January a Relatively Flat Month for Hobe Sound Home Sales
I am the luckiest guy in the world. Not only do I have an incredible family and wonderful friends but I live in Paradise running around in shorts and flip flops working in the best industry in the world. And I get to do it during the craziest real estate market ever encountered and it is always interesting and challenging. I am honored to serve on the Agent Leadership Council of Keller Williams Realty (the BEST real estate firm in the world) and next week we head off to our family reunion where thousands of the best agents meet to learn more about the current status of our industry.
And the timing couldn’t be better as we are seeing metrics that I have never witnessed before. January sales figures in the northern Palm Beach County region point to a turning point that will continue to play itself out through the year. Every month at this time we report where sales came in the previous month and this month in our 6 reporting categories we have one that reported a 58% decrease in sales and one that reported a 350% increase. How interesting is that? Very interesting. So without further adieu we bring you the North County Sales Power Rankings;
#1 Juno Beach
#3 Hobe Sound – down 8%
#4 Jupiter – down 34%
#5 North Palm Beach – down 38%
#6 Palm Beach Gardens – down 58%
Yes, I did say that sales numbers ranged from a decrease of 58% to an increase of 350% and now I am going to tell you this is great news for the continued recovery that seems to be gathering strength. How can a decrease of 58% be great news? Inventory is the answer and the main reason sales have stalled is a lack of inventory with a price and condition that buyers will react to. Believe me the buyers are out there ready to act on interest rates that can only be described at phenomenal. But the homes they are seeking aren’t out there. Sellers are asking higher prices for quality homes and either inventory with prices to match buyers expectations increases which is unlikely, or sellers will lower prices which is more likely or we continue this stalemate between the two parties to a transaction. Appraisals will be key as even if a buyer wants to pay a higher price and are borrowing money will the appraisal justify the price for the lender? Didn’t I tell you I was lucky?
This month’s 3rd place finisher in our sales power rankings are single family home sales in Hobe Sound that decreased but only 8% from December sales numbers and a much better showing than some of their neighboring communities. With these numbers we still stayed far below the 12 month average which stands at 18.92 but just ahead of the 10 homes sold in January of last year. The last 3 months sales have been dragging in Hobe Sound and there is no doubt that a shortage of well priced inventory is part of the problem.
While sales stayed about the same they remained mired in the lower price ranges with 64% of all sales below the $300,000 threshold. We did see couple sales in the ultra luxury market over $1,000,000 which represented 18% of the market but there were only two other sales above the $300,000 mark so it was certainly not a strong month in Hobe Sound. The chart below shows the percentage of sales by price category for the month of January.
With the strong showing in sales below $300,000 and weakness above that number we would expect to see the median price drop and that is what we got. In fact we dropped to $229,777 from $282,500 in December for a monthly decline of about 19%. With this showing we were very close to the 12-month average of $223,245 but a bit above the median price sale of $191,000 we saw in January of last year. Are higher prices coming your way? Could be so keep tuned in and as always we will bring you the most accurate market information as it is available. 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 others 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 or colleagues please do not hesitate to give me a call. Easily reached at 561 308-1075 or via e-mail at firstname.lastname@example.org 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