Home Inventory in Palm Beach Gardens Drops for 5th Straight Month
Buyers throughout Palm Beach and Martin Counties continue to be frustrated with the lack of selection while out shopping for new homes. And options in most new home communities are not any better with limited lot availability and build times in some communities exceeding 12 months. Many sellers are opting to price their properties “ahead of the market” and we are seeing more and more price reductions as many of these sellers are not getting bites at the higher listing prices.
So much talk is surrounding interest rates and how they will affect the real estate market which everyone acknowledges has been the driving force behind the overall economic recovery in America. As inventory continues to shrink and prices continue to rise homeowners feel wealthier and allows some to move up into a larger home and means home related purchases like remodeling, furniture purchases, appliances and many others segments strengthen adding to the overall economic recovery.
After rising for 2 1/2 months straight this week interest rates have retreated and that is certainly welcomed news. As of this morning rates have pulled back for the 1st time in 10 weeks dropping 15 basis points from where we stood a week ago. Unless we see a reversal in the overall economic recover there is little doubt that sub 4% 30 year mortgages are a thing of the past and most economists see rates trending in the range between 4% and 5% for the foreseeable future. Even at rates higher than we have seen over the past 2 years today’s rates are still very attractive on a historical basis.
This week homebuilder confidence, in spite of higher interest rates, reached the highest level we have seen in over 7 years with the index rising for the third straight month. New home sales centers continue to see increased traffic with buyers who are more and more motivated due to shrinking inventory levels in the resale market.
On the front lines here in the north county region we are seeing the average list price of homes start to solidify with marginal gains over the past few months. The number of new listings continues to drop as does the time is takes to sell a home in todays market. Each month at this time we take a closer look at changes in home inventory in Palm Beach Gardens and the surrounding areas. Last month in this report we saw decreases in inventory in all of our reporting municipalities for the 2nd straight month so let’s take a closer look at what has transpired since then and how it will affect buyers as we move forward.
This report shows our home inventory “power rankings” for the month starting on July 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 that ended on June 31st .
#1 Juno Beach –
#2 Palm Beach Gardens – down 9%
#3 Jupiter – down 6%
#4 Hobe Sound – down 4%
#5 Tequesta – up 1%
In June we saw 80% of our reporting municipalities show further declines in available home inventory with only Tequesta showing a very slight increase. Overall the northern Palm Beach County region showed further inventory declines with the average falling by another 7.8% and the median decrease weighing in at 6%. When well priced new homes in good shape do hit the market we continue to see multiple offers in a very short period of time and sales prices above list prices are becoming more and more an everyday occurrence. We next move in this months report to home inventory in Palm Beach Gardens where inventory levels decreased for the fifth straight month to another new 7 year low. As of July 1st, total home inventory in Palm Beach Gardens sits at 657 which is down 67 units from the 724 available on June 1st. With these levels we find ourselves with home inventory in Palm Beach Gardens down 20% from the 12 month average that now sits at 822. Looking at the “seasonal” factor we are down 22% from the level of home inventory in Palm Beach Gardens that we reported on July 1st of last year.
Interest rates and inventory continue to be the driving factors in a market that still remains very, very strong with prices continuing their climb.
Fins up until August ………