MIAMI — Palm Beach County mid-market single-family home sales increased year-over-year as pending sales and showing appointments continued trending up, according to March 2023 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
“Palm Beach County continues to be a top destination for relocating out-of-state homebuyers and companies as properties continue to appreciate,” JTHS-MIAMI President Martha Gillespie-Beeman said.
Palm Beach County Single-Family Mid-Market Sales Rise
Palm Beach County single-family mid-market homes priced homes ($400,000 to $600,000) increased 1.3% year-over-year to 486 transactions in March 2023.
Palm Beach total pending sales rose 14.5% month-over-month, from 2,717 in February 2023 to 3,111 in March 2023. Pending sales are an indicator of future sales, but it takes up to 40 days for pending transactions to close and not all pending sales end in deals.
Showing appointments in the Southeast Florida MLS, which is owned by MIAMI REALTORS®, increased 14% month over month to 270,143 showings in March.
Home sales are sensitive to mortgage rate changes and homebuyers are taking advantage of any rate declines. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.27% as of April 13. That’s down from 6.28% from the previous week but up from 5% one year ago.
Palm Beach total home sales decreased 14.9% year-over-year in March 2023, from a historic 3,289 transactions in March 2022 to 2,800 in March 2023.
In comparison to pre-pandemic March 2019, Palm Beach March 2023 total sales are up 0.7%, from 2,726 to 2,800. Comparisons to pre-pandemic are better comps as 2021 and 2022 sales surged to record highs due to pandemic-fueled homebuying, historic low 2% mortgage rates and other factors.
Single-family home sales decreased 7.9% year-over-year, from 1,590 in March 2022 to 1,465 in March 2023 because of its comparison to a historic March 2022 and the current market has lower inventory in specific price points and higher rates. In comparison to pre-pandemic March 2019, Palm Beach March 2023 single-family sales are down 3.7%.
Palm Beach March 2023 condo sales also increased vs. March 2019, but are down in comparison to last year. Palm Beach existing condo sales decreased 21.4% year-over-year, from a historic 1,699 in March 2022 to 1,355 in March 2023, due to lack of inventory and rising mortgage rates. In comparison to pre-pandemic March 2019, however, March 2023 condo sales increased 10.8%, from 1,205 to 1,335.
Palm Beach Home Prices, Household Income Rise with Wealth Migration
Palm Beach County single-family home median prices increased 6.3% year-over-year in March 2023, increasing from $541,000 to $575,000. Existing condo median prices increased 6.1%, from $294,000 to $312,000.
Home prices are determined by supply and demand. Lower supply and higher demand create higher prices. Inventory for Palm Beach single-family homes (3.2 months) and condos (3.7 months) are low. Also, one of the supports for home prices is rents and rents are up.
While local median prices have increased so have local household incomes. Florida ranked No. 1 in the U.S. in largest net gain of adjusted gross income (AGI) due to domestic migration, gaining $23.7 billion, according to most recent IRS-SOI migration data. South Florida’s out-of-state homebuyers with a mortgage earn nearly $100,000 in median household income.
Global FinTech powerhouses such as Citadel, Blackstone, Microsoft, etc. have opened offices/headquarters in South Florida.
“What’s been mainly driving South Florida’s housing market are the job growth and sustained in-migration into the area, particularly from higher-tax states like New York, New Jersey, and California, which has been experiencing a layoff of tech workers,” MIAMI REALTORS® Chief Economist Gay Cororaton said.
Palm Beach Active Listings Still Near Historical Lows; More Supply Needed
Total active listings at the end of March 2023 increased 130.5% year-over-year, from 3,365 to 7,756.
Inventory of single-family homes increased 107.4% year-over-year in March 2023 from 1,869 active listings last year to 3,876 last month. Condominium inventory increased 159.4% year-over-year to 3,880 from 1,496 listings during the same period in 2022.
New listings of Palm Beach single-family homes decreased 15.2% to 1,738 from 2,049 year-over-year. New listings of condominiums decreased 9.5%, from 1,864 to 1,686 year-over-year.
