Despite the ongoing global pandemic, Palm Beach County total home sales increased year-over-year in 2020, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Palm Beach County registered 31,521 total home sales in 2020, a 2.3% year-over-year increase from 2019.
“The Palm Beach real estate market showcased its resiliency throughout 2020 as it persevered through a global pandemic to post a robust sales year,” JTHS-MIAMI President Bill Mate said. “Pent-up demand, record-low mortgage rates, Florida’s low taxes, low inventory and purchases from home buyers in tax-burdened states, and increased interest from international buyers are all boosting Palm Beach real estate.”
Lack of supply is expected to improve later this year as housing starts increase and sellers become more comfortable listing properties and allowing strangers in their homes once the COVID-19 vaccine is widely distributed.
Palm Beach Single-Family Home Sales Post Strong Numbers
Palm Beach County single-family home sales registered 18,174 transactions in 2020, a 4.3% year-over-year increase from 17,431 in 2019.
Palm Beach Existing Condominiums Top 13,000 Transactions
Palm Beach County existing condominiums decreased a negligible 0.4% year-over-year in 2020, from 13,398 to 13,347.
Palm Beach Luxury Sales Post Major Gains in 2020
Luxury ($1 million-and-up) single-family home sales jumped 48.9% year-over-year to 1,922 transactions in 2020.
Luxury condo transactions increased 31.7% year-over-year to 628 sales in 2020.
Record-low interest rates; a robust S&P 500; the appeal of stable assets in a volatile economy; homebuyers leaving tax-burdened Northeastern states to purchase in Florida (no state income tax); and work-from-home and remote-learning policies have all combined to create a robust market for luxury single-family properties.
Palm Beach Median Prices, Dollar Volume Rise in 2020
Palm Beach existing single-family homes finished 2020 with a median sales price of $389,500, up 9.7% from $354,900 the previous year. The Palm Beach median price for existing condominiums in 2020 was $205,000, an increase of 12.6% from $182,000 in 2019.
Single-family home dollar volume increased 31.4% year-over-year, from $9.4 billion to $12.4 billion. Condo dollar volume increased 8.5%, from $4.1 billion to $4.5 billion.
Hottest Palm Beach County Neighborhoods at Year-End 2020
Months’ supply of inventory, which is an important indicator of consumer demand and market performance, reflects limited supply in many neighborhoods and price ranges. As a result, lack of supply is also impacting property sales, particularly for single-family homes.
Top Palm Beach County neighborhoods with the lowest months of supply of inventory with at least 100 new pending sales at year-end 2020:
Single-Family Homes
1. Royal Palm Beach, a north Palm Beach County village north of Wellington, had 1.0 months supply
2. Greenacres, a north Palm Beach County city east of Wellington, had 1.2 months supply
3. The Acreage, a northwestern Palm Beach County community west of West Palm Beach, had 1.3 months supply
4. North Palm Beach, a north Palm Beach community along the coast south of Juno Beach, had 1.4 months supply
5. Palm Springs, a central Palm Beach community west of Lake Worth, had 1.8 months supply
Condominiums
1. Royal Palm Beach, a north Palm Beach County village north of Wellington, had 2.0 months supply
2. Jupiter, a north Palm Beach County town south of Tequesta, had 2.0 months supply
3. Palm Beach Gardens, a north Palm Beach County city south of Jupiter, had 2.3 months supply
4. Greenacres, a north Palm Beach County city east of Wellington,, had 2.9 months supply
5. Tequesta, a north Palm Beach County village on the Martin-Palm Beach line, had 3.4 months supply
Palm Beach Real Estate Selling Close to List Price
The average percent of original list price received for single-family homes in 2020 was 95.9%, an increase of 1.2% from a year earlier. The median number of days to contract for Palm Beach single-family homes decreased 30.2% to 37 days in 2020 from 53 days in 2019.
The median number of days to contract for condominiums sold in 2020 was 49 days, a decrease of 10.9% from 55 days. The average percent of original list price received was 94.4%, a 0.5% year-over-year increase.
State Year-End Statistics
Statewide closed sales of existing single-family homes totaled 310,378 at the end of 2020, up 5.8% compared to the 2019 figure, according to Florida Realtors. The statewide median sales price for single-family existing homes at year’s end was $290,000, up 9.6% from the previous year.
