2 minute read
SINGLE FAMILY HOMES
All Neighborhoods
Q4 Summary: Single Family Homes: All Neighborhoods
Advertisement
Transaction volume was down -67% year-over-year (YOY)* in Q4, largely driven by decline across both waterfront and non-waterfront properties.
Total sales value* was down -56% YOY, driven by a -50% decrease in non-waterfront sales and a -66% decrease in waterfront sales value.
Price per square foot (PPSF)* across home size* (PPSF: Home Size) continued to grow YOY, and was up +34%.
Price per square foot lot size (PPSF: Lot Size) was up similarly, growing YOY at a rate of +35%.
FOOTER: Glossary
Year-over-year (YOY ): A method of evaluating two or more measured events, comparing the results of one period with those of a comparable period on an annualized basis.
Total sales value : The sum of all sales during a period of time.
Price per square foot (PPSF): A calculation of the value of each square foot of area of a house, condo or any building. It is calculated by dividing the price by the square footage.
PPSF: Home Size: Home size is based on the current under air square footage.
PPSF: Lot Size: This is based on the PPSF of the total lot.
Inventory: Active Listings
Though the number of active listings still sits in the double digits, we have seen an increase of +26% YOY from an average of 41 active listings in Q4 2021 to an average of 52 active listings in Q4 2022.
Sale to List Ratio*
In Q4 2022, single family homes sold on average -7% below the asking price.
Days On Market
125 Days
Homes continue to sell at an improved rate in Q4 2022. Single family homes stayed on the market for an average of 125 days, which was a YOY improvement of -15% compared to Q4 2021, when homes took an average of 146 days to sell.
FOOTER: Glossary
Sale to List Ratio: The ratio of the final sale price of a home to its list, or asking, price expressed as a percentage. If the sale to list ratio is above 100%, the home sold for more than the list price. If it’s less than 100%, the home sold for less than the list price.
Single Family Homes Transactions
2022 closed out the year with a total of 106 single family home transactions. This was on par or in some cases above what we’ve seen in the years prior to 2020.
Single Family Homes Price Per Square Foot (PPSF): Home Size
PPSF: Home Size was up +46% YOY. Waterfront PPSF: Home Size was up +31% YOY compared to non-waterfront, which was up +59% YOY.
Single Family Homes Total Sales Value
Total sales value for single family homes was just shy of $2B in 2022, closing out the year at $1.98B. The breakdown was split fairly evenly between waterfront ($870M) and non-waterfront ($1.1B) single family home sales.
Total sales value on single family homes was down -58% in 2022 compared to 2021, flat compared to 2020, and up significantly compared to a typical year pre-2020.
Single Family Homes Price Per Square Foot (PPSF): Lot Size
PPSF: Lot Size was up +47% YOY. Waterfront PPSF: Lot Size was up +44% YOY and non-waterfront was up +53% YOY.
Single Family Home Average Sale Price ($)
Average sale price was up +33% YOY. Waterfront average sale price was up +25% YOY compared to non-waterfront average sale price, which saw an increase of +42% YOY.
Compounding Annual Growth Rate (CAGR)/ Price Appreciation
The 2021 trajectory of record high price appreciation on single family homes continued in 2022. Single family homes appreciated at a rate of +46% YOY.
Compounding Annual Growth Rate (CAGR)/ Price Appreciation
CAGR for the Palm Beach single family home asset class over the last 40 years sits at 8.97%
Price Per Square Foot:
Comparing Performance Across Neighborhoods
Historically, the Estate Section traded at a premium compared to other neighborhoods on the island. In 2022, the other neighborhoods caught up and were no longer considered more of a value purchase.
FOOTER: Glossary
Compound Annual Growth Rate (CAGR): A performance metric that provides insight into an investment’s growth rate over a specified period of time longer than one year.
