Palm Beach Gardens Inventory Level Down 5% Last Month
April passed quickly by and brought with it increased activity from the investor market and their surging demand for lower priced opportunities. Ever so slowly the change from a bear market to a bull market continues to show momentum in South Florida. Investors are making up about 1/3 of the current market and their appetite continues to grow with prices being driven much higher in many investment grade communities. Almost 100% of these transactions are cash deals and end up with multiple offers being presented within a day or two of the listing hitting the market. Inventory levels in this market segment remain challenged with a demand that does not appear to be able to be fully sated.
Another third of the market is made up of first time homebuyers and those who qualify for today’s remarkable interest rates (down again this week to another record low) are having fewer choices than over the past few years. Almost 80% of all Realtors believe prices will not further decline with a strong majority of this group predicting prices are finally on the rise; fueled mainly by demand from the investor and entry level segments. Kind of a trickle up recovery that continues to gather steam throughout southern Florida.
Above these two market segments we see continued strengthening of demand for single family homes under the $450,000 threshold. While the monthly recap numbers show overall declines in inventory levels throughout the north county region we are seeing some added inventory in the $300,000 to $450,000 range that does not seem to get “snapped” up as quickly as it would have a few weeks ago. Perhaps some of this is price related, perhaps some is condition related, but watching inventory levels continues to be one of the most important metrics we can follow.
This report shows our home inventory “power rankings” for the month ending April 30th. These rankings are set up so the top rated municipality will be the one who shows the highest reduction in inventory levels. Since it is these reductions, when coupled with stronger sales, which will move prices higher we want to rank those accordingly. So here are the inventory power rankings are the rankings for the month of April;
#1 Tequesta –
#2 Palm Beach Gardens – Down 5%
#2 Juno Beach – Down 5%
#4 Jupiter – Down 2%
#5 Hobe Sound – Down 1%
This current report is in fact again very bullish with each of our reporting municipalities showing a decrease in home inventory levels for the 2nd straight month. Buyers again are faced with fewer choices and much of what is out there is either in poor condition or over-priced. During April in northern Palm Beach County the average inventory level dropped just about 4% adding more pressure. This month in a tie for 2nd place is Palm Beach Gardens who weighs in with a solid 5% decrease in inventory over the last thirty days. As of May 1st total inventory sits at 943 units down 45 from the 988 available on April 1st. With these levels we also find ourselves down 8% from the 12 month average that sits at 1,020 and a reduction of 20% from the 1,172 level we stood at one year ago.
I have known a number of bulls in my time and their work is never done….