June’s performance for the Palm Beach County real estate market for existing homes largely reflected the prevailing trends that we had seen for 2018 thus far, as revealed in the latest market statistics from Florida Realtors.
Overall, 50 fewer single-family homes sold in Palm Beach County in June 2018 as compared to June 2017, a 2.7% decline. Meanwhile, 60 more condos and townhouses sold this past June, an increase of 4.9% compared to the same period the previous year. The number of closed sales year to date (January-June 2018) did not change from the previous year for single-family homes and rose 4.3% for condos/townhomes.
The absence of sales growth (especially in single-family homes) of the past couple of years is due primarily to the decline in the numbers of active listings, mostly in the “affordable” price tiers. Overall, the inventory of homes for sale (active listings) declined 2.4% for single-family homes and 0.4% for condos and townhomes. This shortage of available homes for sale is causing the slowdown in the number of closed transactions.
Because of continued strong demand, the scarcity of homes for sale is also serving to drive prices up. In June, the median sale price for single-family homes in Palm Beach County was $355,000, up 2.9% from June 2017. Even more dramatically, the median price for condos and townhomes was $190,000, up 10.1% from the previous year. Year to date (Jan-June), the median price for single-family homes increased 6.2%, while those for condos/townhomes rose 7.9%. Likewise, average prices for closed sales have risen year to date. The average sale price of closed sales this year for single-family homes was $586,208, an increment of 10.6%; for condos/townhomes, it was $297,407, a hike of 11%. Although we generally prefer median sale price over the average sale price, the difference in the rate of increase shows that the market for higher priced homes has improved. As an example, there were 52 sales of condos/townhomes over $1,000,000 in June, up 33.3% over the same period in 2017. For single-family homes, there was a more modest of 3.8%, with 135 homes over $1,000,000 closing in June in the county.
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Gloria Singer is the Broker of Boca Expert Realty, a boutique Boca Raton real estate company with a focus on professional service and an unparalleled customer experience. Our select agents are amongst the top performing professionals in the field. Visit www.BocaExpert.com for information on Boca Raton, Delray Beach and Highland Beach real estate and to connect with an expert in the local market.