This summer is going to be very interesting......
Single family home sales in the northern Palm Beach County region have been red hot; up over 63% since the low we hit with January sales. Condo sales were up almost 70% during the same period. Strong numbers, very strong numbers but still far below where sales volume was a year ago. Prices however have been setting new "post bubble" highs. Median single family home prices up over 15% in 7 months. Median condo prices up over 10% in the last 3 months alone.
Everything we are seeing locally is looking great. We see more crowds in June than we have ever before. The beaches are more crowded, there are waiting lines at the most popular restaurants, the local bars are serving more margaritas than they ever have this time of the year. I keep telling everyone I see that next season is going to be off the hook, crazy busy. Like nothing we have ever seen before. It is coming. Just like those trains everyone is talking about.
But just what is going to happen to the price of local real estate? We just published an article relating to the debt in our country and the world and I am still waiting for someone who can explain that entire deal to me. I have to figure our debt will keep growing and there is nothing I can do about it. Our market is different that other markets but no doubt the overall economic picture effects us. But we watch the numbers and we watch them closely. We put our home on the market in 2005 and rented for 6 1/2 years before buying a little over two years ago because the numbers did not look right. We told anyone who would listen that is was a great time to sell. Almost everybody laughed at me.
I am certainly concerned about the economic times we live in but we watch the numbers. Closely. Very closely. And right now they look good. If we can hold steady over the summer months with prices and sales, next season looks hot, really hot. We watch pending home sales each day and publish them twice each month for our readers. One of the absolute most important metrics when it comes to predicting what is going to happen over the next 2 to 3 months. Critical.
As of today, pending home sales in the Palm Beach Gardens area have fallen for the 2nd straight month which we somewhat expect this time of year. Down 8% from last month at this time. Last year we dropped about 5.5% during the same month. Sales in 2013 were far ahead of 2014 during the first 5 months. What we really need is a stronger performance than last year over the next 5 months. If we get it, watch out as prices are going to climb substantially. If not anything can happen. It's why we watch the numbers. At this moment, we trail last years' pending home sales numbers by almost 20%. We need that number to shrink.
If you are even thinking about buying or selling in today's market make sure you understand the numbers surrounding that particular house. Always interesting, always fun.
Paradise Sharks Real Estate