Last month at this time we reported decreases in the inventory levels in most of the northern Palm Beach County market areas. As the real estate market continues to recover it is important that we start to see these declines continue. Sales remain strong and there is truly a shortage of quality homes in the below $400,000 price categories. Working with numerous clients trying to find a home is difficult and we are often faced with multiple offer situations. Local inventories are full of homes that have quality issues and many of these are hard to sell and therefore skew the numbers. So what has happened to inventory levels over the past month?
This month in Tequesta inventory levels have moved in a positive direction and at a very nice clip. We are now at the lowest levels we have seen over the preceding 12-month reporting period with another significant reduction over the past 30 days which is wonderful news. The net inventory of real estate currently for sale on our local Multiple Listing Service (MLS) in Tequesta now stands at 289 down 27 units from the March 1st level. Net inventory is defined as all of the property actively being marketed that does not have a contract outstanding either as a contingent or pending listing.
As we see inventory levels decrease buyers have fewer choices and typically pricing pressure will be to the upside. Each home is different and has it’s own set of specific metrics that need to be explored when determining current market value. That being said, buyer’s have 27 fewer choices today than they did a month ago so it is a great time to take advantage of a great combination on inventory and interest rates which are still at remarkably low levels. Watch for increased loan costs on FHA loans coming in April, which can have a significant expense on future sales. The government is gearing up in an attempt to get out of the mortgage business, which will take some time and will be very interesting to watch moving forward.
We take great pride here at “Results Driven Real Estate” in providing our clients the very highest level of service available in the industry. If we can be of assistance in any way with questions you may have about your real estate goals throughout Palm Beach and Martin Counties please feel free to contact me at your convenience for a complimentary consultation.
Always at Your Service,
Tom Priester e-PRO
“Results Driven Real Estate”
Keller Williams Realty