Banks Start To Loosen Up In Underwriting

January a Relatively Flat Month for Hobe Sound Home Sales

I am the luckiest guy in the world. Not only do I have an incredible family and wonderful friends but I live in Paradise running around in shorts and flip flops working in the best industry in the world. And I get to do it during the craziest real estate market ever encountered and it is always interesting and challenging. I am honored to serve on the Agent Leadership Council of Keller Williams Realty (the BEST real estate firm in the world) and next week we head off to our family reunion where thousands of the best agents meet to learn more about the current status of our industry.

And the timing couldn’t be better as we are seeing metrics that I have never witnessed before. January sales figures in the northern Palm Beach County region point to a turning point that will continue to play itself out through the year. Every month at this time we report where sales came in the previous month and this month in our 6 reporting categories we have one that reported a 58% decrease in sales and one that reported a 350% increase. How interesting is that? Very interesting. So without further adieu we bring you the North County Sales Power Rankings;

#1 Juno Beach
#2 Tequesta
#3 Hobe Sound - down 8%
#4 Jupiter - down 34%
#5 North Palm Beach - down 38%
#6 Palm Beach Gardens - down 58%

Yes, I did say that sales numbers ranged from a decrease of 58% to an increase of 350% and now I am going to tell you this is great news for the continued recovery that seems to be gathering strength. How can a decrease of 58% be great news? Inventory is the answer and the main reason sales have stalled is a lack of inventory with a price and condition that buyers will react to. Believe me the buyers are out there ready to act on interest rates that can only be described at phenomenal. But the homes they are seeking aren’t out there. Sellers are asking higher prices for quality homes and either inventory with prices to match buyers expectations increases which is unlikely, or sellers will lower prices which is more likely or we continue this stalemate between the two parties to a transaction. Appraisals will be key as even if a buyer wants to pay a higher price and are borrowing money will the appraisal justify the price for the lender? Didn’t I tell you I was lucky?

This month’s 3rd place finisher in our sales power rankings are single family home sales in Hobe Sound that decreased but only 8% from December sales numbers and a much better showing than some of their neighboring communities. With these numbers we still stayed far below the 12 month average which stands at 18.92 but just ahead of the 10 homes sold in January of last year. The last 3 months sales have been dragging in Hobe Sound and there is no doubt that a shortage of well priced inventory is part of the problem.



While sales stayed about the same they remained mired in the lower price ranges with 64% of all sales below the $300,000 threshold. We did see couple sales in the ultra luxury market over $1,000,000 which represented 18% of the market but there were only two other sales above the $300,000 mark so it was certainly not a strong month in Hobe Sound. The chart below shows the percentage of sales by price category for the month of January.



With the strong showing in sales below $300,000 and weakness above that number we would expect to see the median price drop and that is what we got. In fact we dropped to $229,777 from $282,500 in December for a monthly decline of about 19%. With this showing we were very close to the 12-month average of $223,245 but a bit above the median price sale of $191,000 we saw in January of last year. Are higher prices coming your way? Could be so keep tuned in and as always we will bring you the most accurate market information as it is available. The chart below shows median prices on a monthly basis over the previous 12 month period.



This crazy world of real estate is what I thrive on and nothing gives me more satisfaction than assisting others in finding that perfect home and negotiating the best pricing and terms or listing and marketing their current home to achieve the best results. Your free consultation is but a phone call away so if we can be of service in any way to you, your friends, family or colleagues please do not hesitate to give me a call. Easily reached at 561 308-1075 or via e-mail at tom@tompriester.com we are here to assist in any way that we can.



Always at Your Service,



Tom Priester e-PRO
"Results Driven Real Estate"

Keller Williams Realty
561 308-0175
tom@tompriester.com

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Hobe Sound Inventory Levels Jump 5% in January

Where on earth did January go? Here in southern Florida we have had an amazing season so far with weather we all dream about; or at least our northern friends do. We started the year with plenty of optimism about the continuation of the local real estate market recovery. We all tend to judge how things are going based on our own activity and I can tell you my days start early and end late and busy is not a strong enough word.

Inventory levels are one of the most important metrics we watch and that is why we review them in this article each month at this time. So many factors have a great influence on the real estate market but inventory levels and the quality of that inventory have a huge impact on sales. And that impact is both on the number of sales as well as the prices realized and that is why it is so important for us to track those numbers on a continuing basis. While I am still about 10 days+/- from sharing January’s final sales numbers with you I can tell you that they are looking to be very anemic and the lack of inventory is a major factor in those numbers.

Overall we have seen inventory levels shrink significantly throughout Palm Beach and Martin Counties. Over the past few months we have seen a bit of a reversal in this trend which is good news for buyers but bad news for potential pricing increases. Throw in some higher foreclosure numbers through January and the world of South Florida real estate remains interesting; very interesting. The need for a qualified Realtor® representing and watching out for your best interests has never been more important.

This report shows our home inventory “power rankings” for the month ending January 31st. Last month we switched things up in the way we rank inventory and now our top rated municipality will be the one who shows the highest reduction in inventory levels. Since it is these reductions, when coupled with stronger sales, which will move prices higher we want to rank those accordingly. So here are the inventory power rankings are the rankings for the month of January;

#1 Juno Beach -

#2 Palm Beach Gardens -

#3 Tequesta -

#4 Hobe Sound - UP 5%

#5 Jupiter - UP 7%

Overall inventory levels around the area were up for the month of January with a median increase in inventory of 4% over the past thirty days which is a slightly bearish sign for the market or at least on upward pricing pressure. We next move to Hobe Sound in this months report with a 4th place finish with an increase in inventory of 5% over the past 30 days. As of February 1st we have 381 active listings compared to 363 on January 1st and we are now about 26% below our 12 month high back on March 1st. We are also well below the 517 units we had in inventory one year ago.

You will find it very easy to reach me at 561 308-0175 or via e-mail at tom@tompriester.com if there is anything that I can do to assist you with real estate questions that you may have. We are committed to bringing only the highest level of service to you, your family, friends and colleagues so if we can be of service in any way please do not hesitate to contact us at your convenience.

Cheers,

Tom Priester e-PRO

"Results Driven Real Estate"

Keller Williams Realty

561 308-0175

tom@tompriester.com