Despite some choppy waters in August, there have been noteworthy shifts on both sides of the closing table. Nationally, buyer activity is moving back in line with historical trends while sellers are making fewer concessions in order to sell their homes. Falling supply and improving absorption rates in many regions also suggest that market balance is realigning towards neutral. Locally, both sales and prices posted positive movement over August 2010, but do the rest of the numbers provide reason for optimism?
New Listings in Palm Beach County increased by 10.9 percent for Single-family homes and 6.6 percent for Townhouse-Condo properties. Meanwhile, Closed Sales increased 37.5 percent for Single-Family homes and 41.3 percent for Townhouse-Condo units.
The August Median Sales Price was $151,000 for Single-family, down 15.5 percent from a year ago, but down just 2.2 percent for Townhouse-Condos to end the month at $65,000. The absorption rate decreased for both property types, down to 7.1 months for Single-family homes and properties and to 7.8 months for Townhouse-Condos.
The economy bobbed along just this side of positive in August. Consumer confidence, which often affects housing demand, showed some slack even as personal income and spending both increased modestly. Low interest rates, declining supply and stabilizing prices are beacons of hope in the harbor, but the recovery still needs wind in its sails.
All data, information obtained from the Realtors Association of the Palm Beaches as an exclusive member service.
