Total Palm Beach County home sales increased 17.1 percent year-over-year in October as median prices and dollar volume rose for all properties, according to a new report by the MIAMI Association of REALTORS® (MIAMI) and the Multiple Listing Service (MLS) system.
Palm Beach existing condo sales once again fueled the overall home sales increase, jumping 19.2 percent from 901 transactions in October 2017 to 1,074 in October 2018. Condo sales have now increased year-over-year in 11 of the last 12 months. Year-to-date, Palm Beach condo sales are now 7.3 percent higher than 2017 with 11,870 transactions through the first 10 months of 2018.
“Palm Beach real estate posted another robust month of sales,” said JTHS-MIAMI President Barb Fox, a Palm Beach Realtor. “Palm Beach condo sales, particularly at the entry-level price point of $250,000 and below, are in high demand and have seen sales growth in 11 of the last 12 months. Palm Beach single-family home luxury sales also continue to shine, posting 60.9 percent more sales year-over-year.”
Entry-Level Priced Condo Sales Accounted for 65 percent of all Palm Beach Condo Sales
The entry-level market (condos priced from $50,000 to $250,000) comprised the bulk (65 percent) of Palm Beach condo sales in October 2018. The Palm Beach market sold 702 condos priced from $50,000 to $250,000, a significant increase from October 2017.
Palm Beach Single-Family Luxury Sales Post 60.9 Percent Growth
Palm Beach single-family home sales increased 15.6 percent in October 2018, increasing from 1,261 to 1,458. The bulk of the sales happen in the $250,000 to $1 million and above price range, which saw 999 home sales.
The Palm Beach single-family luxury bracket ($1 million and above) posted 60.9 percent year-over-year growth with 111 transactions in October 2018.
Sales Dollar Volume Jumps 43.2 Percent to $1.1 Billion
Total sales volume increased to $1.1 billion from $768 million in October 2018. Existing condo sales volume increased from $201.1 million to $285 million (an increase of 41.7 percent). Single-family home total dollar volume rose 40.2 percent, from $566.9 million to $794.6 million.
Palm Beach Median Prices Continue Rising
Palm Beach County single-family home prices increased 6.8 percent in October 2018, increasing from $325,000 to $347,250. Existing condo prices rose 9.5 percent, from $169,000 to $185,000 in October.
Low mortgage rates make purchasing a home more affordable. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased to 4.83 percent in October from 4.63 percent in September. The average commitment rate for all of 2017 was 3.99 percent.
Palm Beach Distressed Sales Continue to Drop, Reflecting Healthy Market
Only 3.1 percent of all closed residential sales in Palm Beach were distressed in October 2018, including REO (bank-owned properties) and short sales, compared 5.2 percent in October 2017.
Total Palm Beach distressed sales decreased 30.1 percent year-over-year, from 113 in October 2017 to 79 in October 2018.
Short sales and REOs accounted for 0.6 and 2.4 percent, respectively, of total Palm Beach sales in October 2018. Short sale transactions dropped 33.3 percent year-over-year while REOs decreased 29.2 percent.
Nationally, distressed sales accounted for 3 percent of sales (lowest since NAR began tracking in October 2008), down from 4 percent a year ago.
Palm Beach Real Estate Selling Close to List Price
The median number of days between listing and contract dates for Palm Beach single-family home sales was 52 days, a 6.1 percent increase from 49 days last year. The median number of days between the listing date and closing date for single-family homes was 93 days, a 5.1 percent decrease from 98 days.
The median time to contract for condos was 52 days, a 5.5 percent increase from 55 days last year. The median number of days between listing date and closing date stayed the same at 95 days.
The median percent of original list price received for single-family homes was 94.7 percent. The median percent of original list price received for existing condominiums was 94.4 percent.
National and State Statistics
Nationally, total existing-home sales increased 1.4 percent from September to a seasonally adjusted rate of 5.22 million in October. Sales are now down 5.1 percent from a year ago (5.5 million in October 2017).
Statewide closed sales of existing single-family homes totaled 22,272 last month, up 8.5 percent compared to October 2017, according to Florida Realtors. Statewide closed condo sales totaled 9,270 last month, up 14.1 percent compared to a year ago.
The national median existing-home price for all housing types in October was $255,400, up 3.8 percent from October 2017 ($246,000). October’s price increase marks the 80th straight month of year-over-year gains.
October marked 82 consecutive months (more than six and a half years) that statewide median sales prices for both single-family homes and condo-townhouse properties increased year-over-year. The statewide median sales price for single-family existing homes was $253,853, up 7.6 percent from the previous year, according to Florida Realtors. The statewide median price for condo-townhouse units in October was $180,000, up 5.9 percent over the year-ago figure.
Palm Beach Cash Buyers Represent Double the National Figure
Palm Beach cash transactions comprised 43.9 percent of October 2018 total closed sales, compared to 41.7 percent last year. Palm Beach cash transactions are double the national figure (23 percent).
Condominiums comprise a large portion of Palm Beach’s cash purchases as 55.9 percent of condo closings were made in cash in October compared to 34.9 percent of single-family home sales.
Seller’s Market for Palm Beach Real Estate
Inventory of single-family homes increased 2.3 percent in October from 6,948 active listings last year to 7,108 in October 2018. Condominium inventory increased 0.1 percent to 6,022 from 6,016 listings during the same period in 2017.
Monthly supply of inventory for single-family homes stayed the same year-over-year at 4.8 months, which indicates a seller’s market. Existing condominiums have a 5.2-month supply, which indicates a seller’s market. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
Total active listings at the end of October increased 1.3 percent year-over-year, from 12,964 to 13,130.
New listings of Palm Beach single-family homes increased 1.3 percent to 2,124 from 2,096. New listings of condominiums decreased 0.4 percent, from 1,820 to 1,812.
Nationally, total housing inventory at the end of October decreased from 1.88 million in September to 1.85 million existing homes available for sale, but that represents an increase from 1.80 million a year ago. Unsold inventory is at a 4.3-month supply at the current sales pace, down from 4.4 last month and up from 3.9 months a year ago.
To access October 2018 Palm Beach County 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® was chartered by the National Association of Realtors in 1920 and is celebrating 98 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of six organizations, the Residential Association, the Realtors Commercial Alliance, the Broward Council, the Jupiter Tequesta Hobe Sound (JTHS-MIAMI) Council, the Young Professionals Network (YPN) Council and the award-winning International Council, it represents more than 46,000 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 189 international organizations worldwide. MIAMI’s official website is http://www.MiamiRealtors.com
