Palm Beach County Total Luxury Home Sales Surge

MIAMI — Palm Beach County total luxury sales and total South Florida showing appointments increased year-over-year, according to July 2023 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.

 

Palm Beach total luxury ($1-million-and-up) rose 8.4% year-over-year in July 2023 to 309 transactions. South Florida showing appointments, meanwhile, increased for the third consecutive month, jumping 8% year-over-year, from 208,359 to 224,187 in July 2023.

 

“With its unparalleled waterfront properties and lifestyle, Palm Beach County ranks among the top markets in the U.S. for luxury and ultra-luxury real estate,” JTHS-MIAMI President Martha Gillespie-Beeman said. “High-taxed, high-density homebuyers from California, New York, New Jersey continue relocating to South Florida.”

 

Palm Beach Single-Family Home Pending Sales Rise

It’s difficult to compare today’s home transactions to the roaring 2021-22 era, when mortgage rates hit an all-time low of 2.65%, a worldwide pandemic led to the expansion of remote work and a pandemic-fueled housing boom registered historic sales.

 

Palm Beach total home sales decreased 5.1% year-over-year in July 2023, from a historic 2,222 transactions in July 2022 to 2,109 in July 2023, because of elevated mortgage rates and lack of supply in certain price points.

 

Most of the homes purchased in July 2023 came to terms in June when mortgage rates peaked at 6.71%. Rates, in comparison, were 5.09% on June 2, 2022. Even with the elevated rates, Palm Beach single-family pending sales rose 2.6% year-over-year to 1,245 transactions in July 2023.

 

Home sales are sensitive to mortgage rate changes. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 7.09% as of August 17. That’s up from 6.96% the prior week and 5.13% one year ago.

 

Palm Beach single-family home sales decreased 2.2% year-over-year, from 1,190 in July 2022 to 1,164 in July 2023 because of its comparison to a historic month and the current market has lower inventory in specific price points and higher rates.

 

Palm Beach existing condo sales decreased 8.4% year-over-year, from a historic 1,032 in July 2022 to 945 in July 2023, due to lack of inventory and rising mortgage rates.

 

Palm Beach Luxury Sales Surge in July 2023

Palm Beach total luxury ($1-million-and-up) rose 8.4% year-over-year in July 2023 to 309 transactions.  Palm Beach single-family luxury transactions rose 3.8% to 246 transactions. Palm Beach condo luxury transactions increased 31.3% to 63 transactions.

 

Miami ranks No. 4 in super-prime ($10M+) and No. 5 in ultra-prime ($25M+) sales and Palm Beach/Broward rank No. 7 in super prime and No. 6 in ultra-prime transactions according to the 2023 Knight Frank Wealth Report.

 

Palm Beach Home Prices, Household Income Rise with Wealth Migration

Palm Beach County single-family home median prices stayed even year-over-year in July 2023 at $600,000. Existing condo median prices increased 8.3% year-over-year to $315,000 from $290,777.

 

Historically, a market with less than 6 months of supply will have appreciating prices. Palm Beach single-family homes and existing condos are at 2.9 and 3.6 months, respectively.

 

“South Florida’s price appreciation continues to outpace the national trend. With more new contracts signed for every new fresh listing, this area is still a seller’s market, especially for single-family homes priced below $600,000, which typically get snapped up in two weeks,” MIAMI REALTORS® Chief Economist Gay Cororaton said.

 

Local home prices have risen with South Florida’s wealth migration. In-migration boosted South Florida household income by $16 Billion in 2021, according to MIAMI REALTORS® analysis of the 2020-2021 migration data released by the Internal Revenue Service.

 

New households moving into Miami-Dade in 2021 had an average adjusted gross income of $229,300. New households moving into Broward County had an average adjusted gross income of $102,600. New households moving into Palm Beach County had an average adjusted gross income of $242,200.

 

Broward Inventory, New Listings Still Near All-Time Lows

The monthly historical average for Palm Beach County inventory is 16,196 and current inventory is at 6,959.

 

Total active listings at the end of July increased 6% year-over-year, from 6,562 to 6,959.

