MIAMI — Palm Beach County single-family home new pending sales rose year-over-year as total South Florida showing appointments rose once again, according to June 2023 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Palm Beach County single-family new pending sales increased 2.1% year-over-year in June 2023 to 185 transactions. South Florida showing appointments, meanwhile, increased 7% year-over-year, from 218,973 to 233,675. It is the second consecutive month showing appointments have risen year-over-year.
“High-taxed, high-density homebuyers from California, New York and other states continue searching and buying Palm Beach real estate,” JTHS-MIAMI President Martha Gillespie-Beeman said.
Palm Beach Luxury Condo Sales Surge in June 2023
Palm Beach County luxury $1-million-and-up condo sales increased 34.4% year-over-year in June 2023 to 125 transactions. Palm Beach County single-family luxury sales decreased 4.4% to 329 transactions.
Palm Beach total home sales decreased 3.4% year-over-year in June 2023, from a historic 2,724 transactions in June 2022 to 2,632 in June 2023, because of elevated mortgage rates and lack of supply in certain price points.
Most of the homes purchased in June 2023 came to terms in May when mortgage rates peaked at 7.14%. Rates, in comparison, were at 5.27% on May 5, 2022.
Home sales are sensitive to mortgage rate changes. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.96% as of July 13. That’s up from 6.81% the previous week and 5.51% one year ago.
“Buyers seem to be adjusting more quickly to the reality of higher mortgage payments than sellers, making that home purchase if it is affordable,” MIAMI REALTORS® Chief Economist Gay Cororaton said. “Buyers continue to compete for the limited supply, so we’re seeing a market with prices still buoyed up by demand, modest price discounts, and properties still typically getting sold within a month.”
Palm Beach single-family home sales decreased 3% year-over-year, from 1,472 in June 2022 to 1,428 in June 2023 because of its comparison to a historic month and the current market has lower inventory in specific price points and higher rates.
Palm Beach existing condo sales decreased 3.8% year-over-year, from a historic 1,252 in June 2022 to 1,204 in June 2023, due to lack of inventory and rising mortgage rates.
Palm Beach Home Prices, Household Income Rise with Wealth Migration
Palm Beach County single-family home median prices increased 0.8% year-over-year in June 2023, increasing from $620,000 to $625,000. Existing condo median prices increased 4% year-over-year to $325,000 from $312,500.
Local prices have risen with South Florida’s wealth migration. In-migration boosted South Florida household income by $16 Billion in 2021, according to MIAMI REALTORS® analysis of the 2020-2021 migration data released by the Internal Revenue Service.
New households moving into Miami-Dade in 2021 had an average adjusted gross income of $229,300. New households moving into Broward County had an average adjusted gross income of $102,600. New households moving into Palm Beach County had an average adjusted gross income of $242,200.
Home prices are determined by supply and demand. Lower supply and higher demand create higher prices. Inventory for Palm Beach single-family homes (3 months) and condos (3.6 months) are low. Also, one of the supports for home prices is rents and rents are up.
Palm Beach Inventory, New Listings Still Near All-Time Lows
While inventory is rising, Broward inventory is still near all-time lows. The monthly historical average for Palm Beach inventory is 16,196 and current inventory is at 7,089.
Total active listings at the end of June increased 21.6% year-over-year, from 5,829 to 7,089.
Inventory of single-family homes increased 2.2% year-over-year in June 2023 from 3,421 active listings last year to 3,497 last month. Condominium inventory increased 49.2% year-over-year to 3,592 from 2,408 listings during the same period in 2022.
New listings of Palm Beach single-family homes decreased 32% to 1,555 from 2,286 year-over-year. New listings of condominiums decreased 22%, from 1,707 to 1,331 year-over-year.
Months’ supply of inventory for single-family homes increased 30.4% to 3 months year-over-year, which indicates a seller’s market. Inventory for existing condominiums increased 111.8% to 3.6 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 the end of June was 1.08 million units, identical to May but down 13.6% from one year ago (1.25 million). Unsold inventory sits at a 3.1-month supply at the current sales pace, up from 3.0 months in May and 2.9 months in June 2022.
Palm Beach Real Estate Posts $321 Million Local Economic Impact in June 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 $122,000, according to NAR. Palm Beach sold 2,632 homes in June 2023 and had a local economic impact of $321 million.
Palm Beach total dollar volume totaled $2.1 billion in June 2023. Single-family home dollar volume decreased 12.55% year-over-year to $1.5 billion. Condo dollar volume increased 9.21% year-over-year to $662 million.
Palm Beach Distressed Sales Remain Low, Reflecting Healthy Market
Only 0.6% of all closed residential sales in Palm Beach were distressed last month, including REO (bank-owned properties) and short sales, lower than 0.4% in June 2022.
Short sales and REOs accounted for 0.2% and 0.5% year-over-year, respectively, of total Palm Beach sales in June 2023.
Palm Beach’s percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented 2% of sales in June, virtually unchanged from last month and the prior year.
Palm Beach Median Price Appreciation Outperforming Nation, State
In Florida, closed sales of single-family homes statewide totaled 26,071 in June 2023, down 7.9% year-over-year, while existing condo-townhouse sales totaled 10,494, down 11%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, total existing-home sales transactions receded 3.3% from May to a seasonally adjusted annual rate of 4.16 million in June. Year-over-year, sales fell 18.9% (down from 5.13 million in June 2022).
The statewide median sales price for single-family existing homes was $420,000, even 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 $325,000, even 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 June was $410,200, the second-highest price of all time and down 0.9% from the record-high of $413,800 in June 2022. The monthly median price surpassed $400,000 for the third time, joining June 2022 and May 2022 ($408,600). Prices rose in the Northeast and Midwest but waned in the South and West.
Palm Beach Real Estate Attracting Near List Price
The median percent of original list price received for single-family homes was 95.5% in June 2023, down from 100% last year. The median percent of original list price received for existing condominiums was 95.5%, down from 100% last year.
The median number of days between listing and contract dates for Palm Beach single-family home sales was 26 days, up from 12 days last year. The median time to sale for single-family homes was 73 days, up from 55 days last year.
The median number of days between the listing date and contract date for condos was 26 days, up from 11 days. The median number of days to sale for condos was 71 days, down from 51 days.
Palm Beach Cash Sales Nearly Double National Figure
Cash sales represented 51.4% of Palm Beach closed sales in June 2023, compared to 54.3% in June 2022. About 26% 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 61.4% of all Palm Beach existing condo sales and 42.9% of single-family transactions.
To access June 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 255 international organizations worldwide. MIAMI’s official website is www.miamirealtors.com