Home sales in Palm Beach Gardens hit new 11 month high
As we reported here yesterday, prices on single family homes in the Palm Beach Gardens area continue their climb. Up to another new 7 year high; for the 7th straight month. The one thing we need to keep this pricing momentum moving is strong sales and that is just what we got during the month of May. In fact, locally buyers were more active than at any time since July of last year.
Sales in the region were up over 27% from the previous month and about 21% over the 12 month average. Very strong numbers and what we expect this time of year especially with the strength we have been seeing in pending home sales. Interest rates remain very near 7 month lows with the average overnight rate on a conforming 30 year note sitting at 4.17%. All wonderful news.
Rising home prices are bringing more and more home owners into a positive equity position. This is a very important factor as they now have the ability to sell without having to bring a check to the closing table. The are now able to sell their home which should help add quality inventory to the market in the coming months. We are talking about proud homeowners who have keep up on their mortgage obligations during difficult times, fought to keep their home. Proud people who tend to take very good care of their property. It is exactly the kind of inventory our market is craving.
Florida still has a large number of homeowners underwater on their mortgages so we are not yet "out of the water". But we are seeing more fins above the surface and that is a very good thing. The sunshine state currently ranks 2nd highest in the nation, behind Nevada with over 26% of our borrowers owing more of their homes than they are worth. They need prices and sales to remain strong. We need more fins out of the water.
We expect sales to slow a bit over the summer; it's almost inevitable. But if we can hold are own watch out once the 2014-2015 season rolls around. We keep telling you it is going to be busier around here than you have ever seen. And we meet ever, like in history. That means more buyers, looking at fewer properties and higher prices. And more fins out of the water.
Paradise Sharks Real Estate