MIAMI — Palm Beach County total home sales rose year-over-year as the South Florida real estate market continues to outperform the state and nation, according to November 2023 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Palm Beach County total home sales increased 2.9% year-over-year to 1,695 sales in November 2023. The statistics don’t include South Florida’s robust developer new construction market and volume. November transactions came to terms in October when mortgage rates hit a peak of 7.8%, but Palm Beach buyers primarily used cash as all-cash deals accounted for 54.5% of all transactions, which is double the national figure.
“Palm Beach County real estate continues to be a top destination for individuals relocating from high-tax, high-density states such as California and New York,” JTHS-MIAMI President Martha Gillespie-Beeman said.
Southeast Florida Home Sales Forecasted to Expand by 7% Year-over-Year by End of 2024
MIAMI REALTORS® Chief Economist Gay Cororaton forecasts mortgage rates to fall to 5.25% by the end of 2024 given the overall effect of the Fed’s planned cumulative rate cut of 0.75% and cooling inflation. Mortgage rates hit a 23-year high of 7.8% in October 2023, impacting November 2023 sales numbers across the nation.
“Southeast Florida’s home sales could expand by about 7% year-over-year by the end of 2024 while prices will continue to appreciate at a modest pace of 5%,” Cororaton said. “In the low to mid-price segment of the market, the lower mortgage rates will drive up demand from first-time buyers and renter households. In the high-price and luxury segment, the wealth effect from rising stock prices, a pickup in economic growth in 2024, and sustained migration of high-income households into Southeast Florida will push up demand.”
Palm Beach single-family home sales decreased 0.7% year-over-year, from 920 in November 2022 to 914 in November 2023. Palm Beach single-family home sales still has a lack of inventory in key price points as elevated mortgage rates have impacted buyers looking to finance.
Palm Beach existing condo sales increased 7.6% year-over-year, from 726 in November 2022 to 781 in November 2023.
Total Palm Beach County New Listings Increase
Palm Beach new listings increased 15.48% year-over-year in November 2023, from 2,674 to 3,088. The Palm Beach market remains in a seller’s market but the fresh supply of listings will give buyers more options.
Palm Beach single-family homes new listings increased 12.57% while Palm Beach condo new listings jumped 19.67% year-over-year.
Mortgage Rates at Near Lowest Levels Since May 2023
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.95% as of December 14, falling below 7% for the first time since August 10. That’s down from 7.03% the previous week but up from 6.31% one year ago.
Another leading indicator for sales are showing appointments. South Florida showing appointments declined 1% year-over-year in November 2023 to 157,242 appointments. South Florida showing appointments increased five consecutive months year-over-year before October 2023.
Palm Beach Inventory is Still Down 42.6% From Historical Average
Total inventory is down 42.6% from the historical average for Palm Beach. The monthly historical average for Palm Beach existing inventory is 16,196 and current inventory is at 9,304.
Total active listings at the end of November increased 21.5% year-over-year, from 7,656 to 9,304.
Inventory of single-family homes increased 5.7% year-over-year in November 2023 from 4,322 active listings last year to 4,568 last month. Condominium inventory increased 42.1% year-over-year from 3,334 to 4,756 listings during the same period in 2022.
Months’ supply of inventory for single-family homes is 3.9 months, which indicates a seller’s market. Inventory for existing condominiums is 4.7 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 registered at the end of November was 1.13 million units, down 1.7% from October but up 0.9% from one year ago (1.12 million). Unsold inventory sits at a 3.5-month supply at the current sales pace, down from 3.6 months in October but up from 3.3 months in November 2022.
Palm Beach Home Price Appreciation Continues Trending Up
Palm Beach County single-family home median prices increased 6.2% year-over-year in November 2023, from $565,000 to $600,000. Existing condo median prices increased 6% year-over-year from $291,000 to $308,500.
South Florida’s Incredible Wealth Migration
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 $206 Million Local Economic Impact in November 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 1,695 homes in November 2023 for a local economic impact of $223 million.
Palm Beach total dollar volume totaled $1.2 billion in November 2023. Single-family home dollar volume increased 2.25% year-over-year to $846 million. Condo dollar volume increased 25.92% year-over-year to $394 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, even with 0.6% in November 2022.
Short sales and REOs accounted for 0.05% and 0.6% year-over-year, respectively, of total Palm Beach sales in November 2023.
Palm Beach’s percentage of distressed sales are lower than the national figure. Nationally, distressed sales represented 1% of sales in November 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 17,722 in November 2023, up 4.2% year-over-year, while existing condo-townhouse sales totaled 7,108, up 0.3%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, total existing-home sales transactions elevated 0.8% from October to a seasonally adjusted annual rate of 3.82 million in November. Year-over-year, sales fell 7.3% (down from 4.12 million in November 2022).
The statewide median sales price for single-family existing homes was $413,000, up 3.3% 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 $321,990, 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 all housing types in November was $387,600, an increase of 4.0% from November 2022 ($372,700). 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 95.6% in November 2023. The median percent of original list price received for existing condominiums was 95%.
The median number of days between listing and contract dates for Palm Beach single-family home sales was 24 days, down from 32 days last year. The median time to sale for single-family homes was 64 days, down from 75 days last year.
The median number of days between the listing date and contract date for condos was 34 days, up from 29 days. The median number of days to sale for condos was 73 days, up from 71 days.
Palm Beach Cash Sales More than Double National Figure
Cash sales represented 54.5% of Palm Beach closed sales in November 2023, compared to 52.6% in November 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 63.4% of all Palm Beach existing condo sales and 46.8% of single-family transactions.
To access November 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 260 international organizations worldwide. MIAMI’s official website is www.MiamiRealtors.com
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