Volume of sales continues to impress
One thing that is needed to keep the impressive price increases we have seen lately in northern Palm Beach County condos is sales. And sales for the month ending May 15th certainly did not disappoint. While they were down very slightly from the levels we experienced one month prior and were down by about 11% from 2013 numbers it was a strong month. In fact, it was the 3rd highest monthly total we have seen since we started keeping these records many moons ago and 34% above the 12 month average. Strong, strong numbers.
As we announced in our article published yesterday, median condo prices in the Juno Beach area hit a new 5 year high. The local real estate market is hitting on all cylinders as we head into the summer months. As we keep telling you, we are blessed to live in a unique area that plays by a different set of rules. No doubt the overall economy will effect us and at some point cash buyers may not make up the enormous percentage they now do. Maybe at that point things will change. Over the last month, well over 70% of all condo sales in the northern Palm Beach County region were closed with cold, hard cash. Are you kidding me? With the average overnight rate on a 30 year conforming fixed rate loan at 4.17%?
With money being so cheap on a historical basis it seems crazy that over 70% of our condo buyers do not want to take advantage. And it is not just condos as 50% of all sales in the area were closed with cash last month. One has to believe we need to stay close to those numbers to see this strength continue and it may in fact happen. We keep telling you the northern Palm Beach County region is changing, becoming more well know, more well respected, more of a destination. Read our article from last week where one international firm has chosen us as the #6 location in all of America for their luxury brand.
This recognition is going to drive people to our area, many of those people will be interested in buying real estate. Increased demand. And no more land on which to satisfy this growing demand. Even in this mixed up world, stronger demand and no new supply means rising prices. And without a meltdown in the overall economy they are coming your way. We will continue to say just hold our own over the summer months and next season is going to be huge. More crowded, bigger lines, more traffic, higher real estate prices. Just watch. Always interesting, always fun.
Paradise Sharks Real Estate