“Palm Beach real estate had a strong third quarter as low supply and high demand continues to fuel the market,” JTHS-MIAMI President Barb Fox said.
MIAMI (PRWEB) November 08, 2018
Total Palm Beach County home sales increased 7.4 percent in 3Q 2018 as median prices for all properties rose, according to a new report by the MIAMI Association of REALTORS® (MIAMI) and the Multiple Listing Service (MLS) system.
Total Palm Beach home sales rose 7.4 percent, from 7,218 to 7,749. Palm Beach condo transactions increased 11.1 percent, from 3,072 to 3,412. Palm Beach existing single-family sales increased 4.6 percent, from 4,146 to 4,337. Third quarter statistics include September, which was impacted by stalled sales in 2017 due to Hurricane Irma. While sales have been trending upwards, the percentage is higher than it might have been because of closings delayed by the hurricane last year.
“Palm Beach real estate had a strong third quarter as low supply and high demand continues to fuel the market,” JTHS-MIAMI President Barb Fox said. “Year-to-date, Palm Beach condo sales are up 6.2 percent versus last year at this time. Palm Beach single-family home sales are up 1.3 percent year-to-date.”
$3.1 Billion in Total Palm Beach Sales Volume in 3Q 2018
Total sales volume accounted for $3.1 billion in 3Q 2018, a 14.8 percent increase from the $2.7 billion sales volume a year ago.
Non-distressed sales comprised 97 percent of all closed residential sales in 3Q 2018 vs. 95 percent in 3Q 2017. Only 3.1 percent of all closed residential sales in Palm Beach were distressed in 3Q 2018, including REO (bank-owned properties) and short sales, compared to 4.6 percent in 3Q 2017.
Short sales and REOs accounted for 0.6 and 2.5 percent, respectively, of total Palm Beach sales in 3Q 2018. Short sale transactions decreased 36.6 percent year-over-year while REOs fell 24.2 percent.
Palm Beach Luxury Homes Sales Increase 18.7 Percent
Total luxury home sales ($1 million and above) increased 18.7 percent, from 316 in 3Q 2017 to 375 in 3Q 2018.
Luxury existing single-family home sales fueled the $1-million-and-above transaction surge, increasing 22.1 percent to 287 transactions in 3Q 2018. Condo luxury transactions increased 8.6 percent to 88 transactions in 3Q 2018.
A rise in sales among mid-priced condos also played a key role in 3Q 2018. Palm Beach condo sales in the $200,000 to $600,000 range increased 16.7 percent year-over-year, from 1,081 sales to 1,262.
Low mortgage rates make purchasing a home more affordable. According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.57 percent for 3Q 2018, up from the 3.89 percent recorded during the same quarter a year earlier.
Palm Beach Median Prices Rise in 3Q 2018
The median price for single-family homes in Palm Beach County increased to $345,000 in the third quarter, a 3.3 percent jump from $334,000 in the same period last year. The median price for existing condominiums increased 4.1 percent year-over-year from $172,000 to $179,000.
Statewide, the median sales price for single-family existing homes in 3Q 2018 was $255,000, up 6.3 percent from the same time a year ago, according to Florida Realtors. The statewide median price for condo-townhouse properties during the quarter was $182,500, up 6.1 percent over the year-ago figure.
The national median existing single-family home price in the third quarter was $266,900, up 4.8 percent from the third quarter of 2017 ($254,700), according to the National Association of REALTORS® (NAR).
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 (minimum of 20 pending sales) in 3Q 2018:
1. Boynton Beach, a southern PBC city north of Delray Beach, had 2.9 months supply
2. Greenacres, a west PBC city west of Palm Springs, had 3.0 months supply
3. Royal Palm Beach, a north PBC village north of Wellington, had 3.4 months supply
4. Jupiter, a north PBC town south of the Palm Beach-Martin line, had 3.4 months supply
5. Jupiter Farms, a north PBC community west of Jupiter, had 3.6 months supply
1. Greenacres, a west PBC city west of Palm Springs, had 2.0 months supply
2. Tequesta, a north PBC village that sits on the PB-Martin line, had 2.4 months supply
3. Royal Palm Beach, a north PBC village north of Wellington, had 3.1 months supply
4. Palm Springs, a central PBC village west of West Palm Beach, had 3.3 months supply
5. Palm Beach Gardens, a north PBC city south of Jupiter, had 3.7 months supply
National, State Home Sales in 3Q 2018
Nationwide existing–home sales, including single family and condos, decreased 2.6 percent to a seasonally adjusted annual rate of 5.273 million in the third quarter, down from 5.413 million in the second quarter. That number is 2.4 percent lower than the 5.403 million pace during the third quarter of 2017, according to NAR.
Closed sales of single-family homes statewide totaled 72,843 in 3Q 2018, up 7.5 percent from the 3Q 2017 figure, according to Florida Realtors. Looking at Florida’s condo-townhouse market, statewide totaled 28,894 during 3Q 2018, up 9.5 percent compared to 3Q 2017.
Palm Beach in a Seller’s Market for Single-Family Homes, Condos
At the current sales pace, the number of active listings represents 4.6 months of inventory for single-family homes and 5.0 for condominiums. A balanced market between buyers and sellers offers between six and nine months of supply inventory.
Palm Beach real estate had 12,404 active listings in the third quarter, a 0.4 decrease from the 12,409 listings at the same time last year. The inventory for single-family homes increased 0.3 percent, from 6,707 to 6,726. Palm Beach existing condo inventory decreased 0.4 percent, from 5,702 to 5,678.
Palm Beach Homes Selling Close to List Price
The median percent of original list price received was 94.9 percent for single-family homes and 94.1 percent for condos in 3Q 2018.
The median time to contract for single-family home listings was 48 days, a 11.6 percent increase from 43 days in 3Q 2017. The median time to contract for existing condos was 50 days, a 9.1 percent decrease from 55 days in 3Q 2017.
The median time to sale for single-family homes stayed even at 90 year-over-year. The median time to sale for existing condos decreased 3.1 percent, from 96 to 93.
Palm Beach Cash Sales More than Double National Figure
Cash sales represented 42.7 percent of Broward closed sales in the third quarter of 2018, compared to 43.4 percent in 3Q 2017. About 21 percent of U.S. home properties are made in cash, according to the latest NAR statistics.
Cash sales accounted for 55.4 percent of all Palm Beach existing condo sales and 32.7 percent of single-family transactions.
3Q 2018 Palm Beach Statistical Reports — visit SFMarketIntel.com
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 98 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 Council, the Jupiter Tequesta Hobe Sound (JTHS-MIAMI) Council, the Young Professionals Network (YPN) Council and the award-winning International Council, it represents 47,000 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 188 international organizations worldwide. MIAMI’s official website is http://www.MiamiRealtors.com