From the Palm Beach Post iPad application:
Palm Beach County’s home prices and sales volume were up in June with a 14 percent surge in purchases of single-family homes over last year and a 7 percent spike in median prices to $225,000. The increases, noted in a Thursday report from the Realtors Association of the Palm Beaches, boosted confidence that a slow but sustained housing recovery is under way in South Florida. But Realtors and homebuyers said the side effects of a healing market — low inventory and high competition — are frustrating. Supplies of single-family homes in Palm Beach County shrunk to 5 months in June, down 43 percent from the same time in 2011. “It’s just kind of a shock to the system to have to tell a buyer they have two homes to pick from and they better make an offer now,” said Shannon Brink, a Realtor with RE/MAX Prestige Realty in West Palm Beach. “As I’m trying to schedule appointments, the homes are going under contract.” It’s a similar scene statewide where inventory of single-family homes was down 40 percent in June from last year to 6 months. At the same time, median sales prices climbed 8.2 percent to $151,000 and sales volume was up 5.3 percent. Nationally, prices jumped 8 percent in June from a year ago to $189,400, but Wells Fargo economists called a 5.4 percent dip in sales from May a “surprise” and “sorely disappointing.” Although national sales volume was up 4.5 percent in June from the same time in 2011, the seasonally adjusted annual rate of 4.37 million is the lowest since October. Sales were projected to be at an annual rate of 4.62 million in June. “It’s the biggest swing and miss in two years,” said George Mason University real estate finance Professor Anthony Sanders. “As I have said repeatedly, this is going to be a partial recovery.” Lawrence Yun, chief economist for the National Association of Realtors, blamed low inventory for the slip in sales in June from May. The total number of homes for sale nationally fell 3.2 percent in June from May to less than a 7-month supply. “Despite the frictions related to obtaining mortgages, buyer interest remains solid,” Yun said. “But inventory continues to shrink and that is limiting buying opportunities. This, in turn, is pushing up home prices in many markets.” Thursday’s housing numbers topped a week of good news for the real estate market. On Wednesday, the Commerce Department reported that builders started construction on the most new homes and apartments last month since October 2008. Realtor.com reported Tuesday that asking prices rose for the fifth straight month in June, signaling more optimism among sellers. In Palm Beach County, homes stayed on the market an average of 104 days in June before selling, a 11 percent drop from last year. “There are so many investors and so much cash that first-time homebuyers are losing out on deals, which is what was happening during the bubble, and it is kind of frightening in some sense,” said Palm Beach County Realtor Kevin Kent of Platinum Properties. All-cash sales accounted for 29 percent of home sales in June nationwide with investors purchasing 19 percent of homes, according to the National Association of Realtors. First-time buyers accounted for 32 percent of purchasers in June. Despite record low interest rates, first time-homebuyers, who can be laden with student debt, may have trouble finding financing. The average rate on 30-year loans fell to 3.53 percent from 3.56 percent last week. What’s hanging over the real estate recovery is the shadow market, an unknown number of foreclosed homes either still in the process of being repossessed or bank-owned but not yet up for sale. Through the end of January, there were 373,539 foreclosure cases backlogged in Florida courts, according to the state courts administrator. Palm Beach County’s share of the backlog was 32,341. The fear is if those homes flood the market all at once, prices will crash again. For now, Brink said he tells first time-homebuyers and investors the same thing — don’t hesitate if you like something. “The inventories dropped so fast. It’s literally a battle out there,” Brink said.
http://bitly.com/PnhDVP To view on palmbeachpost.com, Thanks a Million!
Constance Crawford, P. A.,
CDPE, SFR
Advanta Realty
Primerica
Direct: 561-601-2622
Fax: 800-215-8895
www.ccrawford.advantarealty.com www.ConstanceCares.com Sent from my iPad