 

Inventory of single-family homes decreased 11% year-over-year in July 2023 from 3,854 active listings last year to 3,430 last month. Condominium inventory increased 30.3% year-over-year to 3,529 from 2,708 listings during the same period in 2022.

 

New listings of Palm Beach single-family homes decreased 28.1% to 1,980 from 1,423 year-over-year. New listings of condominiums decreased 16.1%, from 1,499 to 1,257 year-over-year.

 

Months’ supply of inventory for single-family homes increased 7.4% to 2.9 months year-over-year, which indicates a seller’s market. Inventory for existing condominiums increased 80% to 3.6 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 July was 1.11 million units, up 3.7% from June but down 14.6% from one year ago (1.3 million). Unsold inventory sits at a 3.3-month supply at the current sales pace, up from 3.1 months in June and 3.2 months in July 2022.

 

Palm Beach Real Estate Posts $257 Million Local Economic Impact in July 2023
Every time a home is sold it impacts the economy: income generated from real estate industries (commissions, fees and moving expenses), expenditures related to home purchase (furniture and remodeling expenses), multiplier of housing related expenditures (income earned as a result of a home sale is re-circulated into the economy) and new construction (additional home sales induce added home production).

 

The total economic impact of a typical Florida home sale is $122,000, according to NAR. Palm Beach sold 2,109 homes in July 2023 and had a local economic impact of $257 million.

 

Palm Beach total dollar volume totaled $1.7 billion in July 2023. Single-family home dollar volume decreased 10.47% year-over-year to $1.3 billion. Condo dollar volume increased 10.1% year-over-year to $450 million.

 

Palm Beach Distressed Sales Remain Low, Reflecting Healthy Market
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 0.4% in July 2022.

 

Short sales and REOs accounted for 0.2% and 0.4% year-over-year, respectively, of total Palm Beach sales in July 2023.

 

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

 

Palm Beach Median Price Appreciation Outperforming Nation, State

In Florida, closed sales of single-family homes statewide totaled 22,198 in July 2023, down 6.4% year-over-year, while existing condo-townhouse sales totaled 8,463, down 9.4%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

 

Nationally, total existing-home sales transactions waned 2.2% from June to a seasonally adjusted annual rate of 4.07 million in July. Year-over-year, sales slumped 16.6% (down from 4.88 million in July 2022).

 

The statewide median sales price for single-family existing homes was $415,000, up 0.7% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $319,000, up 4.6% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

 

Nationally, the median existing-home price for housing types in July was $406,700, an increase of 1.9% from July 2022 ($399,000). Prices rose in the Northeast, Midwest and South but were unchanged in the West.

 

Palm Beach Real Estate Attracting Near List Price
The median percent of original list price received for single-family homes was 96.1% in July 2023, down from 98.2% last year. The median percent of original list price received for existing condominiums was 95.5%, down from 99% last year.

 

The median number of days between listing and contract dates for Palm Beach single-family home sales was 22 days, up from 14 days last year. The median time to sale for single-family homes was 66 days, up from 57 days last year.

 

The median number of days between the listing date and contract date for condos was 28 days, up from 12 days. The median number of days to sale for condos was 72 days, down from 54 days.

 

Palm Beach Cash Sales 85% More than National Figure
Cash sales represented 48.1% of Palm Beach closed sales in July 2023, compared to 51% in July 2022. 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 54.5% of all Palm Beach existing condo sales and 42.9% of single-family transactions.

 

To access July 2023 Palm Beach Statistical Reports, visit http://www.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 (MIAMI) was chartered by the National Association of Realtors in 1920 and is celebrating 103 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of six organizations: MIAMI RESIDENTIAL, MIAMI COMMERCIAL; BROWARD-MIAMI, a division of MIAMI Realtors; JTHS-MIAMI, a division of MIAMI Realtors in the Jupiter-Tequesta-Hobe Sound area; MIAMI YPN, our Young Professionals Network Council; and the award-winning MIAMI Global Council. MIAMI REALTORS represents nearly 60,000 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 256 international organizations worldwide. MIAMI’s official website is www.MiamiRealtors.com

 

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