The Palm Beach Gardens housing market appears to have hit a soft bottom during the past few months with some communities faring better than others.
The median price of a single family home in Palm Beach County hovered between $228,000 and $234,000 during the first five months of the year. In June that price jumped to $250,000 and then receded slightly to $245,000 in July. The August sales figures should be available before the end of September giving us a better idea of the overall trend line.
Lower priced properties are seeing the most action as we emerge from the worst housing downturn in decades. In Palm Beach Gardens about 725 homes sold from January through August 2009 with 55 percent closing at or below $300,000.
We believe that first time homebuyers, taking advantage of a maximum $8000 federal tax credit, are responsible for the surge in lower price properties. But that program May expire at the end of November. With many of the quality lower priced properties now sold we can expect to see more moderate priced homes selling.
Some communities are faring better than others.
Property values in Ironhorse Country Club have remained somewhat steady between 2008 and 2009 as other communities have seen values decline. And the number of sales in Ironhorse are up about one-third. With five Ironhorse homes selling between January and August, 2008, the average dollars per square foot was $163. In 2009 with eight homes selling during the first eight months, the average dollars per square foot was $161. There are more than 30 homes on the market in Ironhorse today.
At Ibis Country Club, there is a 25 percent decline in the number of sales during the first eight months of 2009 compared with the same period of 2008. In 2009, 48 homes sold, while in 2008 63 sold from January through August. And prices in Ibis have decline 12%-13% from 2008 to 2009. Ibis homes priced at $500,000 or less averaged $156 a square foot in 2008 and $137 a square foot in 2009. Homes priced above $500,000 averaged $231 per square foot in 2008 and $202 a square foot in 2009. Today there are more than 170 homes in Ibis available for purchase.
Sales in higher end communities remain slow.
In Steeplechase, Palm Beach Gardens premiere estate community, just one home sold through August 2009. It was a foreclosure and sold at $153 per square foot, not at all reflective of property values in Steeplechase. More than 15 homes are for sale in Steeplechase today.
In San Michele just one home sold between January and August, 2009 and that closed at $198 per square foot, a 14 percent decline from 2008. There are about 20 homes for sale in San Michele.
The Weiss-Clawson Team provides market research to our clients, friends and neighbors on communities throughout Palm Beach Gardens and Palm Beach County so that they can make the best decisions about their real estate interests. If you are considering buying or selling a home, please contact The Weiss-Clawson Team directly. We would like to work with you.
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