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MIAMI - Palm Beach County median prices rose year-over-year in May 2020 as home sales experienced expected declines due to the global COVID-19 situation, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
While the latest data shows lower levels of closed sales compared to a year ago, new pending sales in May recovered compared to April. New pending single-family home sales in Palm Beach decreased by 11.2%, an improvement over the April decrease of 54.6%. New pending condo sales decreased by 20% in May, an improvement from the decrease of 66.6% in April.
"The Palm Beach County real estate market is already experiencing a remarkable recovery as evidenced by the increase in pending sales since mid-April despite the impact of COVID-19 on May sales," said JTHS-MIAMI President , David Abernathy. “Palm Beach County continues to be a seller's market for both single-family homes and condos. Historically low mortgage rates, virtual tools and lockouts have allowed many buyers to continue their home search process.
Pending sales, which began to rise in mid-April and are stronger than they were before COVID-19 stay-at-home orders, are expected to drive an increase in closed sales in the coming months.
Mortgage applications are on the rise in South Florida and nationally and the Miami mega region continues to see additional interest in Northeast home purchases. Nationwide, mortgage applications to buy a home increased 4% last week from the previous week and were a notable 21% higher than a year ago, according to the seasonally adjusted index from the Mortgage Bankers Association released on 17 of June. and the highest volume in more than 11 years.
The COVID-19 situation has accelerated the trend for New York and other Northeast states homebuyers with tax burdens seeking and buying homes in South Florida.
Prior to the COVID-19 situation, Palm Beach real estate was in record delinquency, no subprime mortgage crisis, strong demand / low supply, low interest rates, strong population growth, demand from foreign buyers and Tax refugees from tax-burdened states, high consumer confidence, and a strong job market.
Palm Beach County Median Price Increase
Strong demand, coupled with limited supply, continue to drive price appreciation in Palm Beach.
Single-family home prices in Palm Beach County increased insignificantly year-over-year in May 2020, increasing from $ 364,900 to $ 360,000. Existing condo prices increased 8.1% year-over-year, from $ 185,000 to $ 200,000.
Decline in Total Home Sales in Palm Beach County
Palm Beach County's total home sales decreased by 52.2% year-over-year in May 2020, from 3,323 to 1,588. Palm Beach County single-family home sales decreased by 47% year-over-year in May 2020, from 1,870 to 991. Existing condo transactions in Palm Beach County decreased by 58.9% year-over-year in April 2020, from 1,453 to 597.
The volume of the dollar decreases
The dollar volume of single-family homes decreased by 41.3% year-over-year, from $ 1.1 billion to $ 649.9 million. Condo dollar volume decreased by 50.2% year-over-year, from $ 412.5 million to $ 205.3 million.
According to Freddie Mac, the average commitment rate for a conventional 30-year fixed-rate mortgage decreased to 3,23% in May, down from 3,31% in April. The average engagement rate for all of 2019 was 3,94%.
A new condo approval process is expected to boost sales. The new guidance, which went into effect in October 2019, extends certifications from two years to three, allows for single-unit mortgage approvals, provides more flexibility with owner / occupancy ratios, and increases the allowable number of FHA loans in a single project. The changes, many of which have been promoted by MIAMI and NAR, are expected to create greater homeownership opportunities.
Palm Beach County Distressed Sales Remain Low, Reflecting a Healthy Market
Only 3.5% of all closed residential sales in Palm Beach County suffered problems last month, including REOs (bank owned) and short sales, compared to 2.6% in May 2020.
Palm Beach County's distressed total sales decreased 36.4%, from 88 to 56.
Short sales and REOs accounted for 0.6% and 2.9% YoY, respectively, of total Palm Beach sales in May 2020. Short sales transactions decreased 41.2% YoY while REOs decreased a 35.2%.
Nationally, distressed sales accounted for 3% of sales in May, almost on par with April, but up from 2% in May 2019.
Palm Beach County Real Estate Selling Near List Price
The median percentage of the original list price received for single-family homes was 95% in May, 0.4% up from 94.6% last year. The median percentage of the original list price received for existing condos was 92.5%, 1.2% less than 93.6% last year.
The median number of days between listing and contract dates for the sale of single-family homes in Palm Beach was 37 days, a decrease of 28.8% from 52 days last year. The median number of days between the listing date and the closing date of the condominiums was 52 days, a decrease from 7.1% of 56 days.
Median time to sell single-family homes was 84 days, a decrease of 13.4% from 97 days last year. Median days for condo sales was 94 days, a decrease of 4.1% compared to 98 days.
National and state statistics
Nationwide, total existing home sales transactions fell 9.7% from April to a seasonally adjusted annual rate of 3.91 million in May. Overall, sales fell year-over-year, 26.6% less than a year ago (5.33 million in May 2019).
Last month's closed sales of single-family homes statewide fell 36.2% year-over-year, totaling 19,622, while condo sales decreased 50.3%, for a total of 6,069. Closed sales can occur 30 to 90 days after sales contracts are written.
The national average price of existing homes for all types of homes in May was $ 284,600, 2.3% more than in May 2019 ($ 278,200), as prices increased in all regions. May's domestic price increase marks 99 consecutive months of year-over-year earnings.
In May, median sales prices statewide for single-family homes and condo properties increased year-over-year for 101 consecutive months. The state median sales price for existing single-family homes was $ 270,000, up 1.5% from the prior year, according to data from the Florida Department of Realtor Research in association with local real estate boards / associations. Last month's state median price for townhouse-condo units was $ 201,472, 3.3% higher than the prior year figure. The median is the midpoint; half of the houses sold for more, half for less.
Palm Beach County Cash Shoppers Still More Than Double the National Number
Palm Beach County cash transactions accounted for 39.9% of total May 2020 closed sales, compared to 44.2% last year. The national number of cash buyers is 17%.
Palm Beach County'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 for cash.
Condos comprise a large portion of Palm Beach's cash purchases, as 53.3% of condo closings were for cash in May 2020 compared to 31.8% of single-family home sales.
Sellers Market for Single Family Homes, Condos
Single-family home inventory decreased 18.6% in May from 7,184 active listings last year to 5,850 last month. Condo inventory decreased 0.4% to 6,109 from 6,131 listings during the same period in 2019.
Monthly inventory supply for single-family homes decreased 15.7% to 4.3 months, indicating a seller's market. Existing condo inventory increased 7.3% to 5.9 months, indicating a seller's market. A balanced market between buyers and sellers offers a supply of between six and nine months.
Total active listings at the end of May decreased by 10.2% year-over-year, from 13,315 to 11,959. Active listings remain approximately 60% below 2008 levels when sales bottomed out.
Palm Beach County new single-family home listings decreased 9.7% to 1,931 from 2,139. New condo listings increased 7.3%, from 1,600 to 1,716.
At the national level, the total inventory of homes at the end of May was 1.55 million units, 6.2% more than in April and 18.8% less than a year ago (1.91 million). Unsold inventory is at 4.8 months supply at current sales pace, compared to 4.0 months in April and 4.3 months in May 2019.
For the Palm Beach County Statistical Reports for May 2020, visit http://www.SFMarketIntel.com
Note: The statistics in this press release may vary depending on the dates of the reports. MIAMI reports accurate statistics directly from its MLS system.
Buying the home of your dreams, from the comfort of your home.
