Palm Beach Gardens Inventory Level Decreases 3% in July
August is going to be an interesting month. With the local housing scene continuing to show strength and the national economy still struggling one thinks a convergence is on the way. How long can housing continue on it’s merry way without a substantial change in the economic fundamentals? Interest rates continue to drop and this week the United States Treasury dropped hints about negative yield bonds which we have brought up before in this column.
Home sales on a national level for both new and resale properties fell in June while we reported here strong local increases in 4 of our 5 municipalities. And we are talking substantial gains with an average increase of 23.4% over May numbers. We keep searching for a change in fortune but as of now we appear to be bucking every trend out there and the market is full steam ahead with strong sales, shrinking inventory and higher prices. August is going to be an interesting month.
There is no way this rebound is going to be a straight line up with big price moves unless the economy picks and at this point it appears anemic at best. Add in the fact that there are so many homeowners who are still underwater on their mortgages which is just one reason inventories have continued to decline. The fact is there are many, many people who would love to sell their home but are unable to because of the check they would need to bring to the closing table. So after 4 straight months of inventory declines let’s see where things stand as of August 1st in the northern Palm Beach County region.
This report shows our home inventory “power rankings” for the month ending July 31st. 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 July;
#1 Juno Beach –
#2 Tequesta –
#3 Jupiter –
#3 Palm Beach Gardens – down 3%
#5 Hobe Sound – up 1%
This report is another feather in the real estate market get stronger cap. During July in northern Palm Beach County the average inventory level dropped another 3% adding more upside pricing pressure. This month we next move to Palm Beach Gardens in a tie for 3rd position reporting in with their 5th straight monthly decline. As of August 1st total inventory sits at 817 units down 25 from the 842 available on July 1st. With these levels we also find ourselves down 16 % from the 12 month average that sits at 967 and a very strong reduction of 19% from the 1,007 level we stood at one year ago.
August is going to be an interesting month…………..