Hobe Sound Home Sales Drop 44% in November
After a very solid, but mixed, month of sales during October I was anxious to see how things panned out in November. As reported earlier in the blog interest rates are at record lows, pending sales were also very solid but mixed and we have seen a slight increase in inventory levels. There is no doubt that the lower inventory levels we have been experiencing have an impact on sales so let’s look at the final numbers for last month. During November our real estate sales power rankings ended up like this;
#1 Juno Beach
#2 Palm Beach Gardens
#4 North Palm Beach
#5 Hobe Sound down 44%
#6 Tequesta down 60%
None of the markets we cover in this report showed increased sales in November which is the first time we have seem that for a long time. In fact, all but 1 of these markets showed a double digit decline from October levels. The market in some segments is very strong and finding homes for certain clients remains a very difficult task. Other segments still have a ways to go and we are hardly out of the woods when it comes to calling an end to the great real estate bubble. The overall economy certainly comes into play and it would appear that unemployment will remain a long term issue. Foreclosure activity in Palm Beach County has showed higher numbers over the past three months so the next few months will as always be very interesting to watch.
This month’s 5th place finisher in our sales power ranking are single family home sales in Hobe Sound that were down a very significant 44% from the previous month. This was also our lowest monthly sales level since January and hopefully just a temporary setback to what has been a strong market over the past three quarters. We dropped rather significantly in November with just 10 sales compared to 18 in October. We also fell well below the 12 month average which stands at 20.08 and below the 14 homes that sold in November of last year.
While sales levels were very low they were also heavily concentrated on homes that sold for less than $300,000 which accounted for 70% of all sales during the month. We did have 3 sales scattered at higher prices but certainly a weak month for the luxury home market in Hobe Sound. The second chart shows the percentage of sales by price category for the month of November.
With sales mainly in the lower price ranges I we would expect to see the median sales price have a weak showing and that is what it did. We actually saw a decrease in median price to $197,500 from the $243,500 we saw the previous month. We were also well above the 12 month average of $225,388 and this is the 4th lowest monthly we have seen in 12 months. We also stayed well below the median price sale of $362,500 we saw in November of last year. The final chart shows median prices on a monthly basis over the previous 12 month period.
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