FL - Palm Beach County Housing Market Enjoys Double Digit Sales Spike in August
The Miami Association of Realtors is reporting that Palm Beach County total home sales surged double digits in August 2020.
Palm Beach County total home sales jumped 11.3% year-over-year, from 2,707 to 3,014. Palm Beach single-family home sales jumped 15.8% year-over-year, from 1,566 to 1,814. Palm Beach existing condo transactions increased 5.2% year-over-year, from 1,141 to 1,200.
"Homebuyers leaving tax-burdened Northeastern states to purchase Palm Beach real estate, record-low interest rates and pent-up demand fueled last month's transactions," JTHS-MIAMI President David Abernathy said.
Pent-up demand has led to an increase in mortgage applications locally and nationally. Mortgage applications to purchase a home rose 3% last week from the previous week and were a stunning 40% higher from a year ago, according to the Sept. 9 Mortgage Bankers Association's seasonally adjusted index.
The COVID-19 situation has accelerated the trend of homebuyers from New York and cold weather and tax-burdened Northeastern states searching and purchasing homes in South Florida.
Before the COVID-19 situation, the Palm Beach market was exceptionally strong. Miami real estate had record low delinquencies, 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.
Strong Price Appreciation in Palm Beach
Strong demand coupled with limited supply continue to drive price appreciation in Palm Beach.
Palm Beach County single-family home prices increased 12.4% year-over-year in August 2020, increasing from $355,000 to $399,000. Existing condo prices increased 17.8% year-over-year, from $182,500 to $215,000.