Palm Beach Gardens single family home sales post another solid month
Everywhere one looks there are signs of the troubled housing market finally recovering with a firm foundation. Bidding wars have become commonplace with properties selling above list price and in some cases above appraised valuations. As we turn from the spring buying season to the summer months things have changed and buyers in the northern Palm Beach County area are finding that it is not that easy to find a home.
There are certainly bumps in the road ahead with millions of homeowners across the country owing more on their mortgages than the property is worth and the level of foreclosures expected to pick up in the coming months. But the demand seems to be stronger than the supply locally and it sure feels like we are starting to move strongly from the bottom of this abyss that started over 7 years ago.
Let’ take a look at where May sales ended up in the local area;
#1 Jupiter –
#2 Tequesta –
#2 Hobe Sound –
#4 Palm Beach Gardens – down 9%
#5 North Palm Beach – down 36%
#5 Juno Beach – down 36%
There is no doubt that the lack of inventory is having an effect on sales numbers as buyers are out there hoping to lock in interest rates that are beyond low on a historical basis. While up last week the average overnight rate on a 30 year fixed mortgage remain at 3.67% which shows the overall economic recovery is still fragile at best. If we look at the average of the 6 reporting municipalities there was a 7% decrease in sales in May when compared to April numbers. Looking back to sales in May of 2011 sales were up an average of 14% from year ago numbers.
With that being said sales numbers were all across the board and we next move in this months report to our 4th place finish and Palm Beach Gardens where single family sales were down 9% from April numbers. Keep in mind that we are following on the heels of a very strong month when sales were up 36% from March so the decline must be interpreted in relationship to the overall trend which remains strong. During May a total of 90 Palm Beach Gardens single family homes changed hands compared with 99 during the previous month. With this performance we remain far ahead of the 12 month average which stands at 72.5 and also well above the 2011 pace when 55 Palm Beach Gardens single family homes sold in May.
While sales decreased slightly we did have sales in every price category and especially strong numbers in the uber-luxury category above $1,000,000 which weighed in with 11% of the overall market. Sales were solid in every price range which is a bullish sign of recovery across the board. The chart below shows the percentage of sales by price category for the month of May.
With solid sales in ever price category we would expect another strong performance in the median sales price of Palm Beach Gardens homes. In fact, the median sales price for single family homes in the Gardens fell slightly to $367,500 just below the $385,000 we saw in April. With this showing we remained ahead of the 12 month moving average which stands at $334,925 but just below the median price from May 2011 which stood at $399,900. It was also the 3rd highest monthly showing we have seen in Palm Beach Gardens home prices over the past 12 months; a very bullish sign indeed. The chart below shows median prices on a monthly basis over the previous 12 month period.
Always interesting in the south Florida housing markets…….