North Palm Beach single family home sales rebound
We have a problem here in the south Florida real estate market. A real problem and one quite different than what we have been experiencing over the past 7 years. There are not enough homes out there to satisfy the growing numbers of buyers looking to lock in both low prices and ultra-low interest rates. This is most evident in the investor market and single family homes priced under $400,000.
When a new listing hits the market it is like bees on homey with multiple showings within hours, multiple offers and lightning fast sales. One subdivision in Palm Beach Gardens a few short months ago had 12 listings and sellers were begging buyers to cross the threshold. Today that same subdivision has no homes available and prices are up.
Today the National Association of Realtors announced that sales of previously occupied homes dropped on a nationwide basis by 5.4% which is the lowest rate since October. Let’s take a look at where June sales ended up in the local area and just how strong the local market is compared to the national averages;
#1 North Palm Beach – up 111%
#2 Palm Beach Gardens – up 21%
#3 Jupiter – up 11%
#4 Tequesta – up 7%
#5 Hobe Sound – down 33%
Truly a wide range in the northern Palm Beach County area during June with a median sales increase of 11% and an average increase of 23.4% from the reporting municipalities. No doubt inventory is affecting different neighborhoods and cities in a different fashion and the range in sales we witnessed last month shows that clearly. We next move to single family home sales in North palm Beach who finished in 1st place in this months standings with amazing jump. During June these sales were up 111% when compared to May. This falls on the heels of a 36% decrease in May but brings us to the highest monthly sales total we have seen in North Palm Beach in many years. During June a total of 19 North Palm Beach single family homes changed hands compared with 9 during the previous month. With this performance we stay far ahead of the 12 month average which stands at 9.92 and also ahead of the 2011 pace when 13 North Palm Beach homes sold in June.
While sales were solid they also fell in to every price category. Especially strong were sales between $150,001 and $300,000 representing 42% of the overall market. The luxury market above $1,000,000 also put in a solid performance with 3 sales and 16% of the overall market The chart below shows the percentage of sales by price category for the month of June.
With so many sales below the $300,000 barrier we would expect a poor performance in the median sales price of North Palm Beach homes. In fact, the median sales price for single family homes fell sharply to $300,000 far below the $430,000 we saw in May. With this showing we did fall just below the 12 month moving average which stands at $301,167 but stayed above the median price from June 2011 which stood at $239,900. All signs still point to 2012 being the year we finally see prices rising after 7 years of decline. The chart below shows median prices on a monthly basis over the previous 12 month period.
Keep watching as things are just heating up in southern Florida……..