Greater Palm Beach County Home Sales Down 30 Percent Annually in February

Greater Palm Beach County Home Sales Down 30 Percent Annually in February

Residential News » Palm Beach Edition | By Michael Gerrity | March 22, 2023 8:17 AM ET

The Miami Association of Realtors reported this week that greater Palm Beach County total residential sales for February 2023 decreased 29.9% year-over-year, from 2,558 to 1,794. Palm Beach existing condo sales decreased 38% year-over-year, from 1,321 in February 2022 to 819 in February 2023. Single-family home sales decreased 21.2% year-over-year, from 1,237 in February 2022 to 975 in February 2023 because of its comparison to a historic February 2022 and the current market has lower inventory in specific price points and higher rates.

"Palm Beach County is slowly coming off all-time inventory lows," JTHS-MIAMI President Martha Gillespie-Beeman said. "The Palm Beach single-family market and condo market remains in a seller's market with just 3.3 months and 3.7 months of supply, respectively. If the Palm Beach market had more inventory, we would have more sales because the demand from out-of-state buyers from high-tax, high-density states remains high."

Palm Beach Active Listings Still Near Historical Lows; More Supply Needed

Total active listings at the end of February 2023 increased 144.6% year-over-year, from 3,271 to 8,000.

Inventory of single-family homes increased 126.6% year-over-year in February 2023 from 1,777 active listings last year to 4,027 last month. Condominium inventory increased 165.9% year-over-year to 3,973 from 21,494 listings during the same period in 2022.

New listings of Palm Beach single-family homes decreased 11.2% to 1,484 from 1,671 year-over-year. New listings of condominiums decreased 1.1%, from 1,588 to 1,571 year-over-year.

Months' supply of inventory for single-family homes increased 200% to 3.3 months year-over-year, which indicates a seller's market. Inventory for existing condominiums increased 270% to 3.7 months, which also indicates a seller's market. A balanced market between buyers and sellers offers between six- and nine-months supply.

Nationally, total housing inventory at the end of February was 980,000 units, identical to January and up 15.3% from one year ago (850,000). Unsold inventory sits at a 2.6-month supply at the current sales pace, down 10.3% from January but up from 1.7 months in February 2022.

Palm Beach Distressed Sales Remain Low

Only 0.8% of all closed residential sales in Palm Beach were distressed last month, including REO (bank-owned properties) and short sales, compared to 0.7% in February 2022.

Short sales and REOs accounted for 0.1% and 0.7% year-over-year, respectively, of total Palm Beach sales in February 2023.

Palm Beach's percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented approximately 2% of sales in February, nearly identical to last month and one year ago.

Palm Beach Real Estate Attracting Near List Price

The median percent of original list price received for single-family homes was 93.8% in February 2023, down from 100% last year. The median percent of original list price received for existing condominiums was 94.7%, down from 99.5% last year.

The median number of days between listing and contract dates for Palm Beach single-family home sales was 39 days, up from 13 days last year. The median time to sale for single-family homes was 81 days, up from 55 days last year.

The median number of days between the listing date and contract date for condos was 36 days, up from 13 days. The median number of days to sale for condos was 73 days, up from 53 days.

Palm Beach Cash Sales Nearly Double the National Figure

Cash sales represented 53.4% of Palm Beach closed sales in February 2023, compared to 55.4% in February 2022. About 28% 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 61% of all Palm Beach existing condo sales and 46.9% of single-family transactions.

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