April Home Sales in Tequesta Up Big Again by Another 28%
Another month has passed us by and the summer months are staring us straight in the face. This means less traffic at our favorites beaches and restaurants but also the start of hurricane season which we pray is a quiet one. We want to remind our neighbors to always be prepared as the numbers are starting to work against us. A major hurricane is one with winds of more than 111 miles per hour and the last time one crossed into our country was way back in 2005. This is the longest stretch since records have been kept and add in the fact that the Atlantic waters have warmed considerably over the past few months and you see why experts are predicting a 72% chance that a major hurricane will make landfall in the US this year.
So while traffic at the beach may be down the same cannot be said for the local real estate market which is becoming more and more frustrating to buyers who are lined up to buy homes that simply aren’t available. Prices are up and inventory is down but sales remain very strong. Last month in this column we reported that March sales numbers in the northern Palm Beach County region were off the chart. In fact they were up in each of our reporting municipalities by an average of 43.4%. In a market with shrinking inventory numbers numbers like this show us how crazy it is out there on the front lines.
List prices are up in the Palm Beach County area by 14.6% compared to the same period in 2012. Sales prices during the same period were up a remarkable 18.5% with sales volume up 11.3%. So not only do buyers have fewer choices they are paying considerably higher prices and the buzz in the air is starting to feel like what we experienced during 2002 to 2005 when the whole bubble got big enough it had to burst. Over the past few days reports are out that housing starts declined by 16.5% in April but these declines were due in large part to a slow down in apartment community construction. This was offset by a very healthy leap in building permits which increased a significant 14.3%. New home communities are busy, very busy, and builders are raising prices with each new release as they try to slow down sales while they scramble to find and develop buildable lots. New jobless claims rose to the highest level we have seen for a couple months, manufacturing numbers were weak but retail sales numbers beat projections while inflation remained almost non-existent. Truly a mixed bag but each of these economic segments will play a role in where the market heads from here. Interest rates will also play a role moving forward and they are up again this week and are up a full 25 basis points from where we stood just three weeks ago.
Even with the large pricing increases we have seen over the past year prices still remain a value when compared to the height of the market. Last month in this column we reported median sales were up an amazing 53% in our reporting municipalities and we have to wonder if this incredible pace can continue with further inventory declines. Again we want to point at that many new home sales do not show up in Multiple Listing numbers which makes these sales volume increases even more remarkable. So without further adieu let’s take a look at home sales in Tequesta and the surrounding communities for the month of April and see what has happened since our last report.
Tequesta – up 28%
Palm Beach Gardens – up 11%
Jupiter – up 10%
Hobe Sound – up 7%
North Palm Beach – down 45%
Last month was the first time we had reported stronger sales in each of our reporting communities for a very long time. It would be remarkable if we could repeat that performance and we did not. However this month 80% of them reported increases over last month which is a testament to the strength we are experiencing. During the month ending May 1st the average number of sales from our reporting municipalities increased by 2.2% but this number is heavily weighted by a poor sales month in North Palm Beach. The average increase sits at 10% in month over month numbers which is more reflective of the true market action.
We move next in this months report to home sales in Tequesta that increased another 28% on the heels of last month’s amazing increase of 59%. During the month of April a total of 23 Tequesta single family homes sold compared with 18 during the previous month. With this showing we stayed far ahead of the 12 month average sales volume which currently stands at 14.17. On a “seasonal” note home sales in Tequesta also ended up far above the 1 sales we had in the same month in 2012.
As we saw sales volume increase in Tequesta we saw the heaviest activity in homes priced between $300,001 and $500,000 with 8 sales representing 35% of the market. With this showing the median sales price jumped significantly higher to $475,000 up from last months number of $375,000. We also stayed well above the 12 month average which now stands at $387,935. From a “seasonal” perspective we stayed far above the median sales price from April of last year which came in at $315,000. Below are the charts showing the percentage of single family home sales in each category for the month of April as well as median prices over the past 12 months in Tequesta.
So again we remind all of our readers to be well prepared for the hurricane season that starts in 10 days. The weather and the real estate market should remain very interesting over the coming months.
Fins up until June…………