MIAMI — Palm Beach County existing condo sales rose in 3Q 2021, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Palm Beach County total home sales decreased a negligible 0.6% year-over-year in 3Q 2021, from 9,271 to 9,217. Palm Beach single-family home transactions decreased 11.8%, from 5,498 to 4,848 due to low inventory. Palm Beach existing condo sales rose 15.8%, from 3,773 to 4,369.
“Total Palm Beach County home sales remain essentially on par with a year ago when the county saw a major surge in sales,” JTHS-MIAMI President Bill Mate said. “Palm Beach total home sales are up significantly when compared to 3Q 2021 showing the continued attraction of the low-tax, pro-government Palm Beach County lifestyle.”
Transactions showed strong gains when comparing 3Q 2021 to 3Q 2019. Palm Beach total home sales jumped 14.6% when comparing 3Q 2019 to 3Q 2021, from 8,046 to 9,217 transactions. Condo sales (up 30.5%) and single-family home sales (up 3.2%) rose from 3Q 2019 to 3Q 2021.
Lack of inventory in certain price points is impacting sales, particularly for single-family homes. Increased housing starts and more sellers listing properties in 2022 should help alleviate the lack of supply.
Palm Beach Condo Luxury Sales Jump 45% as Northeast and West Coast Buyers Move to Mega Region
Palm Beach County single-family home luxury ($1-million-and-up) transactions surged 12.7% year-over-year to 674 transactions in 3Q 2021. Palm Beach County condo luxury sales increased 45% to 219 transactions in 3Q 2021.
Record-low interest rates; a record-high S&P 500; the appeal of stable assets in a volatile economy; homebuyers leaving tax-burdened Northeastern and West Coast states to purchase in Florida (no state income tax); and work-from-home and remote-learning policies have all combined to create a robust market for luxury single-family properties.
With global vaccinations rising and unstable political situations around the world, South Florida is seeing an increase in foreign homebuyers. Global sales are set to surge even more now that vaccinated foreigners are allowed to resume travel to the U.S. starting November 8. Global buyers purchase in Miami because Miami is a world-class global city with better real estate prices than other similar global cities. Foreign buyers feel at home with our incredible diversity and acceptance of all cultures.
Palm Beach Homeowners’ Home Equity Continues Surging as Many Pay Lower Mortgage Payments
With interest rates still at record lows, many South Florida homeowners have refinanced their home loans. So not only are many homeowners paying lower mortgage payments today; they are doing so while their wealth (home equity) has significantly increased. Home equity can be tapped for renovations, college loans and more.
Palm Beach County single-family home median prices rose 20.3% year-over-year, from $399,000 to $480,000. Palm Beach existing condo median prices rose 14.5% year-over-year, from $205,250 to $235,000.
Rising median prices is a trend nationwide as record-low mortgages rates and the increased availability of remote work and education has accelerated the demand for housing. Low inventory relative to high demand leads to prices rising.
Should mortgage rates resume their upward climb, home price growth is likely to slow in response. Also, as more sellers list properties in 2022, the increased inventory should ease the growth of median prices.
Miami remains a bargain compared to other global cities. In Miami, $1 million can net homebuyers 85 square meters of prime property, according to Knight Frank’s 2021 The Wealth Report. Monaco (15 square meters), Hong Kong (23), London (31), New York (34) and Geneva (35) and others offer significantly less prime land for $1 million.
Palm Beach Dollar Volume Totals $5.5 Billion, Showcasing Impact Housing Plays in Local Economy
While other industries struggled over the past year, housing lifted the economy nationally and locally. For every two homes sold in the U.S., one job is created. Miami dollar volume showcases the impact housing plays in the local economy.
Palm Beach single-family home dollar volume rose 4.7%, from $3.8 billion to $3.9 billion. Palm Beach existing condo dollar volume increased 32.5% to $1.6 billion.
Non-distressed sales comprised about 99.2% of all closed residential sales in 3Q 2021 vs. 98% in 3Q 2020. Only 0.8% of all closed residential sales in Palm Beach were distressed in 3Q 2021, including REO (bank-owned properties) and short sales, compared to 2.0 in 3Q 2020.
Short sales and REOs accounted for 0.3% and 0.5%, respectively, of total Palm Beach sales in 3Q 2021. Short sale transactions decreased 3.8% year-over-year while REOs fell 73.6%.
Lower mortgage rates made home purchases more affordable in 2021. According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage declined to 2.98% from 3.09% last week. Last year at this time the rate stood at 2.84%.
Robust Demand for Housing Statewide, Nationally
Statewide, closed sales of single-family homes statewide totaled 88,592 in 3Q 2021, down 1.1% from the 3Q 2020 level; closed sales of condo-townhouse properties totaled 37,876, up 13% compared to the same quarter a year ago, according to data from Florida Realtors Research department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.
The statewide median sales price for single-family existing homes in the third quarter was still up 18.4% year-over-year (to $355,000), while the median condo and townhouse price was up 18.6% (to $254,900) compared to a year ago. The median is the midpoint; half the homes sold for more, half for less.
Nationally, median sales price of single-family existing homes climbed 16% from one year ago to $363,700, a slower pace in comparison to the preceding quarter (22.9%). All four major regions had double-digit year-over-year price growth, led by the Northeast (17.5%), followed by the South (14.9%), the Midwest (10.7%), and the West (10.3%).
High-Demand/Low Inventory Market for Palm Beach County Real Estate
New listings for single-family homes decreased 7.7% year-over-year in 3Q 2021, from 5,819 to 5,372. New listings for condos decreased 8.7% year-over-year in 3Q 2021, from 5,087 to 4,642.
At the current sales pace, the number of active listings represents 1.4 months of inventory for single-family homes (seller’s market) and 1.4 for condominiums (seller’s market). A balanced market between buyers and sellers offers between six and nine months of supply inventory.
Palm Beach real estate had 4,402 active listings in 3Q 2021, a 53.6% drop from the 9,489 listings at the same time last year. The inventory for single-family homes dropped 42.8%, from 4,141 to 2,370. Palm Beach existing condo inventory decreased 62%, from 5,348 to 2,032.
Palm Beach Real Estate Attracting Multiple Bids, Buyers Going Over-List Price
With low inventory, particularly for single-family homes, Palm Beach properties are attracting multiple bids and buyers going over-list price. The median percent of original list price received was 100% for single-family homes and 97.8 for condos in 3Q 2021.
The median time to contract for single-family home listings was 12 days, a 66.7% drop from 36 days in 3Q 2020. The median time to sale for single-family homes decreased 27.5%, from 80 days to 58.
The median time to contract for existing condos was 17 days, a 62.2% drop from 45 days in 3Q 2020. The median time to sale for existing condos decreased 29.9%, from 87 to 61.
Palm Beach Sales More than Double National Figure in 3Q 2021
Cash sales represented 48.2% of Palm Beach closed sales in 3Q 2021, compared to 37.7% in 3Q 2020. About 23 percent of U.S. home sales are made in cash, according to the latest NAR statistics.
The high percentage of cash buyers reflects South Florida’s top position as the preeminent American real estate market for foreign buyers, who tend to purchase with all cash as well as some moving from more expensive U.S. markets who are able to buy more with their profits from real estate sales.
Cash sales accounted for 57.6% of all Palm Beach County existing condo sales and 39.8% of single-family transactions.
3Q 2021 Palm Beach County Statistical Reports — visit 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 101 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 223 international organizations worldwide. MIAMI’s official website is www.miamirealtors.com
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