Season is just around the corner. The kids are back in school, college football is underway and the real estate market is coming out of the summer doldrums. One of the more interesting facts is the reduction in condo inventory. Last month it dropped to 155; this month ended at 144 units available, the lowest in many years. With the closing of August 2014, let’s recap the latest stats for condominium re-sales on Singer Island:
- There have been 136 condo re-sales on Singer Island through August 2014. The sold prices averaged 93.4% of list price.
- Year-to-date 57% of the condo re-sales were under $500K, with 17.6% being in the $1 million plus range.
- The average Days-on-Market (DOM) for the older condos remains at 134 (approx. 4.5 months of inventory); as well as, the newer condos remaining at 245 days (8.2 months) on market.
- There were no short sales in August.
- The highest re-sale in August was the Resort Marriott Condo/Hotel 2000 for $950,000, and the least expensive sale was Dunes Towers B-1D at $205,000.
- As of the end of August, condo inventory continues its decline to 144 units.
- Price per square foot of the older condos (built 1969-1989) remained constant at $253; and the price per square foot of the newer condos (built 2003-2008) decreased slightly to $549.
Palm Beach County’s Housing Market Continues to Improve:
As mentioned in our 2nd quarter 2014 Market Update, property values in Palm Beach County have increased dramatically in the last 12 months. Alone with the increase in property values is the decrease in the number of “Underwater” mortgages. Palm Beach County real estate hit a mortgage milestone this year when the proportion of underwater loans fell below 20 percent, a rate that more closely reflects national trends and that represents a strong improvement from 2011’s market bottom, when 44 percent of Palm Beach County mortgages were in negative equity.
Nationally, underwater mortgage-holders made up 17 percent of borrowers during the second quarter of the year, representing 8.7 million homeowners. The restoration of equity in Palm Beach County is the likely result of 2013’s dramatic price climbs, which pushed home values up and gave more sellers an opportunity to put their homes on the market as traditional sales, rather than short sales.
Palm Beach County Property Appraiser Gary Nikolits said last week the market value countywide climbed by 12.8 percent in 2013 to $182 billion, from $162 billion the year before.
Zillow economists found that 18 percent of the underwater homeowners in South Florida owe more than double on their mortgage than their home’s value. The cumulative negative equity amount for the tri-county (Palm Beach, Broward and Miami-Dade) is $19 billion.
Today’s Zillow report also looked at the differences nationally between age groups when it comes to having an underwater mortgage. About 43 percent of Generation X borrowers — people age 35 to 49 — are underwater, compared to 15 percent of millennial homebuyers and 31 percent of baby boomers.
“Baby boomers may not be able to find move-up buyers for their homes as Gen X remains stuck, and millennials can’t move into the more affordable starter homes currently occupied by Gen X,” the report noted.
Zillow economist Skylar Olsen said before the housing bust, it was normal to have about 3 percent of mortgages under water. “The lower the number, the higher the ability of homes to go on the market for sale as a transaction in a normal setting,” Olsen said. “As the underwater number comes down, it really does mean greater health for the area.”
Last month, Palm Beach County had 2,261 new single-family homes listed for sale, according to the Realtors Association of the Palm Beaches. That’s an 11 percent increase from July 2013. At the same time, the number of short sales was down 53 percent.
Our Market Update provides detailed information regarding condos newly listed, pending and sold on Singer Island for the current month.
Enjoy this information prepared just for you!
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2014 has become another great year for the Walker Real Estate Group; as the #1 Sales Team on Singer Island, our goal is to provide our customers a true concierge experience in all their real estate transactions. Trust, integrity and knowledge of the market is our number one priority.
For more information on specific condominium sales activity contact Jeannie at 561-889-6734 or email her at [email protected].