Residential Real Estate News
Palm Beach County Overall Home Sales Down 25 Percent Annually in September
According to the Miami Association of Realtors, total Palm Beach County residential sales decreased 25.5% year-over-year in September 2022, from 2,830 to 2,109, because of rising mortgage rates and low inventory.
Palm Beach single-family home sales decreased 19.3%, from 1,450 to 1,170. Palm Beach condo transactions declined 32%, from 1,380 to 939.
Palm Beach County single-family home median prices increased 23.4% year-over-year in September 2022, increasing from $469,900 to $580,000. Existing condo median prices increased 17.6% year-over-year, from $246,500 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 Aug. 2022 Redfin report.
Home prices are determined by supply and demand. Lower supply and higher demand create higher prices. Inventory for Palm Beach single-family homes (2.9 months) and condos (2.2 months) are low. Also, one of the supports for home prices is rents and rents are rising strongly.
Inventory of single-family homes increased 67.8% year-over-year in September 2022 from 2,370 active listings last year to 3,977 last month. Condominium inventory increased 38.1% year-over-year to 2,806 from 2,032 listings during the same period in 2021.
New listings of Palm Beach single-family homes decreased 9.5% to 1,562 from 1,726. New listings of condominiums decreased 22.6%, from 1,530 to 1,184.
Months' supply of inventory for single-family homes increased 107.1% to 2.9 months year-over-year, which indicates a seller's market. Inventory for existing condominiums increased 57.1% to 2.2 months, which also indicates a seller's market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Total active listings at the end of September 2022 increased 54.1% year-over-year, from 4,402 to 6,783.
Total Palm Beach distressed sales decreased 50% in September 2022, from 24 to 12. Short sales and REOs accounted for 0.1% and 0.4% year-over-year, respectively, of total Palm Beach sales in September 2022. Short sale transactions decreased 70% year-over-year while REOs decreased 35.7%.
Only 0.6% of all closed residential sales in Palm Beach were distressed last month, including REO (bank-owned properties) and short sales, compared to 0.8% in September 2021.
Palm Beach's percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented approximately 2% of sales in September, a marginal increase from 1% in September 2021.
