Palm Beach Condo Sales Beat up on Single Family Numbers
Look for continued volatilty in the real estate market in the months ahead
Paradise Sharks wants our clients to make well informed, educated decisions and with a real estate market that has been fairly volatile this is important. Timing is everything. If you bought a median priced single family home in the Northern Palm Beaches last January you would have paid $354,750. If you waited until July you would have paid $400,000 but by October you would have been back down to $365,000. Yes indeed timing is very important. This is our very last article of the calendar year 2014 and we are looking forward to the New Year ahead.
Our very first article of the year was way back on January 19th and here we are 189 articles later with our very last market update of the year. Way back in January our first article was about what interest rates and Steely Dan had in common. On that day interest rates on a conforming 30 year fixed mortgage sat at 4.31% which is just about 8% higher than they are today at 3.99%. Falling interest rates tells us the economy wasn’t necessarily hitting on all cylinders over the past year we could say that for the real estate market as well.
We told you in our last article how condo prices had stayed fairly strong and are near 6 year highs. The condominium market has remained much stronger than the single family home market over the last 5 months. As of December 15th sales of condos in the Northern Palm Beaches pulled back a bit but still show strength when compared to what we have seen with single family home sales.
Over the past 30 days condo sales have declined about 17% from month ago numbers. But we are almost 7% higher than we were a year ago and only trail the 12 month moving average by about 4%. Compare that with single family home sales that were down 35% over the past 30 days, down 13% from year ago numbers and trail the 12 month moving average by about 27%. Again, the condo market has been showing much more strength.
But will it continue? Pending home sales will not be updated again until the first of the year but all signs point to us beginning the new year and a multi-year low. Not a good sign. As always it’s always interesting and always fun. But for a few days we are taking off to celebrate the Holidays with family and friends and perhaps sip an egg nog or two. OK well maybe mine will be a margarita nog!
Paradise Sharks Real Estate