Palm Beach Gardens Inventory Level Declines 6% in June
Multiple offers, quick sales and rising prices have become the rule here in south Florida as the amazing real estate rebound of 2012 continues. The shortage of quality single family homes continues and absorption rates have declined to levels we have not seen in about 7 years. Inventory levels throughout the north county region continue to drop. And we are talking about very significant reductions.
Many buyers are finding out just how competitive this market is when out shopping for a new home. When a home that is properly priced hits the market, especially in the sub $400,000 price ranges, it is snapped up immediately and I mean in days if not hours. Acting quickly on new opportunities has not been this important since early 2005 before the bloom started falling off the rose. Home builders are raising cash to buy property as sales in their subdivisions have skyrocketed. Friday I happened to be in a meeting with the regional sales manager for a national builder who reported that sales in one of their northern Palm Beach County subdivisions are up 70% year over year. Very amazing numbers indeed.
Finally after seven years all of the signs are pointing in a positive direction and prices are on the rise. How dramatic this rise may be is yet to be determined and certainly locational factors will be very important. In Jupiter May 2012 sales were up 22% over the same month in 2011. Inventory levels are down 19% during the same time span. The free market is very efficient and when demand increases and supply decreases there is only one possible outcome over the long term and that means prices are on the rise once again.
This report shows our home inventory “power rankings” for the month ending June 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 June;
#1 Hobe Sound –
#2 Jupiter –
#2 Juno Beach –
#2 Palm Beach Gardens – Down 6%
#5 Tequesta – Down 5%
This current report is in fact again very bullish with each of our reporting municipalities showing a decrease in home inventory levels for the 4th straight month. Buyers once again are faced with fewer choices and much of what is out there is either in poor condition or over-priced. During June in northern Palm Beach County the average inventory level dropped just about 6.4% adding more upside pricing pressure. This month we move next to Palm Beach Gardens who shared 2nd place with two other municipalities and weighs in with another solid 6% decrease in inventory over the last thirty days. As of July 1st total inventory sits at 842 units down 51 from the 893 available on June 1st. With these levels we also find ourselves down 14% from the 12 month average that sits at 983 and a strong reduction of 22% from the 1,078 level we stood at one year ago.
Prices heading higher but how high and how fast remains the question…….