By ALEXANDRA CLOUGH
Palm Beach Post Staff Writer
Updated: 4:36 p.m. Tuesday, May 22, 2012
Posted: 4:27 p.m. Tuesday, May 22, 2012
April's single-family home sales in Palm Beach County rose a whopping 67.9 percent from a year ago, a surge that underscores the growing belief that buying a home now is a good bet.
There were 2,186 pending home sales in April, up from 1,302 during the same month last year. Townhouses and condo pending sales are up 39.2 percent, to 2,051 in April from 1,473 a year ago.
Pricing is reflecting the renewed buyer interest in home purchasing. The median sale price of a single-family homes in Palm Beach County is $210,100, up from $199,900 the same time last year and up 6.6 percent from March. The median townhouse and condo price is $88,636, up from $85,000 a year ago.
"Prices are climbing as demand increases and inventory levels decrease," said Bonnie Lazar, 2012 President for the Realtors Association of the Palm Beaches. "Inventory is slightly below normal levels, dropping over 50 percent from the previous year."
April single-family home inventory declined 55.5 percent to 5.7 months from 12.8 months a year ago. It was the same story for townhomes and condos, which fell 53.8 percent to 5.5 months from 11.9 a year ago.
Lazar said that trend should mean continued growth in home sales and median prices.
The rising number of sales and shrinking inventory are no surprise to area real estate brokers and agents, who are seeing increased demand from investors and people who are ready to buy a home to live in.
"Since January, we've seen an upturn in activity, with the market going from stagnant to full-out go," said Douglas Rill, president and broker for Century 21 America's Choice in West Palm Beach.
"If people wanted to buy at the bottom, the party's over," Rill said.
And even the so-called shadow inventory of homes in foreclosure waiting to be released by banks hasn't affected the market, real estate agents say. That observation was echoed by Florida Realtors Chief Economist John Tuccillo, who recently said that banks are unlikely to flood the market if doing so would drive prices down and hurt the lender's profit. In addition, the slow pace of foreclosures winding their way through the courts means distressed properties come on the market intermittently.
"There's an extreme tightness in the market. And whatever comes on the market in foreclosure is gone in 30 days," said Scott Agran, president of Lang Realty in Boca Raton. "There's been a lot of people on the sidelines for years, and now they're making that decision to buy. We're already starting to see bidding wars. It's tight inventory and a huge demand that's creeping into the market."
Further limiting inventory: Very few new homes have been built in the past six years, Agran said.
Statewide, the median sales price for single-family existing homes in April was $144,350, up 10.2 percent from a year ago, according to data from the Florida Realtors. The statewide median price for townhome- and condo properties was $108,000, up 16.1 percent from April 2011. And again, pending sales are on the rise, up 38 percent for single-family homes and 25 percent for townhomes and condos from April a year ago.
"Pending sales are up dramatically, and inventory is still falling," Tuccillo said.
Home sales also picked up nationally.
Purchases of previously owned houses increased 3.4 percent to a 4.62 million annual rate, figures from the National Association of Realtors showed Tuesday in Washington.
"We are making incremental progress," said Millan Mulraine, a senior U.S. strategist at TD Securities Inc. in New York, who correctly forecast the sales pace. "People are becoming more confident about job prospects and about taking on mortgages. This is all positive for the economy."
Existing-home sales climbed to 4.26 million last year from 4.19 million in 2010. Demand peaked at 7.1 million in 2005 during the housing boom. In 2008, sales totaled 4.11 million, the least since 1995. Resales may rise to a 4.6 million to 4.7 million range this year and reach as much as 4.8 million in 2013, the Realtors group projected this month.
The median price of an existing home nationally climbed 10 percent to $177,400 from $161,100 in April 2011, Tuesday's report showed. It was the biggest year-to-year gain since January 2006 and reflected a seasonal mix in demand toward bigger houses and fewer distressed sales.
Purchases improved in all four regions.
Bloomberg News contributed to this story.
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