Hobe Sound Bucks the Trend and Sees an Additional 7% Decrease in Inventory
Inventory remains a problem for buyers looking for a new home these days in southern Florida. Just ask any of your friends who have been looking and you will hear the same story. We have been so spoiled over the past 5 years with excess inventory and options galore that buyers who remain very price conscious looking today are disappointed.
2011 has been an amazing year for further recovery and sales remain strong. It is going to be very interesting to watch where we go from here and because this business is so interesting it is why I enjoy what I do so much. Finding the right opportunity is not impossible as we have closed some amazing deals for clients over the past couple weeks that I cannot believe. Buyers just need to clearly, and I mean very clearly, identify their needs and be working with someone who will notify them immediately of the best deals and be ready to act lightening fast. One of the best deals I completed last week was a home in Delray that I showed to a client that was not ready to make a purchasing decision and I told them it would not last. It was an incredible opportunity that do not arise often in this market so I called a client who I thought may be interested. Within 2 hours the seller had a offer that was accepted and I was thrilled that my client grabbed a great deal.
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.
This report shows our home inventory “power rankings” with Juno Beach for the month ending December 1st. 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. The good news for buyers is we are seeing some increases in inventory levels and while they are no across the board we do have four of 5 communities showing and increase this month. So here are the inventory power rankings are the rankings for November;
#1 Juno Beach
#3 Palm Beach Gardens
#5 Hobe Sound down 7%
Overall inventory levels around the area went slightly higher with a median gain of 3% over the past thirty days and we start this months report with our 5th place finisher of Hobe Sound the only market showing a decrease. Inventory levels in Hobe Sound, unlike most areas, showed a decrease of 7% during November. As of December 1st we had 350 active listings compared to 375 on November 1st and we are now about 32% below our annual high back on February 1st. We are also well below the 514 units we had in inventory one 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 25 fewer choices than they did a month ago.
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