The Miami Association of Realtors reports that due to high mortgage rates and a lack of available inventory, total residential sales in the Palm Beach County area in October 2022 decreased 31.4% year over year, from 2,809 to 1,927.
Single-family home sales in Palm Beach fell by 28.7%, from 1,471 to 1,049 units. Condo transactions in Palm Beach decreased by 34.4%, from 1,338 to 878.
In October 2022, the median price for a single-family home in Palm Beach County rose from $500,000 to $570,000, an increase of 14% from the previous year. The median price of an existing condo increased by 22.4% from $237,000 to $290,000.
Due to a long-term decline in rates before March 2022 and the slow but steady growth of household income, median prices have increased nationwide, and with them, so has the ability to purchase a home. According to a Redfin report, West Palm Beach (No. 5) and Miami (No. 6) were among the Top-10 U.S. metros where homebuyer income increased the most during the pandemic.
Total Active Listings in Palm Beach Rise for Fourth Month in a Row
At the end of October 2022, there were 7,351 active listings, up from 4,129 at the previous year’s same time.
Single-family home inventory increased 93.8% year over year in October 2022, going from 2,212 active listings to 4,286 this past month. The number of condominium listings increased by 59.9% from the same period in 2021 to 3,065 listings, from 1,917 listings.
Single-family home new listings in Palm Beach fell by 6.9% to 1,577 from 1,694. Condominium new listings fell by 12.3%, from 1,509 to 1,323.
Single-family home months’ supply increased 146.2% to 3.2 months from year to year, indicating a seller’s market. A seller’s market is also indicated by the increase of 92.3% in the inventory of existing condominiums to 2.5 months. A market with an equal number of buyers and sellers offers a supply of six to nine months.
Distressed sales in Palm Beach are still low, reflecting a strong market
From 26 to 17, the total number of distressed sales in Palm Beach fell by 34.6% in October 2022. In October 2022, sales in Palm Beach as a whole increased by 0.2% and 0.7%, respectively, year over year. While REOs decreased 26.3% year over year, short sale transactions fell by 57.1%.
Compared to 0.9% in October 2021, only 0.9% of all closed residential sales in Palm Beach last month were distressed, including REO (bank-owned properties) and short sales.
The percentage of distressed sales in Palm Beach is comparable to the national average. Similar to October 2021, distressed sales made up about 1% of sales nationwide in October.
In October 2022, Palm Beach Cash Sales will almost double the national average
In contrast to October 2021, when cash sales made up 48.2% of closed sales in Palm Beach, they made up 48.6% in October 2022. According to the most recent NAR statistics, about 26% of U.S. home sales are made in cash.
Rising rates have no effect on cash buyers. The high proportion of cash buyers is a reflection of South Florida’s top ranking as the premier American real estate market for foreign buyers, who frequently pay in full upfront. Some of these buyers are also relocating from more expensive U.S. markets, where they can purchase more thanks to their real estate sales proceeds.
40.8% of single-family transactions and 57.9% of all existing condo sales in Palm Beach were cash deals.