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MIAMI - Palm Beach County median prices increased year-over-year in June 2020 as home sales continued to trend up despite the global COVID-19 situation, according to the MIAMI Association of Realtors ( MIAMI) and the Multiple Listing Service (MLS) system.
Pending new home sales in June increased double digits year-over-year. Pending sales are a future indicator of closings for one to two months. New pending single-family home sales in Palm Beach increased 31% year-over-year, from 1,746 to 2,287. New pending condo sales increased 14.2% in June, from 1,301 to 1,486.
"The Palm Beach County real estate market continues its remarkable recovery, as evidenced by increased pending sales and growing market activity," said JTHS-MIAMI President David Abernathy. "Palm Beach County continues to be a seller's market for both single-family homes and condos."
Pending sales started to rise in mid-April and are stronger than before COVID-19 orders to stay at home. Home sales, however, are taking longer to close. Time to hire single-family homes in Palm Beach increased 12% year-over-year in June, from 50 days to 56 days. Shelter-in-place and social distancing orders are in some cases delaying the closing of the home buying process, including home inspections, appraisals and walk-ins.
Mortgage applications, another indicator of future sales, are increasing in South Florida and nationally as the Miami mega region continues to see additional interest in Northeast home purchases. The Mortgage Bankers Association (MBA) reported that mortgage applications increased by 5.1% week-over-week for the week ending July 10.
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 5.3% year-over-year in June 2020, increasing from $ 356,990 to $ 376,000. Existing condo prices increased 7.9% year-over-year, from $ 190,000 to $ 205,000.
Decline in Total Home Sales in Palm Beach County
Palm Beach County's total home sales decreased by 15.5% year-over-year in June 2020, from 2,858 to 2,415. Single-family home sales in Palm Beach County decreased 12.6% year-over-year in June 2020, from 1,692 to 1,478. Existing condo transactions in Palm Beach County decreased 19.6% year-over-year in June 2020, from 1,166 to 937.
The volume of the dollar decreases
Single-family dollar volume increased 16% year-over-year, from $ 858.2 million to $ 995.8 million. Condo dollar volume decreased 13.4% year-over-year, from $ 329.7 million to $ 285.5 million.
According to Freddie Mac, the average commitment rate for a conventional 30-year fixed-rate mortgage decreased to 3,16% in June, compared to 3,23% in May. The average engagement rate in 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 3.1% of all closed residential sales in Palm Beach County suffered problems last month, including REOs (bank owned) and short sales, compared to 2.1% in June 2020.
Palm Beach County's distressed total sales increased 22.9%, from 61 to 75.
Short sales and REOs accounted for 0.5% and 2.6% YoY, respectively, of total Palm Beach sales in June 2020. Short sales transactions increased 18.2% YoY while REOs increased a 24%.
Nationwide, distressed sales accounted for 3% of sales in June, almost on par with May, but up from 2% in June 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 June, 0.3% up from 94.7% last year. The median percentage of the original list price received for existing condos was 94.1%, 0.4% up from 93.7% last year.
The median days between listing and contract dates for the sale of single-family homes in Palm Beach was 56 days, an increase of 12% from 50 days last year. The median number of days between the listing date and the closing date of the condominiums was 67 days, an increase from 21.8% of 55 days.
Median sales time for single-family homes was 102 days, an increase of 5.2% from 97 days last year. Median days for condo sales was 107 days, an increase of 12.6% compared to 95 days.
National and state statistics
Nationwide, total existing home sales transactions increased 20.7% from May to a seasonally adjusted annual rate of 4.72 million in June. However, overall sales fell year-over-year, 11.3% less than a year ago (5.32 million in June 2019).
Statewide, closed sales of single-family homes statewide last month increased 1.3% year-over-year, totaling 27,650, while single-family home sales decreased 10.9%, for a total of 8,996. 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 June was $ 295,300, 3.5% more than in June 2019 ($ 285,400), as prices increased in all regions. June's domestic price increase marks 100 consecutive months of year-over-year earnings.
In June, median sales prices statewide for single-family homes and condo properties increased year-over-year for 102 consecutive months. The state median sales price for existing single-family homes was $ 282,000, up 4.4% 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 $ 210,000, 7.7% more than the previous year. 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 37.6% of total June 2020 closed sales, compared to 40.3% last year. The national number of cash buyers is 16%.
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 50.5% of condo closings were for cash in June 2020 compared to 29.5% of single-family home sales.
Sellers Market for Single Family Homes, Condos
Single-family home inventory decreased 26.1% in June from 6,753 active listings last year to 4,989 last month. Condo inventory increased 2.5% to 5,831 from 5,691 listings during the same period in 2019.
Monthly inventory supply for single-family homes decreased from 22.9% to 3.7 months, indicating a seller's market. Existing condo inventory increased 2.5% to 5.8 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 June decreased by 13.1% year-over-year, from 12,444 to 10,820. Active listings remain approximately 60% below 2008 levels when sales bottomed out.
New single-family home listings in Palm Beach County increased 0.9% to 1,846 from 1,829. New condo listings increased 21.7%, from 1,372 to 1,670.
At the national level, the total inventory of homes at the end of June amounted to 1.57 million units, 1.3% more than in May, but 18.2% less than a year ago (1.92 million). Unsold inventory is in 4.0-month supply at current sales pace, down from 4.8 months in May and 4.3 months in June 2019.
For Palm Beach County Statistical Reports for June 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.
