FL - Greater Palm Beach County Home Sales Slide 32 Percent Annually in July
The Miami Association of Realtors recently reported that Palm Beach County Florida's total home sales in July 2022 decreased year-over-year when compared to last summer. July 2022 sales were down year-over-year, from 3,315 to 2,222.
Single-family home sales decreased 32.9% year-over-year, from 1,774 in July 2021 to 1,190 in July 2022, due to lack of inventory and rising mortgage rates. Palm Beach existing condo sales decreased 33% year-over-year, from 1,541 in July 2021 to 1,032 in July 2022, due to lack of inventory and rising mortgage rates.
In July 2021, Palm Beach sales surged to a record-high because of 3% mortgage rates, higher supply (particularly in condos) and pandemic-driven demand.
In July 2022, Palm Beach sales were impacted by higher rates of 5-6% when contracts were established in May and June and lower inventory.
South Florida: A Bargain in Comparison to Other Global Cities & U.S. Metros
Miami-Fort Lauderdale-West Palm Beach's price per square meter is $3,170, far below at least 30 global cities and 13+ U.S. Metros including markets such as Hong Kong ($28,570), New York City ($17,191), San Francisco-Oakland-Hayward, CA ($8,250), Madrid, Spain ($6,173), Los Angeles-Long Beach-Glendale, CA ($4,740) and Seattle-Tacoma-Bellevue, WA ($4,460), according to National Association of REALTORS Profile of International Transactions in U.S. Residential Real Estate 2022.
Palm Beach County single-family home median prices increased 20% year-over-year in July 2022, increasing from $500,000 to $600,000. Existing condo median prices increased 24.8% year-over-year, from $233,000 to $290,777.
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 (2.7 months) and condos (2 months) are low. Also, one of the supports for home prices is rents and rents are rising strongly.
Locally, the greater share of South Florida luxury sales is also part of the reason for the large year-over-year increase in median prices.
Palm Beach Cash Sales More than Double National Figure in July 2022
Cash sales represented 51% of Palm Beach closed sales in July 2022, compared to 48.3% in July 2021. About 24% 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.