MIAMI — Palm Beach County total home sales and existing condo transactions increased year-over-year, according to August 2023 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Palm Beach total home sales increased 0.2% year-over-year, from 2,310 to 2,315. Palm Beach existing condo sales increased 4.7% year-over-year in August 2023, from 1,018 to 1,066 transactions.
“With its high percentage of cash buyers, the South Florida real estate market is more insulated versus other markets in regard to today’s elevated mortgage rates,” JTHS-MIAMI President Martha Gillespie-Beeman said. “A closer look at Palm Beach County condo sales last month shows cash transactions on those properties increase year-over-year.”
South Florida Showing Appointments Increase for the Fourth Consecutive Month
Palm Beach remains in a high-demand, low-supply market with showing appointments surging and new listings declining.
South Florida showing appointments increased for the fourth consecutive month, jumping 2% year-over-year, from 215,662 in August 2022 to 219,484 in August 2023.
Palm Beach total home sales increased 0.2% year-over-year in August 2023, from 2,310 transactions in August 2022 to 2,315 in August 2023.
Palm Beach single-family home sales decreased 3.3% year-over-year, from 1,292 in August 2022 to 1,249 in August 2023. Palm Beach existing condo sales increased 4.7% year-over-year, from 1,018 in August 2022 to 1,066 in August 2023.
Home sales are sensitive to mortgage rate changes. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 7.18% as of September 14. That’s up from 7.12% the prior week and 6.02% one year ago.
“Buyers seem to be realizing that home prices aren’t coming down and are more mentally prepared to make an offer on a home that meets their financial condition and needs,” MIAMI REALTORS® Chief Economist Gay Cororaton said.
Miami Region Leads the Nation in New Apartments Under Construction
With existing inventory near all-time lows, the Miami region would have more total sales if it had more supply and the market could start to realize that as early as next year.
According to LoopNet, Miami leads the nation in new apartments under construction as a share of total inventory. Most of the new units are expected to open in 2024. Most of the new apartments are in Downtown Miami, where many new-to-market FinTech companies have relocated. The new apartments will be in new 4-and-5-star buildings.
The monthly historical average for Palm Beach existing inventory (this doesn’t include new construction) is 16,196 and current inventory is at 6,953. Total inventory is down 39.8% from pre-pandemic (August 2019), from 11,546 to 6,953
Total active listings at the end of August increased 4.8% year-over-year, from 6,633 to 6,953.
Inventory of single-family homes decreased 11.9% year-over-year in August 2023 from 3,865 active listings last year to 3,405 last month. Condominium inventory increased 28.2% year-over-year from 2,768 listings to 3,548 during the same period in 2022.
New listings of Palm Beach single-family homes decreased 13.3% from 1,709 to 1,481 year-over-year. New listings of condominiums decreased 0.2%, from 1,376 to 1,373 year-over-year.
Months’ supply of inventory for single-family homes is 2.9 months, which indicates a seller’s market. Inventory for existing condominiums is 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 registered at the end of August was 1.1 million units, down 0.9% from July and 14.1% from one year ago (1.28 million). Unsold inventory sits at a 3.3-month supply at the current sales pace, identical to July and up from 3.2 months in August 2022.
Palm Beach Home Prices, Household Income Rise with Wealth Migration
Palm Beach County single-family home median prices increased 7.1% year-over-year in August 2023, increasing from $565,000 to $605,000. Existing condo median prices increased 4.8% year-over-year from $291,000 to $305,000.
Historically, a market with less than 6 months of supply will have appreciating prices. Palm Beach single-family homes and existing condos are at 2.9 and 3.6 months, respectively.
Local home 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.
Palm Beach Real Estate Posts $282 Million Local Economic Impact in August 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 2,315 homes in August 2023 for a local economic impact of $282 million.
Palm Beach total dollar volume totaled $1.6 billion in August 2023. Single-family home dollar volume decreased 1.9% year-over-year to $1.1 billion. Condo dollar volume increased 14.50% year-over-year to $476 million.
Palm Beach Distressed Sales Remain Low, Reflecting Healthy Market
Only 0.7% of all closed residential sales in Palm Beach were distressed last month, including REO (bank-owned properties) and short sales, lower than 0.6% in August 2022.
Short sales and REOs accounted for 0.1% and 0.6% year-over-year, respectively, of total Palm Beach sales in August 2023.
Palm Beach’s percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented 1% of sales in August 2023, 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 22,917 in August 2023, down 7.9% year-over-year, while existing condo-townhouse sales totaled 9,279, down 7.2%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, total existing-home sales transactions slid 0.7% from July to a seasonally adjusted annual rate of 4.04 million in August. Year-over-year, sales fell 15.3% (down from 4.77 million in August 2022).
The statewide median sales price for single-family existing homes was $415,000, up 2% 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 $324,000, up 6.2% 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 August was $407,100, an increase of 3.9% from August 2022 ($391,700). All four U.S. regions posted price increases.
Palm Beach Real Estate Attracting Near List Price
The median percent of original list price received for single-family homes was 95.9% in August 2023. The median percent of original list price received for existing condominiums was 95.6%.
The median number of days between listing and contract dates for Palm Beach single-family home sales was 24 days, up from 18 days last year. The median time to sale for single-family homes was 70 days, up from 58 days last year.
The median number of days between the listing date and contract date for condos was 28 days, up from 17 days. The median number of days to sale for condos was 71 days, down from 56 days.
Palm Beach Cash Sales 81.1% More than National Figure
Cash sales represented 48.9% of Palm Beach closed sales in August 2023, compared to 48.2% in August 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 56.1% of all Palm Beach existing condo sales and 42.8% of single-family transactions.
To access August 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 256 international organizations worldwide. MIAMI’s official website is www.MiamiRealtors.com