Banner Month for North Palm Beach Single Family Home Sales
May is flying by so quickly and the buzz in local real estate offices grows louder every day. Everyone is slammed and there just never seems to be enough hours in the day to handle the load. Remarkable is the best way to describe where the market seems to be going and almost every sign shows that overall prices have bottomed and finally after 6 years are back on the rise.
Each month in this column we bring you a recap of the previous months sales levels and much like the national trend the upswing continues to grasp the market. Nationally, home prices have dropped 34% from the highs experienced in 2006 and interest rates keep dropping to new record lows. A tremendous combination that has made homes more affordable than we have seen in decades. Even with inventory levels that continue to shrink sales have been tremendous across the board. Certain market segments are not seeing as robust of a recovery and still there are going to be bumps in the road ahead but right now things are rosy indeed. Especially in the investment and single family home markets it would be hard to imagine times being better. Buyers must be working with a Realtor who can quickly get them in front of new opportunities and present offers that have the best chance of getting accepted or risk missing out on the best deals.
Let’ take a look at April sales;
#1 North Palm Beach – up 133%
#2 Juno Beach – up 57%
#3 Palm Beach Gardens – up 36%
#4 Jupiter – up 19%
#5 Hobe Sound – up 9%
#6 Tequesta – down 25%
OK we did start off a bit weak in Tequesta but median increase over March sales in the region was 27% and the average an even stronger 38%. This is the second straight month we have seen these types of numbers and there is no doubt the spring buying season of 2012 has been very robust in northern Palm Beach County.
With a giant 133% increase April’s 1st place finisher were single family home sales in North Palm Beach. Last months sales level was the highest we have seen over the past 22 month and another sign that home prices may be heading higher at last. During April a total of 14 North Palm Beach homes changed hands compared with 6 during the previous month. With this performance we jump far ahead of the 12 month average which stands at 9.5 and also well ahead of the 2011 pace when 10 single family homes sold in April.
While sales increased they were also in each and every price category which shows property moving at each price point. However, sales were strongest by far in the $150,001 to $300,000 price category which represented 50% of all sales The uber-luxury market is showing signs of recovery with 7% of all North Palm Beach single family home sales above $1,000,000. Inventory continues to be an issue and the foundation is solidly cast for higher prices ahead. The chart below shows the percentage of sales by price category for the month of April.
With strong sales under $300,000 we would expect a poor performance in the median sales price last month especially on the heels of an incredibly strong performance in March In fact, in April the median sales price for North Palm Beach single family homes dropped sharply to $277,500 far below the $620,000 we saw in March. Again, March was a strange month with big sales numbers and those will effect the 12 month average moving forward. With this showing we still stayed just below the 12-month average of $290,950 and also far ahead of the median price from April 2011 which stood at $203,500. Just another sign that prices are under upward pressure for the first time in over 6 years. The chart below shows median prices on a monthly basis over the previous 12 month period.
Keep tuned next month to see where things go from here…….