Residential News » Palm Beach Edition | By Michael Gerrity | December 2, 2022 8:00 AM ET
According to the Miami Association of Realtors, total residential sales compared to October 2021, Palm Beach County area October 2022 transactions decreased 31.4% year-over-year, from 2,809 to 1,927, because of rising mortgage rates and low inventory.
Palm Beach single-family home sales decreased 28.7%, from 1,471 to 1,049. Palm Beach condo transactions declined 34.4%, from 1,338 to 878.
Palm Beach County single-family home median prices increased 14% year-over-year in October 2022, increasing from $500,000 to $570,000. Existing condo median prices increased 22.4% year-over-year, from $237,000 to $290,000.
While median prices have increased nationally so has house-buying power because of a long-run decline in rates before March 2022 and the slow, but steady growth of household income. West Palm Beach (No. 5) and Miami (No. 6) ranked among the Top-10 U.S. metros where homebuyer income grew the most during the pandemic via Redfin report.
Palm Beach Total Active Listings Increase for Fourth Consecutive Month
Total active listings at the end of October 2022 increased 78% year-over-year, from 4,129 to 7,351.
Inventory of single-family homes increased 93.8% year-over-year in October 2022 from 2,212 active listings last year to 4,286 last month. Condominium inventory increased 59.9% year-over-year to 3,065 from 1,917 listings during the same period in 2021.
New listings of Palm Beach single-family homes decreased 6.9% to 1,577 from 1,694. New listings of condominiums decreased 12.3%, from 1,509 to 1,323.
Months' supply of inventory for single-family homes increased 146.2% to 3.2 months year-over-year, which indicates a seller's market. Inventory for existing condominiums increased 92.3% to 2.5 months, which also indicates a seller's market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Palm Beach Distressed Sales Remain Low, Reflecting Healthy Market
Total Palm Beach distressed sales decreased 34.6% in October 2022, from 26 to 17. Short sales and REOs accounted for 0.2% and 0.7% year-over-year, respectively, of total Palm Beach sales in October 2022. Short sale transactions decreased 57.1% year-over-year while REOs decreased 26.3%.
Only 0.9% of all closed residential sales in Palm Beach were distressed last month, including REO (bank-owned properties) and short sales, compared to 0.9% in October 2021.
Palm Beach's percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented approximately 1% of sales in October, identical to October 2021.
Palm Beach Cash Sales Nearly Double National Figure in October 2022
Cash sales represented 48.6% of Palm Beach closed sales in October 2022, compared to 48.2% in October 2021. About 26% 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 57.9% of all Palm Beach existing condo sales and 40.8% of single-family transactions.