Looking at Florida’s year-to-year comparison for sales of condo-townhouses, a total of 119,336 units sold statewide in 2020, up 2.5% over 2019. The statewide median price for condo-townhouse properties at the end of the year was $215,000, up 12% from year-end 2019.
The interest rate for a 30-year fixed-rate mortgage averaged 3.11% for 2020, down significantly from the previous year’s average of 3.94%, according to Freddie Mac.
Palm Beach’s Cash Buyers Top the National Figure
In 2020, cash deals represented 40.5% of Palm Beach’s total closed sales, which is a decrease from 42.9% in 2019. About 20% of all U.S. housing sales are made in cash, according to NAR. Palm Beach’s high percentage of cash sales reflects South Florida’s ability to attract a diverse number of international home buyers, who tend to purchase properties in all cash.
Condominiums comprise a large portion of Palm Beach’s cash purchases as 52.7% of condo closings were made in cash in 2020 compared to 31.6% of single-family home sales.
Distressed Property Transactions Continue to Decline in Palm Beach
About 2.2% of all closed residential sales in Palm Beach were distressed in 2020, including REO (bank-owned properties) and short sales, compared to 3.2% in 2019.
Short sales and REOs accounted for 0.4% and 1.8%, respectively, of total Palm Beach sales in 2020. Short sale transactions dropped 38.8% year-over-year while REOs decreased 27.7%. A decline in short sales points to more homeowners with increased equity, which should result in increased market activity.
Seller’s Market for Palm Beach Real Estate
Inventory of single-family homes decreased 42.4% in 2020 from 6,162 active listings in 2019 to 3,551 in 2020. Condominium inventory decreased 12.8% to 5,140 in 2020 from 5,892 listings in 2019.
At the end of 2020, inventory for Palm Beach single-family homes stood at a 2.3-month supply, a 45.2% decrease from 4.2 months in the previous year. Inventory for Palm Beach existing condominiums at the end of 2020 stood at 4.6 months, which is down 13.2% from 5.3 months. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
Total active listings at the end of 2020 decreased 27.9% year-over-year, from 12,054 to 8,691.
New listings of Palm Beach single-family homes at year-end 2020 decreased 4.2% from 23,193 to 22,209. New listings of condominiums increased 2.6%, from 19,207 to 19,706.
Lack of supply is expected to improve later this year as housing starts increase and sellers become more comfortable listing properties and allowing strangers in their homes once the vaccine is widely distributed.
4Q 2020: Palm Beach Single-Family Home, Condo Sales Rise
Palm Beach closed sales of existing single-family homes totaled 5,135 in the fourth quarter of 2020, up 28.9% compared to the previous year. Palm Beach existing condo sales totaled 3,987 in 4Q 2020, up 24.8% year-over-year.
Statewide closed sales of existing single-family homes totaled 86,543 in the fourth quarter of 2020, up 23.6% compared to the year-ago figure, according to Florida Realtors. Looking at Florida’s year-to-year comparison for sales of condo-townhouses, a total of 35,865 units sold statewide in 4Q 2020, up 29.4% compared to the same period a year earlier.
Median sale prices for Palm Beach single-family homes increased 18.9%, from $370,000 to $440,000, in 4Q 2020. Condo median prices increased 10.2% from $245,000 to $270,000.
The national median existing single-family home price in 4Q 2020 rose 14.9% on a year-over-year basis, to $315,900.
The statewide median sales price for existing single-family homes for 4Q 2020 was $306,000, up 14.6% from 4Q 2019. The statewide median price for condo-townhouse properties for the quarter was $226,000, up 15% over the previous year. New pending sales for condo-townhouses for 4Q 2020 increased 30.9% compared to a year ago, while new listings were up 5.9% from the same quarter the previous year.
New listings of Palm Beach single-family homes for sale in 4Q 2020 increased 2% compared to the same quarter the previous year, from 5,160 to 5,265. New listings for existing condos in 4Q 2020 increased 1.5% from 4,775 to 4,849.
To access Year-end 2020, 4Q 2020 and Local Residential Market Metrics Year-end 2020 Palm Beach County Statistical Reports, visit 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 101 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-MIAMI Association of Realtors, the Jupiter Tequesta Hobe Sound (JTHS-MIAMI) Council, the Young Professionals Network (YPN) Council and the award-winning International Council, it represents 52,000 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 223 international organizations worldwide. MIAMI’s official website is www.MiamiRealtors.com
