MIAMI — Palm Beach County mid-market condo sales priced between $400,000 to $600,000 rose year-over-year, according to September 2023 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Palm Beach County condos priced between $400,000 to $600,000 increased 9% year-over-year in September 2023 to 145 transactions.
“Palm Beach County is home to a robust luxury market, but it also is seeing surging interest in mid-market homes,” JTHS-MIAMI President Martha Gillespie-Beeman said. “Contact a MIAMI REALTOR® as your trusted advisor in your home search.”
South Florida Showing Appointments Increase for the Fifth Consecutive Month
Palm Beach County remains in a high-demand, low-supply market with showing appointments surging.
South Florida showing appointments increased for the fifth consecutive month, increasing 2.6% year-over-year, from 188,887 in September 2022 to 193,711 in September 2023. Showing appointments are a leading indicator for home sales.
Palm Beach County total home sales decreased 3.8% year-over-year in September 2023, from 2,109 transactions in September 2022 to 2,028 in September 2023, because of elevated mortgage rates and lack of supply in certain price points. The statistics don’t include South Florida’s robust developer new construction market and volume.
Palm Beach single-family home sales decreased 5.8% year-over-year in September 2023, from 1,170 to 1,102 transactions. Palm Beach existing condo sales decreased 1.4% year-over-year, from 939 in September 2022 to 926 in September 2023.
Mortgage rates are at their highest levels in 23 years. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 7.57% as of October 12. That’s up from 7.49% the previous week and 6.92% one year ago.
“The housing market is continuing to adjust to rising mortgage rates and is experiencing bifurcated growth,” MIAMI REALTORS® Chief Economist Gay Cororaton said. “Homes at over $600,000 are surging, bolstered by cash and equity-rich buyers, while sales of lower priced homes, usually mortgage-financed, are shrinking. Out of-state movers — mainly from New York, California, or New Jersey—continue to move to Southeast Florida in numbers above the pre- pandemic level.”
Palm Beach Inventory is Still Down 34.5% From Pre-Pandemic
The monthly historical average for Palm Beach existing inventory (this doesn’t include new construction) is 16,196 and current inventory is at 7,528. Total inventory is down 34.5% from pre-pandemic (September 2019), from 11,501 to 7,528.
Total active listings at the end of September increased 10.9% year-over-year, from 6,783 to 7,528.
Inventory of single-family homes decreased 5.3% year-over-year in September 2023 from 3,977 active listings last year to 3,765 last month. Condominium inventory increased 34.1% year-over-year from 2,806 to 3,763 listings during the same period in 2022.
New listings of Palm Beach single-family homes increased 8.3% from 1,562 to 1,692 year-over-year. New listings of condominiums increased 16.8%, from 1,184 to 1,383 year-over-year.
Months’ supply of inventory for single-family homes is 3.3 months, which indicates a seller’s market. Inventory for existing condominiums is 3.8 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 September was 1.13 million units, up 2.7% from August but down 8.1% from one year ago (1.23 million). Unsold inventory sits at a 3.4-month supply at the current sales pace, up from 3.3 months in August and 3.2 months in September 2022.
Palm Beach Home Prices, Household Income Rise with Wealth Migration
Palm Beach County single-family home median prices increased 3.4% year-over-year in September 2023, increasing from $580,000 to $600,000. Existing condo median prices increased 6.9% year-over-year from $290,000 to $309,900.
Historically, a market with less than 6 months of supply will have appreciating prices. Palm Beach single-family homes and existing condos are at 3.3 and 3.8 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 $247 Million Local Economic Impact in September 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 2,028 homes in September 2023 for a local economic impact of $247 million.
Palm Beach total dollar volume totaled $1.4 billion in September 2023. Single-family home dollar volume increased 3.7% year-over-year to $1.04 billion. Condo dollar volume increased 16.12% year-over-year to $430 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 September 2022.
Short sales and REOs accounted for 0.09% and 0.6% year-over-year, respectively, of total Palm Beach sales in September 2023.
Palm Beach’s percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented 1% of sales in September 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 21,335 in September 2023, up 6.1% year-over-year, while existing condo-townhouse sales totaled 8,387, down 0.2%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, total existing-home sales transactions waned 2.0% from August to a seasonally adjusted annual rate of 3.96 million in September. Year-over-year, sales dropped 15.4% (down from 4.68 million in September 2022).
The statewide median sales price for single-family existing homes was $409,243, up 1.3% 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 $324,990, up 5.8% 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 September was $394,300, an increase of 2.8% from September 2022 ($383,500). 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 96.2% in September 2023. The median percent of original list price received for existing condominiums was 95.2%.
The median number of days between listing and contract dates for Palm Beach single-family home sales was 24 days, up from 22 days last year. The median time to sale for single-family homes was 67 days, even with last year.
The median number of days between the listing date and contract date for condos was 33 days, up from 20 days. The median number of days to sale for condos was 78 days, up from 62 days.
Palm Beach Cash Sales 77.2% More than National Figure
Cash sales represented 51.4% of Palm Beach closed sales in September 2023, compared to 48.5% in September 2022. About 29% 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 59.8% of all Palm Beach existing condo sales and 44.3% of single-family transactions.
To access September 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 257 international organizations worldwide. MIAMI’s official website is www.MiamiRealtors.com