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?
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………..