Palm Beach Market Enjoys $4.2 Billion of Residential Sales in Q2
The Miami Association of Realtors is reporting this week that Palm Beach County single-family home sales and median prices rose in 2Q 2019.
Palm Beach County single-family home sales rose 1.2% year-over-year in 2Q 2019, increasing from 5,216 to 5,276. Condo transactions declined 4.1%, from 4,173 to 4,003.
"Palm Beach real estate continues to see strong demand and low supply in particular price points," JTHS-MIAMI President Kim Price said. "Several Palm Beach County cities are in hot demand with low months' supply of inventory. We expect to see an increased number of buyers from tax burdened states."
Sales volume accounted for $3.0 billion in single-family transactions and $1.2 billion in townhouse and condo sales in 2Q 2019, totaling $4.2 billion in combined sales. Dollar volume decreased 2.7% for single-family homes and decreased 9.8% for condos and townhouses.
Non-distressed sales comprised about 97.3% of all closed residential sales in 2Q 2019 vs. 97.1% in 2Q 2018. Only 2.7% of all closed residential sales in Palm Beach were distressed in 2Q 2019, including REO (bank-owned properties) and short sales, compared to 2.9% in 2Q 2018.
Short sales and REOs accounted for 0.6% and 2.1%, respectively, of total Palm Beach sales in 2Q 2019. Short sale transactions decreased 6.9% year-over-year while REOs fell 8.72%.
Palm Beach Median Prices Rise in 2Q 2019
The median price for single-family homes in Palm Beach increased to $355,000 in 2Q 2019, a 1.4% jump from $350,000 in the same period last year. The median price for existing condominiums increased 2.5% year-over-year from $182,000 to $186,500.
Statewide, median sales price for single-family existing homes in 2Q 2019 was $264,000, up 3.3% from the same time a year ago, according to Florida Realtors. The statewide median price for condo-townhouse properties during the quarter was $195,00, up 2.9% over the year-ago figure.
The national median existing single-family home price in the second quarter was $279,600, up 4.3% from the second quarter of 2018 ($268,000), according to the National Association of Realtors (NAR).
Seller's Market in Palm Beach
At the current sales pace, the number of active listings represents 4.8 months of inventory for single-family homes and 5.1 for condominiums. A balanced market between buyers and sellers offers between six and nine months of supply inventory.
Palm Beach real estate had 12,444 active listings in 2Q 2019, a 2.21% decrease from the 12,725 listings at the same time last year. The inventory for single-family homes decreased 1.5%, from 6,858 to 6,753. Palm Beach existing condo inventory decreased 3.0%, from 5,867 to 5,691.
Hot Markets Overview Reveals Strong Demand and Limited Supply in Many Local Areas
Months' supply of inventory is a strong indicator of real estate activity. Top Palm Beach neighborhoods with the lowest months of supply of inventory in 2Q 2019 (at least 50 transactions):
1. Boynton Beach, a southeastern Palm Beach County city, 2.6 months supply
2. Royal Palm Beach, a northeastern Palm Beach County village, 3.2 months supply
3. Greenacres, a northeastern Palm Beach County city, 3.4 months supply
4. Jupiter Farms, a northeastern Palm Beach County community along the Martin-Palm Beach line, 3.8 months supply
5. The Acreage, a northeastern Palm Beach County community, 3.8 months supply
1. Jupiter, a northeastern Palm Beach County town, 3.0 months supply
2. Royal Palm Beach, a northeastern Palm Beach County village, 3.6 months supply
3. Palm Springs, an east central Palm Beach County village, 3.8 months supply
4. North Palm Beach, a northeastern Palm Beach County village north of Riviera Beach, 4.3 months supply
5. Palm Beach Gardens, a northeastern Palm Beach County city, 4.8 months supply
National, State Home Sales in 2Q 2019
Nationwide existing single-family home sales increased 4.3% to a seasonally adjusted annual rate of 279.6 million in the second quarter, up from 268.0 million in the second quarter of 2018, according to NAR. Condo sales nationwide increased 3.6% to a seasonally adjusted annual rate of 255.04 million in the second quarter.
Closed sales of single-family homes statewide totaled 85,017 in 2Q 2019, up 4.6% from the 2Q 2018 level, according to Florida Realtors. Looking at Florida's condo-townhouse market, statewide closed sales totaled 34,128 during 2Q 2019, down 1.4% compared to 2Q 2018.
Palm Beach Homes Selling Close to List Price
The median percent of original list price received was 94.5% for single-family homes and 93.6% for condos in 2Q 2019.
The median time to contract for single-family home listings was 53 days, a 17.8% increase from 45 days in 2Q 2018. The median time to contract for existing condos was 56 days, a 7.7% increase from 52 days in 2Q 2018.
The median time to sale for single-family homes increased 6.6%, from 91 days to 97 days. The median time to sale for existing condos increased 4.3%, from 93 days to 97 days.
Palm Beach Cash Sales More than Double National Figure
Cash sales represented 43.5% of Palm Beach closed sales in 2Q 2019, compared to 45.5% in 2Q 2018. About 16% of U.S. home properties are made in cash, according to the latest NAR statistics. The high percentage of cash buyers reflects Miami's top position as the preeminent American real estate market for foreign buyers, who tend to purchase with all cash.
Cash sales accounted for 56.9% of all Palm Beach existing condo sales and 33.2% of single-family transactions.