North Palm Beach single family home sales fall sharply
The local real estate market continues to intrigue. Inventory levels continue to drop and prices continue to rise and the two are certainly related. As the number of properties available for buyers to consider drops the laws of supply and demand take over. As supply diminishes and demand stays constant prices will rise. There are certainly appraisals to contend with but everyone agrees prices are finally on the upswing.
There are buyers everywhere looking to act on interest rates that continue to amaze. Foreclosed properties continue to be snapped up and in a future article we are going to take an in depth look at a remarkable change in who is ending up with these properties. Buyers are reading to act but suitable properties are not out there in many price categories. If demand stays strong we could see even more significant increases.
This demand is growing as many buyers do not want to miss out now that they feel the bottom has passed and the fear of buying into a dropping market dissipates. But the inventory issues has finally shown itself in the numbers and sales volume has dropped as buyers run out of options. Let’s take a look where these numbers ended up for the month of July in the northern Palm Beach County region.
#1 Hobe Sound -
#2 Jupiter -
#3 Palm Beach Gardens -
#4 Tequesta -
#5 North Palm Beach - down 37%
We again see a wide range in the northern Palm Beach County area during July with a median sales decrease of 25% and an average increase of 17.2% from the reporting municipalities. No doubt inventory is affecting different neighborhoods and cities in a variety of fashions and the range in sales we witnessed again last month shows that very clearly. We start this months report with the 5th place finisher of North Palm Beach where sales were down 37% when compared to June. This falls on the heels of a 111% increase in June so must be taken in context. During July a total of 12 North Palm Beach single family homes changed hands compared with 19 during the previous month. With this performance we stay ahead of the 12 month average which stands at 10.58 and also far ahead of the 2011 pace when only 4 North Palm Beach homes sold in July.
While sales fell they were also heavily weighted in the $150,001 and $300,000 price category which weighed in with 6 sales representing 50% of the overall market. The luxury market above $1,000,000 also put in a solid performance with 3 sales and 25% of the overall market. No other price category had more than a single sales. The chart below shows the percentage of sales by price category for the month of July.
With so many sales below the $300,000 barrier we would expect a weak performance in the median sales price of North Palm Beach homes. In fact, the median sales price for single family homes rose slightly to $307,000 just above the $300,000 we saw in June. With this showing we did remain just above the 12 month moving average which stands at $308,417 but far above the median price from July 2011 which stood at $220,000. 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.
The big question is the overall economy and it’s effect as we move forward........