Median Sales Price Drops to 16 Month Low
Another very interesting week on the front lines in the south Florida real estate market. Of note is a significant increase in foreclosures in Palm Beach County, the continuation of declining inventory levels and interest rates that remain at all time historical lows. We also say goodbye to Steve Jobs who made a bigger impact on our technological world than anyone; as I type this blog on my MacBook while listening to music on my iPod. We tend to see the market through our own eyes and thankfully I am as busy as ever and most interested in sitting down today to pull the final September sales figures and see where we stand. Last month our real estate sales power rankings ended up like this;
#1 Juno Beach
#3 North Palm Beach down 18%
#4 Palm Beach Gardens down 21%
#5 Hobe Sound down 24%
#6 Tequesta down 31%
Overall we saw a softening of sales when compared to the numbers we had last month although not all municipalities showed a decline. In September we saw very high levels of $1,000,000+ home sales and these too slowed considerably. Median sales prices when compared to September were relatively flat with 3 markets showing increases and 3 showing declines. We continue to be inventory challenged with my biggest challenge is finding well priced homes in good condition to meet my buyers expectations.
In this months 3rd position in our sales power ranking are single family home sales in North Palm Beach that declined 18% from the previous month. While this months decline looks large the lack of inventory plays a role as do the concerns regarding the overall economy. Still they remained fairly solid with 9 sales compared to 11 in August. We did stay just above the 12 month average which stands at 8.75 and ahead of the 8 homes that sold in September of last year.
While sales levels fell they also were mainly in the lower priced categories as investors and first time home buyers continue to play a significant role in the market. Sales during the month were dominated in the under $300,000 price categories which came in at 89% of all sales for the month. Compare that to the 11% that sold for above $300,000. The chart below shows the percentage of sales by price category for the month of September.
With the large percentage of lower priced sales we would expect to see the median sales price stay low and that is what it did. We actually saw a very significant decrease in median price to $190,000 from the $325,000 we saw the previous month and a brand new 12 month low. In fact it was in May 2010 that we had a lower monthly number. We were also well below the $265,000 median price we experienced in September of last year and also far below the 12 month average of $316,367. Foreclosures continue to put significant pressure on pricing and we saw a big jump in the auction numbers this week which is certainly concerning. The chart below shows median prices on a monthly basis over the previous 12 month period.
This crazy world of real estate is what I thrive on and nothing gives me more satisfaction than assisting other in finding that perfect home and negotiating the best pricing and terms or listing and marketing their current home to achieve the best results. Your free consultation is but a phone call away so if we can be of service in any way to you, your friends, family and colleagues please do not hesitate to give me a call. Easily reached at 561 308-1075 or via e-mail at email@example.com we are here to assist in any way that we can.
Always at Your Service,
Tom Priester e-PRO
“Results Driven Real Estate”
Keller Williams Realty