Hobe Sound single family home sales down 33% in June
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 –
#2 Palm Beach Gardens –
#3 Jupiter –
#4 Tequesta –
#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 start with single family home sales in Hobe Sound which was the only municipality where sales did not increase last month. During June these sales were down 33% when compared to May. This falls on the heels of an 8% increase in May and the first monthly decrease we have seen in 5 months. Keep in mind inventory levels have dropped in Hobe Sound for 5 straight months and the lack of homes is no doubt playing a huge role in area sales. During June a total of 20 Hobe Sound single family homes changed hands compared with 30 during the previous month. With this performance we still stay ahead of the 12 month average which stands at 17.83 but below the 2011 pace when 28 Hobe Sound homes sold in June.
While sales were weak they also were heavily weighted in the $150,001 to $300,000 price range with 45% of all sales. The luxury market fared poorly last month with only 1 sale above $750,000. This was a different showing that the general area where sales above the $1,000,000 market were very strong in most municipalities. The chart below shows the percentage of sales by price category for the month of June.
With so many sales in the $150,001 to $300,001 range we would expect a fairly weak performance in the median sales price of Hobe Sound homes. In fact, the median sales price for single family homes fell to $239,900 well below the $276,500 we saw in May. With this showing we did remain barely above the 12 month moving average which stands at $239,702 and also slightly ahead of the median price from June 2011 which stood at $235,000. 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……..