Median sales price up to 6 month high
As we have reported for many months, sales of single family homes in the north Palm Beach County region have slowed considerably while inventory levels continue to climb. A few days ago our article on pending home sales increasing for the 1st time in 9 month was welcoming news. And today we are happy to bring more good news; median sales prices as of February 1st have again moved higher in the area.
As of February 1st the median sales price of a single family home in the north county region has increased for the 3rd straight month. From our January figures we saw prices up 2% from $353,000 to $360,000. It was August 1st of last year since we have seen prices this high which is a fantastic sign that there is still some steam in this recovery.
What is causing the movement is interesting. With sales down and inventory up one would think that pricing pressure would be firmly to the down side. But for the most part after jumping significantly the first three months of 2013 we have seen prices drop and now back up to exactly where we stood on April 1st of last year. While demand has appeared to diminish it still feels like there are many buyers who are dissuaded by list prices that generally are considerably higher that what we have seen.
It is not unusual to find a neighborhood where similar homes have sold over the past 90 days between $350,000 and $370,000 and the least expensive listing is now at $390,000. We have had numerous buyers who after being present the factual information have decided they must pay more to secure a home in today’s market. While many seller’s are standing firm we do see many price reductions but that may be from the $390,000 example above down to $380,000 and still above the most recent sales.
So in reality we are seeing a little movement on both sides; sellers are lowering their prices and buyers are willing to pay a bit more. This is how prices move higher and as the two sides get closer to each other hopefully we will see sales in the coming months starting to perk back up. Always interesting, always fun.