Palm Beach Gardens single family home sales up 21%
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 – 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 Palm Beach Gardens who finished in 2nd place in this months standings. During June these sales were up 21% when compared to May. This falls on the heels of a 9% decrease in May but brings us to the highest monthly sales total we have seen in Palm Beach Gardens in many years. During June a total of 111 Palm Beach Gardens single family homes changed hands compared with 92 during the previous month. With this performance we stay ahead of the 12 month average which stands at 74.25 and also ahead of the 2011 pace when 92 Palm Beach Gardens homes sold in June.
While sales were solid they also fell in to every price category. Especially strong were sales between $150,001 and $500,000 representing 62% of the overall market. The luxury market above $1,000,000 also put in a solid performance with 12 sales and 11% 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 $500,000 barrier we would expect an average performance in the median sales price of Palm Beach Gardens homes. In fact, the median sales price for single family homes fell slightly to $334,000 just below the $367,500 we saw in May. With this showing we did remain above the 12 month moving average which stands at $328,279 but behind the median price from June 2011 which stood at $413,750. 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……..