MIAMI — Palm Beach County single-family home sales increased year-over-year in November 2019, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Palm Beach continues in a seller’s market (inventory below 6 months of supply) with months of supply trending downward, a sign of the high demand for Palm Beach real estate.
“Palm Beach real estate continues to see strong demand and low supply in particular price points,” JTHS-MIAMI President Kim Price said. “Several Palm Beach County cities are in hot demand with low months’ supply of inventory. We expect to see an increased number of buyers from tax burdened states.”
Palm Beach County Single-Family Home Sales Rise in November
Total Palm Beach County home sales declined 3.7%, from 2,205 to 2,124. Palm Beach single-family home sales increased 0.4%, from 1,189 to 1,194. Palm Beach condo sales decreased 8.5%, from 1,016 to 930.
Lack of inventory in lower price points contributed to the decline in transactions. With consumer confidence rising, unemployment low, job creation high and increased migration to Florida, Palm Beach real estate should enjoy steady growth.
Single-family home dollar volume decreased 5.6%, from $619.2 million to $584.5 million. Condo dollar volume increased 11.4%, from $274 million to $305.1 million.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased to 3.70% in November, up from 3.69% in October. The average commitment rate across all of 2018 was 4.54%.
A new condo approval process could increase sales in the future. The new guidance, which goes into effect in mid-October, extends certifications from two years to three, allows for single-unit mortgage approvals, provides more flexibility with owner/occupancy ratios, and increases the allowable number of FHA loans in a single project. The changes, many of which MIAMI and NAR has championed, should yield thousands of new homeownership opportunities.
Another Month of Price Appreciation in Palm Beach
Palm Beach County single-family home prices increased 0.6% in November 2019, increasing from $348,000 to $350,000. Existing condo prices increased 6.5%, from $176,750 to $188,250.
Palm Beach Distressed Sales Stay Low, Reflecting Healthy Market
Only 2.8% of all closed residential sales in Palm Beach were distressed last month, including REO (bank-owned properties) and short sales, compared to 3.9% in November 2019.
Total Palm Beach distressed sales decreased 30.6%, from 85 to 59.
Short sales and REOs accounted for 0.7% and 2.1%, respectively, of total Palm Beach sales in November 2019. Short sale transactions decreased 38.1% year-over-year while REOs decreased 28.1%.
Nationally, distressed sales represented 2% of sales in November, unchanged from both October 2019 and November 2018.
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 44 days, a 12% decrease from 50 days last year. The median number of days between the listing date and closing date for single-family homes was 88 days, a 3.3% decrease from 91 days.
The median time to contract for condos was 46 days, a 6.1% decrease from 49 days last year. The median number of days between listing date and closing date decreased 2.3% to 86 days.
The median percent of original list price received for single-family homes was 95.2%. The median percent of original list price received for existing condominiums was 94.4%.
National and State Statistics
Nationally, total existing-home sales transactions decreased 1.7% from October to a seasonally-adjusted annual rate of 5.35 million in November. However, sales are up 2.7% from a year ago (5.21 million in November 2018).
Statewide closed sales of existing single-family homes totaled 21,842 last month, up 6.1% from November 2018, according to Florida Realtors. Florida’s condo-townhouse market totaled 8,101, down 6.3% from the level a year ago. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
The national median existing-home price for all housing types in November was $271,300, up 5.4% from November 2018 ($257,400), as prices rose in all regions. November’s price increase marks 93 straight months of year-over-year gains.
Statewide median sales prices for both single-family homes and condo-townhouse properties in November rose year-over-year for 95 consecutive months. The statewide median sales price for single-family existing homes was $265,000, up 3.9% from the previous year. Last month’s statewide median price for condo-townhouse units was $195,000, up 5.4% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Palm Beach Cash Buyers Represent More than Double the National Figure
Palm Beach cash transactions comprised 43.7% of November 2019 total closed sales, compared to 44.9% last year. Palm Beach cash transactions are more than double the national figure (20%).
Condominiums comprise a large portion of Palm Beach cash purchases as 57.5% of condo closings were made in cash in November compared to 32.9% of single-family home sales.
Seller’s Market for Palm Beach Real Estate
Inventory of single-family homes decreased 13.7% in November from 7,405 active listings last year to 6,390 last month. Condominium inventory decreased 6.4% to 5,844 from 6,242 listings during the same period in 2018.
Months supply of inventory for single-family homes decreased 11.8% to 4.5 months, which indicates a seller’s market. Existing condominiums have a 5.3-month supply, which also indicates a seller’s market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Total active listings at the end of November decreased 10.4% year-over-year, from 13,647 to 12,234.
New listings of Palm Beach single-family homes decreased 13.1% to 1,662 from 1,913. New listings of condominiums decreased 1.1%, from 1,587 to 1,570.
Nationally, total housing inventory at the end of November totaled 1.64 million units, down approximately 7.3% from October and 5.7% from one year ago (1.74 million). Unsold inventory sits at a 3.7-month supply at the current sales pace, down from 3.9 months in October and from the 4.0-month figure recorded in November 2018. Unsold inventory totals have declined for five consecutive months, constraining home sales.
To access November 2019 Palm Beach 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 52,000 total 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 221 international organizations worldwide. MIAMI’s official website is www.MiamiRealtors.com