Buyers reacting to more house purchase options
With pending home sales jumping 15% in January we now add a 4% jump in home inventory in Palm Beach Gardens and the surrounding communities. Good news that the market needs if we are to see prices move higher over the next few months.
While local home buyers have more options than they did a month ago, home inventory levels in the Northern Palm Beaches still lag year ago numbers by almost 10%. After the months of straight decline we are starting to pull even with the 12 month moving average so options are improving. As we reported two days ago, buyers have responded with pending home sales moving strongly higher as of February 1st.
It is still about a week before we publish the latest local single family home sales and median price updates but don’t look for great news. The market has been in a a funk, we have more than once called it schizophrenic, and the rest of this season is going to be fun to watch unfold. Strength in the latest pending home sales and today’s inventory news are steps in the right direction.
Buyers still fear another replay of what happened in 2005/2006, but in most areas and developments prices still lag those lofty market highs by 25% to 30%. Many sellers’ are still intent on asking higher prices after reading, and hearing, misleading information on the current strength of the market. But lately we are seeing many more sellers lower their prices in order to attract buyers. We have seen developers offering $75,000 Tesla’s to entice buyers. We have seen sellers offer to throw in a Ferrari with a value over $100,000 hoping it is enough to make their property stand out. Some offer higher commission and bonuses thinking this may assist in driving brokers to think more about their financial gains than getting their clients the best value.
No matter what way you slice the cake, the real estate market in the Northern Palm Beaches is fun to watch, And interesting. If you are buying, or selling, seek knowledge and make informed decisions. If you don’t you may end up paying too much, or having the next stale listing on your street. There are good properties out there that can be purchased at a fair price you just need the right game plan to find them.
Paradise Sharks Real Estate