Here is your Palm Beach County Real Estate Market Report for May 2016 covering single-family homes, condos, and townhouses.
The real estate market throughout Palm Beach County remains healthy, diverse, and vibrant. Buyers are showing no signs of slowing down in their quest for the highest-demand of the prices ranges – the $150,000 to $225,000 range for single-family homes.
Much of this continued demand from buyers is thanks in part to strong domestic economy, and a healthy local Florida job market. Tourism continues to be the primary jobs driver in our state. Wages are healthy, so gainfully employed employees in these industries – hospitality, restaurants, tourism – are realizing that they too can be first-time homebuyers.
Here are some real estate market stats for your to consider.
Closed Sales Closed sales were down about 5% year-over-year, but increased month-over-month to 1,648 to April 2016’s 1,586.
Cash Sales Cash sales continue to cede from the market, representing only 33% of all closed sales in May 2016. That’s down 17% from this time last year. The number of cash transactions is down more than 20% from May 2015.
Median Sales Price Median sales price hit $311,000, a post-crash high. The last post-crash high was hit last month in April at $307,500.
At these levels, it’s our opinion that prices are not too high – they are stabilizing. Consider that $311,000 is only about 5% higher than it was a year ago. A 5% increase in home value year-over-year is fast, but it’s not aggressive. It’s also slowing down.
Condos and Townhouses
The market for condos and townhouses is not as flux. Closed sales inched up about 2% year-over-year for May 2016. Cash purchases continue to be the dominant preference among condo and townhouse buyers, with 57% of closed sales paid-in-full up-front. That compares to more than 62% last month.
Median Sales Price Median sales price grew 10% year-over-year to $165,500.
Dollar Volume Dollar volume increased about 9% from May 2015 to $341 million, though new pending sales and new listings have both stagnated over the last 12 months.
Time to Contract; Time to Sale Median time to contract was 51, a decrease form this time last year. That’s good news for sellers. More good news is that median time to sale or close was 91 days, which was flat year-over-year.
Remember that “median” means “mid-point”, not average. Cash sales of condos and townhouses will probably only take about 30 days to close, while buying a short-sale, pre-foreclosure, or financing the purchase of a condo or townhouse can greatly draw out the time to close to months.
If you’re looking for a high-end condo, now is the time to buy. Nearly half of all closed condo and townhouse transactions (47%) were for units in the $400,000 – $599,000 range. The demand in this price range far outpaces any other price range by a mile.
Is It Still a Seller’s Market?
In short, yes – but it’s becoming less clear. Inventory for single-family homes is starting to catch up to active buyer volume. We have over 2,200 new listings in the Palm Beach County real estate market this month, an 11.5% increase from May 2015. Although, there are over 7,000 active listings, an increase of over 10% from May 2015.
So new inventory that is hitting the market is only serving to subside the intense buyer demand we’ve witnessed in the past few months.
Ready to pull the trigger, and get in on the fun? Whether you’re ready to buy or sell your home, or both, we’d be honored to have the opportunity to discuss your goals with you. Call our talented Realtors at 561-500-LIST (5478), or stop into our office at 3631 S Dixie Hwy in West Palm Beach.
Call 561-500-LIST (5478) for a FREE consultation with one of our Realtors.
|SINGLE-FAMILY HOME||MAY 2016||MAY 2015||PERCENT CHANGE|
|Median Sales Price||$311,000||$295,000||5.4%|
|Days To Contract||43||52||17%|
|List to Sale Price||94.8||94.3||0.5%|
*Data provided by Realtor’s Association of the Palm Beaches (RAPB)