The Average Home Sale on Palm Beach Island Hits $20 million in 2023

The Average Home Sale on Palm Beach Island Hits $20 million in 2023

Residential News » Palm Beach Edition | By Michael Gerrity | October 24, 2023 8:45 AM ET

Greater Palm Beach Area Home Prices Continue to Rise as Sales Slip in September

Based on new data by the Miami Association of Realtors, Palm Beach County total home sales decreased 3.8% year-over-year in September 2023, from 2,109 transactions in September 2022 to 2,028 in September 2023. This did not include developer new construction sales.

Palm Beach single-family home sales decreased 5.8% year-over-year in September 2023, from 1,170 to 1,102 transactions. Palm Beach existing condo sales decreased 1.4% year-over-year, from 939 in September 2022 to 926 in September 2023.

The monthly historical average for Palm Beach existing inventory (this doesn't include new construction) is 16,196 and current inventory is at 7,528. Total inventory is down 34.5% from pre-pandemic (September 2019), from 11,501 to 7,528.

Total active listings at the end of September increased 10.9% year-over-year, from 6,783 to 7,528.

Inventory of single-family homes decreased 5.3% year-over-year in September 2023 from 3,977 active listings last year to 3,765 last month. Condominium inventory increased 34.1% year-over-year from 2,806 to 3,763 listings during the same period in 2022.

New listings of Palm Beach single-family homes increased 8.3% from 1,562 to 1,692 year-over-year. New listings of condominiums increased 16.8%, from 1,184 to 1,383 year-over-year.

The monthly supply of inventory for single-family homes is 3.3 months, which indicates a seller's market. Inventory for existing condominiums is 3.8 months, which also indicates a seller's market. A balanced market between buyers and sellers offers between six- and nine-months supply.

Palm Beach County single-family home median prices increased 3.4% year-over-year in September 2023, increasing from $580,000 to $600,000. Existing condo median prices increased 6.9% year-over-year from $290,000 to $309,900.

Palm Beach Island itself enjoyed significant home price increases in 2023. The average sale price of a home in Palm Beach Island topped $20 million in the third quarter of 2023, making it the most expensive housing market in the country. The average price per square foot of homes sold in Palm Beach reached $4,554, more than 250% more than Manhattan prices.

Historically, a market with less than 6 months of supply will have appreciating prices. Palm Beach single-family homes and existing condos are at 3.3 and 3.8 months, respectively.

Palm Beach total dollar volume totaled $1.4 billion in September 2023. Single-family home dollar volume increased 3.7% year-over-year to $1.04 billion. Condo dollar volume increased 16.12% year-over-year to $430 million.

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 0.6% in September 2022.

Short sales and REOs accounted for 0.09% and 0.6% year-over-year, respectively, of total Palm Beach sales in September 2023.

Palm Beach's percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented 1% of sales in September 2023, virtually unchanged from last month and the prior year.

The median percent of original list price received for single-family homes was 96.2% in September 2023. The median percent of original list price received for existing condominiums was 95.2%.

The median number of days between listing and contract dates for Palm Beach single-family home sales was 24 days, up from 22 days last year. The median time to sale for single-family homes was 67 days, even with last year.

The median number of days between the listing date and contract date for condos was 33 days, up from 20 days. The median number of days to sale for condos was 78 days, up from 62 days.

Cash sales represented 51.4% of Palm Beach closed sales in September 2023, compared to 48.5% in September 2022. About 29% of U.S. home sales are made in cash, according to the latest NAR statistics.

Cash sales accounted for 59.8% of all Palm Beach existing condo sales and 44.3% of single-family transactions.

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