Century 21 Tenace Realty
Web Site: www.pbgolfhomes.com
The State of Real Estate Palm Beach County
First Quarter 2011
Median Home Prices: The median price for a single family home according to Realist.com
fell significantly from 2010 median of $197,500 to $174,000 a drop of 12%.Our YTD
number was also down at $169,000. We will be tracking sales against the 2010 total sales of
13,303 units with the average being 1,108 per month. Through the end of February we are
down 2% to that average.
The median price for a condo also dropped significantly to $70,000 from $90,000 in 2011 a
drop of 22% .YTD numbers dropped to $73,000 from $ 90,000 in 2010. We will be tracking
sales against the 2010 total sales of 6,955 with the average being 579. Through the end of
February we are up 3% to that average. We believe that we are near the bottom with another
5% to 10% reduction potentially occurring due to the large number of pending foreclosures.
This new way of reporting actual sales to the 2010 average will give us a better measurement
of our status vs. comparing actual sales to last years sales for the same time period . The hope
is that this will help us all understand what the market of doing moving forward.
Company Sales Data: During the first quarter we had 687 sales compared to 525 for the
same time frame in 2010. That’s a 24% increase year to year. We continue to lead our area
with 132 of listings being sold last month alone. Performance matters to both sellers and
buyers and especially agents who work for Century 21 Tenace Realty....
Foreclosures: Our biggest story in the fourth quarter was the foreclosure fiasco. This fiasco
continued into the first quarter 2011. Major Lenders fired law firms who were handling their
foreclosures placing additional burdens and delays on the sale of foreclosed homes. We
currently have a total of 29,466 pending before the courts along with another 9,000 that are in
limbo awaiting for either paperwork to be released by fired law firms or awaiting assignment
to a new law firm for processing. Palm Beach County unfortunately has the dubious
distinction of having one in every 15 housing units receiving a foreclosure filing, the sixth
highest county foreclosure rate in the state last year. We still have 322,724 foreclosures cases
to go in the State of Florida. Foreclosures in Palm Beach County accounted for 28% of all
sales last year. Complicating this situation per Realty Trac is the number of foreclosed homes
being held on the bank books and not being marketed. Realty Trac estimates that 1,400,000
nationally falling into this category. The importance of all of this is the affect it has on
market prices. We hope that banks will help stabilize the market by only releasing to the
market the same amount as they sell.
Mortgage Availability: There are mortgages available to Palm Beach County residents but
with a few strings attached. According to Bob Clinton President-elect of the Florida
Association of Mortgage Professionals says “ home buyers with credit scores of 640 and
good jobs still can find conventional loans with down payments as low as 3.5% But a 25%
down payment comes with a prize interest rate and eliminates the requirements for mortgage
insurance. Wells Fargo is providing FHA mortgages to borrowers with credit scores as low
as 500. FHA David Stevens said banks credit policies were out of sync with the FHA and
artificially restraining home sales by as much as 20%. Under the new policy Well Fargo will
accept borrowers with credit scores of 500 to 579 if those borrowers can make a down
payment of at least 10%, gifted funds or other down payments assistance are not allowed. For
borrowers with credit scores of 580 to 599 they can put down 5% with the same restrictions.
Borrowers with credit scores of 600 or higher can make a 3.5% down payment. If you need a
mortgage please contact John Venne at 561-436-3708. He works out of our office.
Market Advantage: As of the end of 2010 short sales accounted for 32% of South Florida
Sales. With 42% of single family homes in South Florida are in negative equity positions. If
you’re thinking about selling your home and you are not in distress as a short sale or a
foreclosed home you have a market advantage. People do not want the hassle associated with
distressed homes any more and are seeking non-distressed homes. So now is the time to put
you home on the market ………………..
Inventory: As of the end of 2010 there was 10.1 month supply of single family homes and
10.7 month supply of townhouses/condos per the Realtors Association of the Palm Beaches.
They also reported that we had 20,161 homes for sale and the average time on market was
167 days for both single family homes and townhouses/condo being the same. These
numbers continue to improve as we approach the idea inventory level of 6 months supply. At
that point we will see property start to appreciate again.
Web Site Upgrade: During the first quarter we upgraded our web site to add membership
fees for both private and pubic golf course communities with homes in Palm Beach County.
A word of caution on these fees. They should be used a guidelines and not facts as they are
subject to change without notice. We placed them on the home page under the private and
public search options. We hope this will help people who want to live a golf course
community determine the community that fits their life style and financial recourses.
It Is What It Is: We have received feedback from some of you about our quarterly report.
Comments ranged from outstanding report to very depressing report. We continue to try and
report what is actually going on in our real estate market. Depending on your perspective
these reports can be viewed as the glass is half empty or half full. We try and highlight
positive areas but we will always report “It Is What It Is”.
Hope you found this report to be helpful and informative. It provides you with my opinion of
our real estate market here in Palm Beach County. I welcome your comments and
suggestions to improve this report moving forward. As always if you or someone you know
is either selling or buying in Palm Beach County I would appreciate your recommendation
and referral. I will treat all of your referrals as family and keep you informed as well.
Broker Associate, Realtor, GRI