Jupiter Home Inventory Down 1% in September
As we continue to see struggles in the overall economy, real estate sales have remained strong with inventory remaining the #1 concern among buyers hoping to find the perfect home now that prices have finally started to move higher. The lack of quality, well priced homes is more than just talk, it is a real problem for local Realtors® trying to assist their clients in today’s market. Many economists are afraid the strength in the real estate sector is not spreading to other segments of the economy. With only 29 days left until the election the next administration will have it’s hands full stimulating things with job creation a big concern.
There is no doubt that if other segments of the economy do not start seeing improvement that the robust real estate market may not have much further to run at this pace. The FED has stepped in with a new round of Quantitative Easing and the hope is this influx of cash will help other areas of the economy. How effective this will be will be very interesting to watch.
So after 6 straight months of inventory declines let’s see where things stand as of October 1st in the northern Palm Beach County region.
This report shows our home inventory “power rankings” for the month ending September 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 continue to move prices higher we want to rank those accordingly. So here are the inventory power rankings are the rankings for the month of September;
#1 Jupiter – down 1%
#2 Juno Beach – unchanged
#3 Palm Beach Gardens – up 1%
#3 Hobe Sound – up 4%
#5 Tequesta – up 6%
During September in the northern Palm Beach County region the average inventory level increased for the 1st time in 7 months with an average increase of 2% and a median increase of 1%. While the increases are not large it does signal a change in trend and an important crossroad that needs to be watched very closely. This month we next move to Jupiter home inventory that showed our only decrease during the month of September. In Jupiter we still have not seen an increase of inventory since our report in February which is a very bullish sign indeed. As of October 1st, total Jupiter home inventory sits at 829 units which is down another 12 units from the 841 available on September 1st. With these levels we also find ourselves with Jupiter home inventory down 16% from the 12 month average that sits at 965. Looking at the “seasonal” factor we are also down 18% from the level of Jupiter home inventory that we reported on October 1st of last year.
Keep in mind that the quality of inventory plays a crucial role in sales and absorption rates so looking deeper into the homes that are out there for consumption is important. Let’s take a look at the largest subdivision in the area to give you a better understanding of the current market. Looking back 90 days there have been a total of 29 single family home sales in Abacoa with a median sales price of $436,100. As of this morning, we have a total inventory of 34 Abacoa homes that are not under contract. From an inventory perspective we have just slightly more than a three month inventory which is the top end of what we consider a seller’s market teetering on the edge of a balanced market. But, and this is the problem, the median list price of the homes available in Abacoa is $504,450 or 16% above the median sales price. This is a rather large spread and one that has been growing over the past couple months. To keep sales moving one of two things needs to happen; buyers pay more or seller’s need to lower their expectations.
Until next month…………