Months’ supply of inventory for single-family homes increased 166.7% to 3.2 months year-over-year, which indicates a seller’s market. Inventory for existing condominiums increased 270% to 3.7 months, which also indicates a seller’s market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Nationally, total housing inventory at the end of March was 980,000 units, up 1.0% from February and 5.4% from one year ago (930,000). Unsold inventory sits at a 2.6-month supply at the current sales pace, unchanged from February but up from 2.0 months in March 2022.
Palm Beach Real Estate Posts $315 Million Local Economic Impact in March 2023
Every time a home is sold it impacts the economy: income generated from real estate industries (commissions, fees and moving expenses), expenditures related to home purchase (furniture and remodeling expenses), multiplier of housing related expenditures (income earned as a result of a home sale is re-circulated into the economy) and new construction (additional home sales induce added home production).
The total economic impact of a typical Florida home sale is $112,500, according to NAR. Palm Beach sold 2,800 homes in March 2023 and had a local economic impact of $315 million.
Palm Beach total dollar volume totaled $2 billion in March 2023. Single-family home dollar volume decreased 14.24% year-over-year to $1.3 billion. Condo dollar volume decreased 18.27% year-over-year to $702 million.
Palm Beach Distressed Sales Remain Low, Reflecting Healthy Market
Only 1% of all closed residential sales in Palm Beach were distressed last month, including REO (bank-owned properties) and short sales, compared to 1.2% in March 2022.
Short sales and REOs accounted for 0.1% and 0.9% year-over-year, respectively, of total Palm Beach sales in March 2023.
Palm Beach’s percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented approximately 1% of sales in March, nearly identical to last month and one year ago.
Palm Beach Median Price Appreciation Outperforming Nation, State
In Florida, closed sales of single-family homes statewide totaled 26,161 in March 2023, down 15% year-over-year, while existing condo-townhouse sales totaled 11,188, down 23.5%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, total existing-home sales transactions fell 2.4% from February to a seasonally adjusted annual rate of 4.44 million in March. Year-over-year, sales waned 22.0% (down from 5.69 million in March 2022).
The statewide median sales price for single-family existing homes was $405,000, up 2.1% 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 $320,000, up 3.9% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Nationally, the median existing-home price for housing types in March was $375,700, a decline of 0.9% from March 2022 ($379,300). Prices climbed slightly in three regions but dropped in the West.
Palm Beach Real Estate Attracting Near List Price
The median percent of original list price received for single-family homes was 94.8% in March 2023, down from 100% last year. The median percent of original list price received for existing condominiums was 94.3%, down from 100% last year.
The median number of days between listing and contract dates for Palm Beach single-family home sales was 31 days, up from 10 days last year. The median time to sale for single-family homes was 73 days, up from 51 days last year.
The median number of days between the listing date and contract date for condos was 35 days, up from 10 days. The median number of days to sale for condos was 76 days, up from 50 days.
Palm Beach Cash Sales Nearly Two Times the National Figure
Cash sales represented 52.1% of Palm Beach closed sales in March 2023, compared to 57.3% in March 2022. About 27% of U.S. home sales are made in cash, according to the latest NAR statistics.
Cash buyers are not deterred by rising rates. 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 can buy more with their profits from real estate sales.
Cash sales accounted for 62.4% of all Palm Beach existing condo sales and 42.8% of single-family transactions.
To access March 2023 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 (MIAMI) was chartered by the National Association of Realtors in 1920 and is celebrating 103 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of six organizations: MIAMI RESIDENTIAL, MIAMI COMMERCIAL; BROWARD-MIAMI, a division of MIAMI Realtors; JTHS-MIAMI, a division of MIAMI Realtors in the Jupiter-Tequesta-Hobe Sound area; MIAMI YPN, our Young Professionals Network Council; and the award-winning MIAMI Global Council. MIAMI REALTORS represents nearly 60,000 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 246 international organizations worldwide. MIAMI has been selected to host the prestigious FIABCI World Congress on June 5-9, 2023. MIAMI’s official website is www.MiamiRealtors.com