MIAMI — Palm Beach County single-family home sales increased year-over-year, according to January 2024 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Palm Beach single-family home sales increased 2.1% year-over-year in January 2024.
“The allure of this paradise has attracted homebuyers and businesses, particularly from high-density, high-taxed regions such as New York and California, who continue to migrate to the Sunshine State,” JTHS-MIAMI President Courtney Smitheman said. “Remarkably, over half of all home purchases in Palm Beach County are made in cash, a rate that doubles the national average.”
Palm Beach County Single-Family Home Sales Increase
Palm Beach single-family home sales increased 2.1% year-over-year in January 2024, from 794 to 811.
Palm Beach existing condo sales decreased 8.8% year-over-year, from 694 in January 2023 to 633 in January 2024. The condo market has been more impacted by lack of inventory at key price points and elevated mortgage rates.
Total Palm Beach sales decreased 2.9% in January 2024, from 1,488 to 1,444. The statistics don’t include South Florida’s robust developer new construction market and volume.
Total Palm Beach New Listings Rise Again
Palm Beach total new listings increased 17.20% year-over-year in January 2024, from 3,466 to 4,062. 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 12.86% while Palm Beach condo new listings jumped 21.88% year-over-year.
7% Mortgage Rates are Back, but MIAMI Chief Economist Predicts Decline Later this Year
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.77% as of February 15. That’s up from 6.64% the previous week and 6.32% one year ago. Mortgage News Daily’s survey has the 30-year fixed rate at 7.14% on Feb. 21, 2024.
“In recent weeks, mortgage rates have started to rise again as inflation rose more than expected in January,” MIAMI REALTORS® Chief Economist Gay Cororaton said. “The Fed remains cautious at cutting rates. Tate cuts will likely commence in June, so we should see a stronger rebound in the second half.”
Palm Beach Inventory is Still Down 34% From Historical Average
Total inventory is down 34% from the historical average for Palm Beach. The monthly historical average for Broward existing inventory is 16,196 and current inventory is at 10,685.
Total active listings at the end of January increased 32.9% year-over-year, from 8,042 to 10,685.
Inventory of single-family homes increased 16.6% year-over-year in January 2024 from 4,202 active listings last year to 4,900 last month. Condominium inventory increased 50.7% year-over-year from 3,840 to 5,785 listings during the same period in 2023.
Months’ supply of inventory for single-family homes is 4.2 months, which indicates a seller’s market. Inventory for existing condominiums is 5.8 months, which 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 January was 1.01 million units, up 2.0% from December and 3.1% from one year ago (980,000). Unsold inventory sits at a 3.0-month supply at the current sales pace, down from 3.1 months in December but up from 2.9 months in January 2023.
Palm Beach Real Estate Continues to See Rising Home Price Appreciation
Palm Beach County single-family home median prices increased 5.6% year-over-year in January 2024, increasing from $582,500 to $615,000. Existing condo median prices increased 8.7% year-over-year from $299,000 to $325,000.
South Florida’s Incredible Wealth Migration
With elevated levels of out-of-state migration into Southeast Florida and its strong economy that has attracted business expansions and relocations, the share of million-dollar homes to total sales has steadily climbed since 2019. In 2023, the share of million-dollar homes to total single-family sales listed on the MIAMI MLS rose to 17% in 2023 (6% in 2019); for condos/townhomes, the share rose to 9% (5% in 2019).
Migration into Southeast Florida remains strong. In 2023, 153,347 driver licenses were exchanged for a Florida license in the counties of Miami-Dade, Broward, Palm Beach, and Martin, up 8.3% from the level in 2022 (141,621). New York, New Jersey, and California continue to be the market’s top feeder states.
Palm Beach Real Estate Posts $176 Million Local Economic Impact in January 2024
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 1,444 homes in January 2024 for a local economic impact of $176.1 million.
Palm Beach total dollar volume totaled $1.3 billion in January 2024. Single-family home dollar volume increased 10.24% year-over-year to $952 million. Condo dollar volume increased 3% year-over-year to $333 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 January 2023.
Short sales and REOs accounted for 0.1% and 0.6% year-over-year, respectively, of total Palm Beach sales in January 2024.
Palm Beach’s percentage of distressed sales are lower than the national figure. Nationally, distressed sales represented 2% of sales in January 2024, 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 14,851 in January 2024, up 0.6% year-over-year, while existing condo-townhouse sales totaled 6,008, down 1.2%. 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 – elevated 3.1% from December to a seasonally adjusted annual rate of 4.00 million in January. Year-over-year, sales slipped 1.7% (down from 4.07 million in January 2023).
The statewide median sales price for single-family existing homes was $405,000, 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 $320,000, up 3.2% 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 all housing types in January was $379,100, an increase of 5.1% from one year ago ($360,800). 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 94.4% in January 2024. 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 38 days, down from 41 days last year. The median time to sale for single-family homes was 82 days, down from 85 days last year.
The median number of days between the listing date and contract date for condos was 35 days, up from 30 days. The median number of days to sale for condos was 78 days, up from 73 days.
Palm Beach Cash Sales Nearly Double National Figure
Cash sales represented 55.7% of Palm Beach County closed sales in January 2024, compared to 55.9% in January 2023. About 32% 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 63.9% of all Palm Beach existing condo sales and 49.3% of single-family transactions.
To access January 2024 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
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