Slight Drop in Palm Beach Gardens Inventory Brings 8th Straight Decline
Real estate sales throughout the north county area have had a strong showing for most of the year but we have seen some a little softening over the past couple months. In a week or so we will be releasing the final September sales numbers and while it is still a bit too early for accuracy we will probably see those trends continue. Sales in the $1,000,000+ price ranges are showing strength, interest rates remain at record lows, and inventories as we have been reported continue to shrink. Interesting times indeed on the front lines of the Palm Beach County real estate market.
Lower inventories and rising sales are a winning combination for upward price movement but that we have not experienced to date. The continued flow of foreclosures is the main culprit for the continued downward pressure on prices. Some feel banks are holding back inventory in an attempt to not flood the market and cause further pricing pressure and while this may be true we will have to wait and see if that actually transpires. One thing is certain they are letting a much higher percentage of foreclosures go to 3rd party bidders at the daily auctions here in Palm Beach County.
Last month we started our “power rankings” in sales and pending listings and this week we will start the same with inventory levels. As we work mainly with buyers our perspective is that higher inventory is a positive metric and will give top ranking to the municipality that shows the highest percentage increase in inventory levels. So here for our first ever inventory power rankings are the rankings for October;
#1 Hobe Sound
#4 Palm Beach Gardens Down 1%
#5 Juno Beach Down 5%
Overall inventory levels around the area were fairly stead over the past thirty days and we continue this months report with our 4th place finisher of Palm Beach Gardens. Inventory levels in the Gardens showed the second largest drop with about a 1% reduction in inventory compared to 30 days ago. As of this morning we have 998 active listings compared to 1,007 on September 1st which is about about 24% below our 2011 high back on January 15th. It is also the first time we have dipped below the 1,000 threshold since the real estate bubble burst. We are also well below the 1,299 units we had in inventory 1 year ago. 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 5 less choices today than they did a month ago so it is a great time to take advantage of interest rates which are still at remarkably low all time lows.
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 either 561 308-0175 or firstname.lastname@example.org for a complimentary consultation.
Always at Your Service,
Tom Priester e-PRO
“Results Driven Real Estate”
Keller Williams Realty