Home Inventory Level in Palm Beach Gardens up 1% as of November 1st
One week until we all hopefully take at least a couple days to spend with family and friends and give thanks for all we have been blessed with. Anyone who has owned real estate in south Florida is probably thankful as their property is in almost all cases worth more this year than it was in 2012.
In our last articles published back on November 10th we reported that absorption rates throughout the north county region had increased again mainly do to sales levels that continued to fall. While we are a few days away from reporting final October sales numbers it is looking like we have had a very nice rebound with sales once again picking up. The number of homes under contract in Palm Beach Gardens and the surrounding municipalities is down slightly as on November 15th with a total of 845 properties waiting to close which is down 4 units from the October 15th numbers.
Housing inventory numbers have been rising for about three months and it appears that buyers are reacting with sales certainly stabilizing if not rebounding but we are getting a few days ahead of ourselves. Interest rates had been increasing which reduces buying power for those borrowing money to fund their home purchase. Another good sign for the market is after being up sharply for 2 straight weeks so far this week the market has taken back much of those gains with average overnight rates on a conforming 30 year mortgage down sharply to 4.30%. Todays rate is down a full 21 basis points from where we stood last week at this time.
Each month at this time we take a deeper look at home inventory levels in Palm Beach Gardens and the neighboring communities. These numbers have been showing nice increases over the past three months. If we see this trend continuing it means buyers will have more options and should assist, along with lower rates, in providing us higher sales numbers in the coming months. 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 October 23rd. Last month in this report we reported inventory increases in 80% of our towns and villages with the average inventory level moving higher by 2.6%. 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 November 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 October 31st.
#1 Juno Beach –
#2 Hobe Sound –
#3 Palm Beach Gardens – up 1%
#4 Jupiter – up 5%
#5 Tequesta – up 11%
Last month we had 80% of our reporting municipalities show higher inventories in available home inventory with the average moving higher by 2.6% and the median increase weighing in at 4%. This month we have 60% of our communities showing further increases in inventory so buyers will have more properties to choose from. Overall we had an average increase of 3.3% which was heavily weighted by a large increase in Tequesta. The median increase was only 1% which more accurately reflects what we see in the overall market. We move next in this months report to the home inventory level in Palm Beach Gardens where inventory levels increased slightly by 1% after the previous months increase of 5%. As of November 1st, the total home inventory level in Palm Beach Gardens sits at 701 which is up 10 units from the 691 we had on October 1st. With these levels we find ourselves with the home inventory level in Palm Beach Gardens still down 9.5% from the 12 month average that now sits at 772.5. Looking at the “seasonal” factor we are still down 19% from the home inventory level in Palm Beach Gardens that we reported on November 1st of last year.
Lower interest rates and more choices for today’s buyers could provide the boost we need to turn around local sales that had flattened.
Fins up until December ………