Biggest numbers since August set us up again for rising home prices
We have have needed some good news with a struggling real estate market here in the Northern Palm Beaches. Since early summer we told our clients’ who were looking to buy we felt their best opportunity to secure a great deal was before December and the return of the snowbird. We knew this years’ season was going to be big. Really big. Last winter was brutal and northerners made plans last year to return. Ask anyone looking for a seasonal rental. There is very little to be had and that has been true for months and months. New hotels have been opened. Harbourside Place is open for business. Only 12 more days before I can have a blood orange margarita at Tommy Bahama! December 1st is coming and so are higher real estate prices.
So the end of our “best buying season” is approaching and home buyers in the Northern Palm Beaches surprised us with a much stronger October than I would have bet on. As we reported yesterday, prices for the median single family home were up after three straight declines. Turns out it is easy to see why as sales were up, way up. Up 24% from the previous month. Higher than the 12 month moving average. Higher than 2013 numbers. Rock solid sales numbers with shrinking inventory finally bring us higher prices. The game board is set perfectly for prices moving higher over the season.
We knew this season was going to be busier than we have ever seen. We know many of those who had trouble renting a spot because of limited supply are going to see the future writing on the wall and decide the time to buy is now. Now when inventory levels just happen to be at the lowest levels we have seen over the past year. Luckily, we had a spike of inventory during October. The first time that has happened in 8 months. But it was a marginal gain and inventory levels are still poor. The “early bird” this season is much more likely to find a good deal in November than the the “late bird” will in March. What we have been telling our clients for months and months has come true. Just like a well executed game plan.
We started to see weakness coming to the market back in June and while we still have some reasons for long term concern, prices are probably going to be heading higher over the next few months. Since July single family home prices have been down; until October. The condominium market has fared much better but also leveled off a bit over the past three months. Watch for higher numbers ahead for all property types. Too much demand, too little inventory, too many snowbirds. We feel confident that at this point all signs point to your home being worth more in the spring. Always interesting, always fun.
Paradise Sharks Real Estate