Home Inventory Level in Tequesta down 4% as of October 1st
Almost everywhere one looks we find stabilization in the local real estate markets. The steep declines in inventory levels have abated. Interest rates have dropped and moderated after the Fed announced their decision to continue the current level of quantitative easing. Even the median home price increases have leveled off and while the year over year numbers look great we are not seeing much movement in the month over month numbers.
However, almost everywhere, is not the same as everywhere and some concern should be shown for the significant drop is home sales and corresponding increase in the absorption rate we have seen over the past couple months. While it still appears that the drop is sales is due more to the lack of well priced inventory the jury is still out on where we go from here in the great real estate recovery of 2013.
Home inventory is extremely crucial as it shows what buyers out shopping have to pick from. There are properties out there but many sellers are priced above the most recent comparable sales after reading about the huge price increases and thinking they will continue. Buyers often times are more concerned about some of the negative economic news we get bombarded with and do not want to overpay while visions of 2007 through 2012 are still dancing in their heads.
While interest rates have headed a bit lower the cost of owning a home has increased as prices have increased. Some see the market changing from a strong seller’s market back into one that may favor the buyer in coming months. Just look at a recent survey of Realtors® 86% of whom during the 2nd quarter thought it was a great time to sell. Those numbers changed during the 3rd quarter to 72% or a decline of 16%.
The market changes daily and the effect of these changes can have a significant impact on any real estate decision you may be contemplating. So let’s take an in depth look at changes in the home inventory level in Tequesta and the surrounding areas since our last update on September 12th. Last month in this report we reported declines in the number of available homes but is was very slight at 1.54%. Now let’s take a closer look at what has transpired since then and how it will affect buyers, and sellers, as we move forward.
This report shows our home inventory “power rankings” for the month starting on October 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 September 30th.
#1 Tequesta – down 4%
#2 Juno Beach – up 3%
#3 Jupiter – up 4%
#4 Hobe Sound – up 5%
#5 Palm Beach Gardens – up 5%
Last month we had 40% of our reporting municipalities show further declines in available home inventory with another 40% showing an increase. Overall the northern Palm Beach County region showed further inventory declines with the average falling by another 1.54% and the median decrease weighing in with no change. This month we have 80% of our communities showing further declines in inventory which is certainly a bearish sign for sellers. Overall we had an average decline of 2.6% as we see the continued stabilization in this metric. We end this months report with the home inventory level in Tequesta where inventory levels decreased 4% after remaining unchanged the previous month. A shining start in this months report the home inventory level in Tequesta is at another new multi-year low. As of October 1st, the total home inventory level in Tequesta sits at 167 which is down 7 units from the 174 we had on September 1st. With these levels we find ourselves with the home inventory level in Tequesta down 13% from the 12 month average that now sits at 191. Looking at the “seasonal” factor we are also down 20% from the home inventory level in Tequesta that we reported on October 1st of last year.
Keep a very close eye on our upcoming sales report to see where the tug of war between sellers and buyers goes from here.
Fins up until November ………