The residential single-family home real estate market in Palm Beach County is on track to continue its bull run through the first half of 2018, suggests data released on the housing market for the April and May 2018 periods.
Closed Sales are flat at about 0.7% increase year-to-date compared with the same period the year before.
While closed sales on a month-by-month basis are susceptible to volatile swings (up 5% in April, but down -2.7% in May), the year-to-date analysis offers the “big picture” to estimate the trends going forward.
Median Sales Price continues to hover around the $350,000 mark – a post-recession high for the county, and one of the fastest rising markets in the state in terms of sales price. In May, the median home value was $354,000.
That would mark the third month in a row in which median sales price broke its own high water mark. Recall that our market report for March 2018 detailed a $348k median sales price; April 2018 was $350k, and now May 2018 is $354k.
Median Sales Price for Three Month Period
- March 2018 – $348,000
- April 2018 – $350,000
- May 2018 – $354,000
Year-to-date 2018 appreciation in median sales price is an impressive 7%. Those gains are reflected in the steep upswell of total Sales Volume for the county, coming in at over $1 billon dollars for April 2018, only the second time in twelve months the figure reached eight figures.
Listings are also going under contract faster. Median Time to Contract is down over 7.5% for YTD 2018, while Median Time to Sale (in other words, how long it takes a listing to get to the closing table) is down -5% YTD 2018.
All this suggests that buyers are not waiting for prices to come down. They are off the sidelines and on the field, and in the game.
However, potential sellers are just barely keeping up with buyers. New Listings are flat both YTD 2018, and year-over-year.
Looking ahead to the second half of 2018
Feverish demand for single-family residential housing in Palm Beach County will not abate. As construction throughout South Florida continues to boom, housing affordability will become a real concern for housing officials, city leaders, and neighbors.
We’d certainly like to see more listings come on the market, to at least keep pace with closed sales, creating an equilibrium in which new listings replenish home that have sold, and lessen the gap between the glut of buyers and the precious few sellers in the market.
For many reasons, however, that is only theory. The reality is that population growth will continue to soar, the job market will continue to flourish, and single-family home buyers will far outpace the availability of homes for sale.
In the meantime, we have some excellent advice for potential buyers who have questions about affordability in Palm Beach County. Just give us a call any time for a free consultation with one of our talented Realtors at 561-500-LIST (5478).
May 2018 Single-Family Real Estate Market Stats
|SINGLE-FAMILY HOMES||MAY 2018||MAY 2017||PERCENT CHANGE|
|Median Sales Price||$354,000||$335,000||5.7%|
|New Pending Sales||1,805||1,965||-8.1%|