Buyers Frustrated as Home Inventory in Tequesta Drops Another 6%


Home Inventory in Tequesta Down 6% in April

Another month has rolled by and frustrated home buyers are on every corner in south Florida. Finding a home is not an easy task and even a well defined game plan needs a bit of luck to meet with success. The plain truth is there just are not enough homes out there to meet current demand and prices continue to move higher. This week we had a client arrive ready to start their south Florida life and is a great example to show you exactly what it is like on the front lines.

Their needs were clearly defined, both doctors with two young sons and the school district already decided after meetings with school staff were completed. Their budget is generous, over $500K, and they simply required a 4 bedroom home and would prefer newer construction. Believe it or not after ruling out private club communities and their associated fees we had a total of 5 potential homes built in 1990 or later. After viewing all five we were really down to one and made an offer that was higher than any recent sale in the community. We felt is was a strong offer but the seller decided not to even counter. Being a new listing in a market with limited inventory and rising prices they are not in any hurry. Frustrated, you bet but we already are looking for the next new listing and will be in line with others facing the same dilemma.

Prices are going up in every market segment with pending sales, existing homes sales and new home sales all remaining very strong. Price increases are being driven by inflation on materials which effects new construction and the lack of inventory in the resale market. Interest rates were down again this week, down 5 basis points to 3.52% the lowest rates we have seen in almost 4 months. However, if one does not have a stellar credit history they will soon find that qualifying for a loan has become more and more difficult.

Every month at this time we take a closer look at changes in home inventory in Tequesta and the surrounding areas. As you may recall last month at this time we reported decrease in inventory in 80% of our reporting municipalities adding to the frustration levels for the buyers hoping to get into their new home by summer. So how did the market react and just what did happen to inventory over the last 4 weeks?

Tequesta

This report shows our home inventory “power rankings” for the month starting on April 1st. These rankings are set up so the top rated municipality will be the one who shows the highest overall reduction in inventory levels. Since it is these reductions, when coupled with stronger sales, that 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 April

#1 Tequesta – down 6%
#2 Palm Beach Gardens – down 4%
#3 Juno Beach – down 2%
#4 Jupiter – down fractionally
#5 Hobe Sound – up 1%

During March in the northern Palm Beach County region the average inventory level decreased 2.2% with the median decrease weighing in at 2%. Once again nothing dramatic to the downside but more pressure on pricing as buyers have even fewer options this month. We next move in his months reports to home inventory in Tequesta where inventory levels decreased by 6% over the past four week period. As of April 1st, total home inventory in Tequeta sits at 204 which is down 12 units from the 216 available on March 1st. With these levels we find ourselves with home inventory in Tequesta down 5% from the 12 month average that now sits at 215. Looking at the “seasonal” factor we are down 25% from the level of home inventory of 273 in Tequesta that we reported on April1st of last year.

Buyers must have a well defined game plan to succeed in todays market.

Fins up until May………..

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Tom Priester

After spending years among the top individual performers at one of Palm Beach County’s largest and most successful real estate brokerages, Tom Priester knew there was another way to do real estate. A better way. Real estate services focused on the customer. Like the old days when the customer truly was #1. He tired of listening to why he should be going out to have his customers sign one sided buyers’ brokerage agreements. He tired of hearing how he should be selling customers why paying higher commissions, like 7% and 8%, was to their benefit. He tired of hearing how he should sell his clients on why they should be paying hundreds of dollars in additional “transaction fees”. The business had slid way too far from being focused on the customer. His customer. So he decided the time was right to be different…..by design. To start his own unique boutique real estate firm truly focused on his customers. They will now have access to a process focused on them. Only the best marketing techniques to sell their homes. No cutting corners. Commission structures based on his clients needs not his. Paradise Sharks was born out of Tom’s passion to return this business to the customer. Where it belongs. If you want a real estate experience that benefits you, just give Tom a call at 561 308-0175 or send him an e-mail at tom@paradisesharks.com. You can always pay more and receive less but that just would not make any sense. Would it?

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