Home Inventory in Tequesta Hits New Record Low
With Palm Beach County schools starting up again next week it is still a little early to say that summer is over but we are getting close. No doubt it has been an interesting summer on the front lines of the local real estate market and the recovery continues to change on a daily basis. If you are a buyer shrinking inventory levels have made your task of finding a new home more difficult. While we have seen dramatic reductions over the past few months the free fall seems to have cooled with very slight reductions in inventory reported for the period ending August 1st.
If you are a seller, in most neighborhoods and market segments, you are in control and pricing a bit higher than the most recent sales is a prudent marketing strategy. Sales have held steady but vary widely in strength depending on location and price point. The luxury market remains strong which is a good sign while private club communities are still experiencing excess inventory. Over the past 30 days pending home sales in the area have declined pointing to lower sales numbers ahead.
To date 2013 has been a remarkable year with strong sales and prices rising and this strength has been a very important factor in aiding the overall economic recovery. Investor activity in the market has been red hot with a multitude of firms entering the fray snapping up opportunities and this activity certainly impacts first time home buyers who are competing for these properties. Just one organization, Blackstone, claims through their representatives to have already purchased over 2,000 homes in South Florida over the past 11 months. Confirmation with public numbers show these numbers are probably accurate and that is just one group.
Blackstone, like many other investment groups, are making a long term play in real estate with a long term buy and hold strategy. No doubt they see prices heading much higher from today’s levels and they are very aggressive in their purchases. Over the weekend they contacted me about a home I have listed that is already under contract with a firm cash back-up offer being put on the table. During the 2nd quarter they purchased at least 5 homes in the Palm Beach Gardens Evergrene subdivision which represents 29% of the neighborhood market. Truly quite remarkable.
So sales remain strong, still being driven by investors and many frustrated buyers are out there looking for the right opportunity. The number of new listings continues to drop as does the time is takes to sell a home in today’s market. Each month at this time we take a closer look at changes in home inventory in Tequesta and the surrounding areas. Last month in this report we reported further drops in available homes 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 August 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 July 30th.
#1 Hobe Sound –
#2 Tequesta – down 2%
#3 Jupiter – down 2%
#4 Palm Beach Gardens – down 1%
#5 Juno Beach – up 7%
Last month we had 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%. This month we again had 80% of our communities showing further declines in inventory but those reductions have slowed considerable with on average drop of 0.5% and a median drop of 2%. 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 Tequesta where inventory levels fell after the previous months slight increase to another record low. As of August 1st, total home inventory in Tequesta sits at 174 which is down 4 units from the 178 available on July 1st. With these levels we find ourselves with home inventory in Tequesta down 11.5% from the 12 month average that now sits at 196.58. Looking at the “seasonal” factor we are down 19.5% from the level of home inventory in Tequesta that we reported on August 1st of last year.
Going to be another interesting month ahead.
Fins up until September ………