Palm Beach Real Estate Selling Close to List Price
The median number of days between listing and contract dates for Palm Beach single-family home sales was 50 days, a 16.3% increase from 43 days last year. The median number of days between the listing date and closing date for single-family homes was 97 days, a 6.6% increase from 91 days.
The median time to contract for condos was 56 days, a 9.8% increase from 51 days last year. The median number of days between listing date and closing date was 98 days, a 6.5% increase from 92 days last year.
The median percent of original list price received for single-family homes was 94.6%. The median percent of original list price received for existing condominiums was 93.6%.
National and State Statistics
Nationally, total existing-home sales dropped 1.7% from May to a seasonally adjusted annual rate of 5.27 million in June. Sales as a whole are down 2.2% from a year ago (5.39 million in June 2018).
Statewide closed sales of existing single-family homes totaled 27,283 last month, down 1.9% from June 2018, according to Florida Realtors. Florida’s condo-townhouse market had 10,094 sales, down 9.4% compared to a year ago.
The national median existing-home price for all housing types in June reached an all-time high of $285,700, up 4.3% from June 2018 ($273,800). June’s price increase marks the 88th straight month of year-over-year gains.
June’s statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year for 90 months in a row. The statewide median sales price for single-family existing homes was $270,000, up 3.8% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $194,900, up 2.6% over the year-ago figure.
Palm Beach Cash Buyers Represent More than Double the National Figure
Palm Beach cash transactions comprised 40.3% of June 2019 total closed sales, compared to 42.3% last year. Palm Beach cash transactions are more than double the national figure (16 percent).
Condominiums comprise a large portion of Palm Beach’s cash purchases as 54% of condo closings were made in cash in June compared to 30.9% of single-family home sales.
Seller’s Market for Palm Beach Single-Family Homes and Condos
Inventory of single-family homes decreased 1.5% in June from 6,858 active listings last year to 6,753 in June 2019. Condominium inventory decreased 3% to 5,691 from 5,867 listings during the same period in 2018.
Months supply of inventory for single-family homes stayed even at 4.8 months, which indicates a seller’s market. Existing condominiums have a 5.1-month supply, which also indicates a seller’s market. A balanced market between buyers and sellers offers between six and nine months of supply.
Total active listings at the end of June decreased 2.2% year-over-year, from 12,725 to 12,444.
New listings of Palm Beach single-family homes decreased 7% to 1,829 from 1,967. New listings of condominiums decreased 8.8% to 1,372 from 1,504.
Nationally, total housing inventory at the end of June increased to 1.93 million, up from 1.91 million existing-homes available for sale in May, but unchanged from the level of one year ago. Unsold inventory is at a 4.4-month supply at the current sales pace, up from the 4.3-month supply recorded in both May and in June 2018.
To access June 2019 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 214 international organizations worldwide. MIAMI’s official website is www.miamirealtors.com