Home Inventory in Hobe Sound Up Another 1.4% in October
Anyone who has been out looking for their perfect home can tell you that home inventory in Hobe Sound and the surrounding communities isn’t anything to shout about. After significant drops in total inventory over the first seven months of this year we have seen a shift. Inventories have been stagnant with a slight pressure to the upside and each month at this time we want to bring our readers the latest numbers as it effects home prices for everyone.
With inventory low sellers have started to price their homes at higher levels and either buyers are not convinced it is time to chase a property at a level that may not appraise or demand has retracted. Even banks are getting into the practice of overpricing their REO listings and in some price categories this strategy is working. Fannie Mae’s lending program HomePath does not require an appraisal so it truly is what the market will bear. This is designed to drive prices up in the entry level housing market and it will be interesting if this trickles up much in the same way the current recovery started with investors snapping up the lowest priced properties.
Let’s look at one new bank owned property in Jupiter’s Riverwalk development to give you a look at the “new” bank pricing. Riverwalk is a medium sized community of two story frame town homes with very low association fees so investors were driven here for great returns. Six days ago Deutsche Bank listed a 3 bedroom 2 1/2 bath unit for $134,900. They have put in some tile flooring and stainless steel appliances but it is an interior unit in average condition. Over the past 90 days there have been 4 sales in the community ranging in sales price from $79,000 to $127,900. Understand the $127,900 was a traditional sale of an end unit that had been totally remodeled with custom cabinetry and granite tops in the kitchens and the bath. Very high level tile was laid on the diagonal…..the list goes on. After that the next highest priced sale was at $109,900 that was another bank owned listing that was very comparable to the bank owned unit listed at $134,900. It was listed on October 4th.
The reality is there is no inventory in Riverwalk and this is the only available unit at this moment. But for two similar units in the same community listed 22 days apart the “new” price is a 33% increase. Will the market react and snap this great bank owned foreclosure “opportunity” in short order? My bet is no but the banks are hoping this strategy will put upward pressure on pricing and time will tell us the outcome.
After 6 straight months of inventory declines our last report had inventory increasing or staying flat in three of our four reporting communities. Let’s take a closer look at changes in home inventory in Hobe Sound and the surrounding areas over the past 30 days.
This report shows our home inventory “power rankings” for the month ending October 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 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 October;
#1 Jupiter –
#2 Tequesta –
#2 Hobe Sound – up 1.4%
#4 Juno Beach – up 4.5%
#5 Palm Beach Gardens – up 6.3%
For the first time in many, many, many months all five of our reporting communities experienced an increase in home inventory during the same month. During October in the northern Palm Beach County region the average inventory level increased 2.88% with a median increase of 1.4%. Certainly nothing dramatic to the upside but with sales down and absorption rates up over the past 30 days another sign of the market cooling a bit. And keep in mind it is in to this market seller’s, including banks, are raising asking prices. This month we next move to home inventory in Hobe Sound who weighs in with a 2nd place tie. As of November 1st, total home inventory in Hobe Sound sits at 340 units which is up 5 units from the 335 available on October 1st. With these levels we find ourselves with home inventory in Hobe Sound down just 1% from the 12 month average that sits at 342. Looking at the “seasonal” factor we are also down 9% from the level of home inventory in Hobe Sound that we reported on November 1st of last year.
The market metrics are showing the incredible rebound we have experienced to date in 2012 may be taking a breather. Where things go from here will certainly be effected by who is anointed as our next President in 5 days so remember to get out there and cast your vote.
Until next month…………