"With high taxes and regulation in places like New York, New Jersey and Connecticut, more northern home buyers are moving to South Florida, where there is no state income tax and it’s cheaper to buy and maintain a home"
MIAMI (PRWEB) February 12, 2020
Palm Beach County median sale prices increased year-over-year in 2019, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Palm Beach County single-family home median prices increased 2.9% year-over-year, from $345,000 in 2018 to $354,900 in 2019. Palm Beach condo median prices increased 2.2%, from $178,000 to $182,000.
“With high taxes and regulation in places like New York, New Jersey and Connecticut, more northern home buyers are moving to South Florida, where there is no state income tax and it’s cheaper to buy and maintain a home,” JTHS-MIAMI President David Abernathy said.
Palm Beach County Single-Family Home Sales Stay About Even in 2019
Palm Beach County single-family home sales stayed about even in 2019, with 17,421 transactions in 2019 compared to 17,419 in 2018.
Palm Beach County condo sales decreased 3.4% in 2019, from 13,866 to 13,398.
Palm Beach total home sales decreased 1.5%, from 31,285 to 30,819.
Lack of supply in certain price ranges and neighborhoods and higher interest rates impacted sales. Decreasing rates are expected to boost sales in coming months.
Condo Dollar Volume Rises in 2019
Palm Beach County condo dollar volume increased 6% in 2019, from $3.9 billion to $4.1 billion.
Palm Beach single-family home dollar volume decreased 1.4%, from $9.6 billion from $9.4 billion.
Hottest Palm Beach Neighborhoods at Year-End 2019
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 neighborhoods with the lowest months of supply of inventory with significant closed sales activity at year-end 2019:
1. Lake Clarke Shores, a Palm Beach community west of Palm Beach and north of Lake Worth, had 1.7 months supply
2. Palm Springs, a central Palm Beach village west of Lake Worth, had 2.4 months supply
3. Greenacres, a Palm Beach city east of Wellington, had 2.6 months supply
4. Royal Palm Beach, a north Palm Beach village north of Wellington, had 2.8 months supply
5. Jupiter, a north Palm Beach city near the Martin County line, had 3.0 months supply
1. Greenacres, a Palm Beach city east of Wellington, had 2.5 months supply
2. Royal Palm Beach, a north Palm Beach village north of Wellington, had 2.6 months supply
3. Tequesta, a north Palm Beach village that sits on the Martin County line, had 3.2 months supply
4. Jupiter, a north Palm Beach city near the Martin County line, had 3.4 months supply
5. Palm Springs, a central Palm Beach village west of Lake Worth, had 3.7 months supply
Palm Beach Real Estate Selling Close to List Price
The average % of original list price received for single-family homes in 2019 was 94.8 % in 2019, equal to 2018. The median number of days to contract for Palm Beach single-family homes increased 8.2% to 53 days in 2019 from 49 days in 2018.
The median number of days to contract for condominiums sold in 2019 was 55 days, up 7.8% from 51 days in 2018. The average percentage of original list price received was 93.9%, a 0.1% year-over-year decrease.
State Year-End Statistics
Statewide closed sales of existing single-family homes totaled 294,120 at the end of 2019, up 5.9% compared to the 2018 figure, according to Florida Realtors. The statewide median sales price for single-family existing homes at year’s end was $264,000, up 3.7% from the previous year.
Looking at Florida’s year-to-year comparison for sales of condo-townhouses, a total of 115,659 units sold statewide in 2019, down slightly (0.8%) from 2018. The statewide median price for condo-townhouse properties at the end of the year was $192,000, up 3.8% from year-end 2018.
The interest rate for a 30-year fixed-rate mortgage averaged 3.94% for 2019, down significantly from the previous year’s average of 4.54%, according to Freddie Mac.
Palm Beach Cash Buyers Represent More than Double the National Figure
In 2019, cash deals represented 42.9% of Palm Beach’s total closed sales, which is a decrease from 45.4% in 2018. About 20 % of all U.S. housing sales are made in cash, according to NAR.
Broward’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 Palm Beach’s cash purchases as 56.3% of condo closings were made in cash in 2019 compared to 32.6% of single-family home sales.
Distressed Property Transactions Continue to Decline in Palm Beach
About 3.2% of all closed residential sales in Palm Beach were distressed in 2019, including REO (bank-owned properties) and short sales, compared to 3.3% in 2018.
Short sales and REOs accounted for 0.6% and 2.6%, respectively, of Palm Beach sales in 2019.
Short sale transactions dropped 9.6% year-over-year while REOs decreased 3.7%. 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 16.1% in 2019 from 7,347 active listings in 2018 to 6,163 in 2019. Condominium inventory decreased 5.2% to 5,891 in 2019 from 6,215 listings in 2018.
At the end of 2019, inventory for Palm Beach single-family homes stood at a 4.2-month supply, a 17.6% decrease from 5.1 months in the previous year. Inventory for Palm Beach existing condominiums at the end of 2019 stood at 5.3 months, down 1.9% from 5.4 in 2018. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
Total active listings at the end of 2019 increased 11.1% year-over-year, from 13,562 to 12,054. Active listings remain about 60% below 2008 levels when sales bottomed.
New listings of Palm Beach single-family homes at year-end 2019 decreased 4.7% from 24,334 to 23,194. New listings of condominiums decreased 3.7%, from 19,953 to 19,206.
4Q 2019: Palm Beach Single-Family Home, Condo Sales Rise
Palm Beach closed sales of existing single-family homes totaled 3,983 in the fourth quarter of 2019, up 2.7% compared to the previous year. Palm Beach existing condo sales totaled 3,195 in 4Q 2019, up 4.1% year-over-year.
Statewide closed sales of existing single-family homes totaled 70,839 in the fourth quarter of 2019, up 11.6% 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 26,932 units sold statewide in 4Q 2019, up 3.3% compared to the same period a year earlier.
Median sale prices for Miami single-family homes increased 4.2%, from $355,000 to $370,000, in 4Q 2019. Condo median prices increased 4.9% from $230,500 to $245,000.
The statewide median sales price for existing single-family homes for 4Q 2019 was $265,900, up 4.3% from 4Q 2018. New pending sales for existing single-family homes for the quarter rose 13.2% compared to a year ago while pending inventory was up 8.7% from 4Q 2018. The statewide median price for condo-townhouse properties for the quarter was $195,000, up 5.9% over the previous year. New pending sales for condo-townhouses for 4Q 2019 increased 6.8% compared to a year ago while pending inventory was up 4% from the same quarter the previous year.
The national median existing single-family home price in the fourth quarter was $274,900, up 6.6% from the fourth quarter of 2018 ($258,000).
New listings of Palm Beach single-family homes for sale in 4Q 2019 decreased 6.6% compared to the same quarter the previous year, from 5,523 to 5,161. New listings for existing condos in 4Q 2019 increased 1.9% from 4,687 to 4,774.
To access Year-end 2019, 4Q 2019 and Local Residential Market Metrics Year-end 2019 Palm Beach County Statistical Reports, visit http://www.miamirealtors.com/news/south-florida-market-intelligence
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 100 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 222 international organizations worldwide. MIAMI’s official website is http://www.MiamiRealtors.com