MIAMI — Palm Beach County $1-million-and-up home sales jumped double digits year-over-year, according to December 2023 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Palm Beach County total $1-million-and-up home sales rose 13.9% year-over-year in December 2023, from 229 to 261.
“Palm Beach luxury real estate ranks among one of the strongest and most high-demand markets in the U.S.,” JTHS-MIAMI President Courtney Smitheman. “Homebuyers and businesses from high-density, high-taxed markets such as New York and California continuing migrating to South Florida and more than half of all Palm Beach home purchases are made in cash, double the national figure.”
Palm Beach Condo $1-Million-and-Up Transactions Rise
Palm Beach County total $1-million-and-up home sales rose 13.9% year-over-year in December 2023, from 229 to 261. Condo $1-million-and-up transactions rose 30.19% while single-family increased 9.09% year-over-year.
Total Palm Beach sales decreased 3.3% in December 2023, from 1,830 to 1,770, due to elevated mortgage rates and low inventory in key price points. The statistics don’t include South Florida’s robust developer new construction market and volume.
Palm Beach single-family home sales decreased 3% year-over-year, from 831 to 801. Palm Beach existing condo sales decreased 3.61% year-over-year, from 831 in December 2022 to 801 in December 2023. The condo market has been more impacted by lack of inventory at key price points and elevated mortgage rates.
Total Palm Beach New Listings Increase Again
Palm Beach total new listings increased 12.57% year-over-year in December 2023, from 2,300 to 2,589. 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 16.08% while Palm Beach condo new listings jumped 9.7% year-over-year.
Mortgage Rates at Near Lowest Levels Since May 2023
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.60% as of January 18. That’s down from 6.66% the prior week but up from 6.15% one year ago.
“Falling interest rates and the buildup in supply in the last quarter of 2023 set the stage for a sales rebound in 2024,” MIAMI REALTORS® Chief Economist Gay Cororaton said. “Mortgage rates could fall to as low as 5.25% by the end of December 2024 if the Fed goes through its planned rate cuts of 0.75%. Inflation is on the wane, so I am putting a high probability that the Fed will cut rates, although the cuts will likely come in the second half of the year when inflation is nearer the 2% target.”
Palm Beach Inventory is Still Down 41.3% From Historical Average
Total inventory is down 41.3% from the historical average for Palm Beach. The monthly historical average for Palm Beach existing inventory is 16,196 and current inventory is at 9,515.
Total active listings at the end of December increased 26.1% year-over-year, from 7,545 to 9,515.
Inventory of single-family homes increased 13.19% year-over-year in December 2023 from 4,042 active listings last year to 4,575 last month. Condominium inventory increased 41.02% year-over-year from 3,503 to 4,940 listings during the same period in 2022.
Months’ supply of inventory for single-family homes is 4.0 months, which indicates a seller’s market. Inventory for existing condominiums is 4.9 months, which indicates a balanced market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Nationally, total housing inventory registered at the end of December was 1 million units, down 11.5% from November but up 4.2% from one year ago (960,000). Unsold inventory sits at a 3.2-month supply at the current sales pace, down from 3.5 months in November but up from 2.9 months in December 2022.
Palm Beach County Home Prices Rise Again
Palm Beach County single-family home median prices increased 6.42% year-over-year in December 2023, increasing from $545,000 to $580,000. Existing condo median prices increased 1.67% year-over-year from $300,000 to $305,000.
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 $215 Million Local Economic Impact in December 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 1,770 homes in December 2023 for a local economic impact of $215.9 million.
Palm Beach total dollar volume totaled $1.3 billion in December 2023. Single-family home dollar volume increased 9.35% year-over-year to $901 million. Condo dollar volume increased 2.04% year-over-year to $407 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 0.5% in December 2022.
Short sales and REOs accounted for 0.1% and 0.6% year-over-year, respectively, of total Palm Beach sales in December 2023.
Palm Beach’s percentage of distressed sales are lower than the national figure. Nationally, distressed sales represented 2% of sales in December 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 18,423 in December 2023, down 3.8% year-over-year, while existing condo-townhouse sales totaled 7,202, down 6.2%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, total existing-home sales completed transactions that include single-family homes, townhomes, condominiums and co-ops – decreased 1.0% from November to a seasonally adjusted annual rate of 3.78 million in December. Year-over-year, sales declined 6.2% (down from 4.03 million in December 2022).
The statewide median sales price for single-family existing homes was $410,000, up 3.8% 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 $330,000, up 6.5% 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 December was $382,600, an increase of 4.4% from December 2022 ($366,500). 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 95.2% in December 2023. The median percent of original list price received for existing condominiums was 94.3%.
The median number of days between listing and contract dates for Palm Beach single-family home sales was 29 days, down from 36 days last year. The median time to sale for single-family homes was 68 days, down from 77 days last year.
The median number of days between the listing date and contract date for condos was 31 days, up from 27 days. The median number of days to sale for condos was 70 days, up from 67 days.
Palm Beach Cash Sales Nearly Double the National Figure
Cash sales represented 53.7% of Palm Beach closed sales in December 2023, compared to 51.3% in December 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 63.2% of all Palm Beach existing condo sales and 45.8% of single-family transactions.
To access December 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 104 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
###
