Absorption Rate in Palm Beach Gardens Moves Lower by 12%
The period between Thanksgiving and New Years always seems to be a bit quieter than others during the year. Holiday celebrations, time spent with family and friends, goal setting for the new year and other reflections do take away from the normal routines of our every day lives. As we wind down the few remaining days of 2013 we want to thank each of you who has supported our efforts and we look forward to keeping you informed in the new year.
A year ago it was clear that a major shift in the local real estate market was underway and the recovery continues to this day. Sometime after the first of the year we will do a complete recap of this year and projections for next so for now let’s just say it has been a very good year. Looking just at single family home sales in Jupiter through the 1st 10 months of this year they were up a whopping 16% from 2012 numbers. Median prices during the same period are up almost 13% from $323,500 to $365,000. Luxury sales over $1,000,000 have soared almost 21%. Again, all in all a very good year.
I just received the news flash on my phone that over 200,000 jobs were added in November driving the unemployment rate down to a 5 year low and it looks like the stock market is ready to climb to new record highs. Balance that with our national debt and an approaching ceiling and other not so rosy items on the economic front and it is hard to say for sure what direction the value of your south Florida home may be heading.
For most of us a home is the biggest single purchase we will make in our lifetime. The value of that home is a cornerstone of our personal economic stability and that is why we spend so much time keeping you up to date on the latest data affecting the local markets. We want our clients, both buyers and sellers, to make the most well informed and knowledgeable decisions that they can. Knowledge is power and we want each of you to have that power. Our goal for 2014 is to raise the bar even higher and raise the value of real estate services throughout the region. If you are not getting the most bang for your buck then something is amiss.
For the last time in 2013 we are pleased to bring you the latest absorption rate data for Palm Beach Gardens and her neighbors. This metric is very important to both buyers and sellers as it should impact what they either offer for, or list their properties at. Again, knowledge is power so keep in mind that you should understand the absorption rate for your particular home type or neighborhood as it can be completely different than the overall rate for the town in which you reside. When selling you need to know the higher the absorption rate the more aggressive you will need to have your property shine above the competition. Conversely when the rate is falling as a buyer you may need to make a stronger offer to be successful.
We base our number on how long it will take the market to absorb all of the homes on the market if sales levels over the prior 30 days remain constant and no other listings are added to the market. We look at the absorption rate which includes pending and contingent listings as it gives us a truer picture than the inventory level which eliminates those listings. The absorption rate will always be higher than the inventory level. So let’s check in on the current absorption rate in Tequesta and see what has changed since the last numbers we published on November 8th.
Absorption rate in Palm Beach Gardens – 6.76 months down from 7.68
Absorption rate in Jupiter – 7.32 months up from 7.08
Absorption rate in Hobe Sound – 8.49 months up from 6.73
Absorption Rate in Tequesta – 9.00 months down from 10.14
Last month at this time we reported that 75% of our reporting municipalities showed increases in their absorption rates with the average absorption rate sitting at 7.91 months and this number has been trending higher for a couple months. This month we have 50% of our towns and villages again show increases with the average moving ever so slightly lower to 7.89 months. This consolidation is a good sign but we still see some volatility depending on location.
We next move in this months report to Palm Beach Gardens where we saw a nice decrease in the absorption rate by about 12% which is a bullish sign for the market. A 16% increase in final sales numbers combined with an 2% increase in inventory levels dropped the absorption rate in Palm Beach Gardens to 6.76 months down from the 7.68 months we reported last month. With this decrease we remained below the 12 month average which sits at 7.58 months and further below our year ago numbers when we reported 9.2 months.
Overall the market remains bullish but consolidating. Fins up ………….