Another big drop in Palm Beach Gardens home inventory

7th straight monthly drop means buyers must be prepared

OK I admit it. Last week when the Dow Jones Industrials were down over 1,100 points a few short minutes after the market opened my thoughts raced to 2008. If anyone tells you the stock market and the real estate market are not related in any way, they are. And in an area like the Northern Palm Beaches it is a big, significant way. A huge portion of the homes and condominiums here in the Palm Beach Gardens area are second homes, third homes, investment properties. Consumer confidence is closely tied to the stock market and volatility is not good if one’s goals includes climbing real estate prices.

Pending for Blog
We are just weeks away from kicking off what is shaping up to be another record breaking “season” here in paradise. Try finding a seasonal rental near the beach here in Jupiter. It’s not easy and it’s going to cost you a lot of money. More than last year. Summer traffic in our favorite restaurants was solid. Just the other day we were talking about the good old days when summer specials were everywhere. Not this year.

If you are hoping for real estate prices to move higher the market is perfectly positioned. As of this morning, Palm Beach Gardens home inventory levels, and those in the nearby communities have dropped again. For the 7th straight month. These are significant numbers we are talking about. Big numbers. Down 3.7% over the past 2 weeks in the Northern Palm Beaches. Down 4.1% over the past month. Down 19% from year ago numbers. Down 24% since this slide began back in February. Buyers have few options and when good opportunities hit the market they go quickly. Buyers not properly positioned to write contracts on the right house in the right location will be left in the dust.

The good news for buyers, besides the potential for more stock market volatility ahead, is the summertime blues. Pending home sales are down. As of today they are down 7% over the past 30 days. However, they are a full 15% above last year at this time when buyers had much more to choose from. But time for buyers to land good deals may be short. The summertime blues will move into early fall but once the snowbirds flock back watch out.

It is getting interesting and anybody who cares about the effect real estate prices, and stock prices, have on their overall financial situation needs to watch closely. Very closely. We are expecting strong demand from our seasonal visitors and with inventory levels this low explosive moves in prices could be headed our way. But watch the stock market volatility, interest rates that caused some of the volatility, as hurdles that may get in the way. Keep informed and be careful.

Fins up…..

Tom Priester
Principal Broker

Paradise Sharks
561.308.0175
info@paradisesharks.com

#palmbeachgardenshomeinventory

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Tom Priester

After spending years among the top individual performers at one of Palm Beach County’s largest and most successful real estate brokerages, Tom Priester knew there was another way to do real estate. A better way. Real estate services focused on the customer. Like the old days when the customer truly was #1. He tired of listening to why he should be going out to have his customers sign one sided buyers’ brokerage agreements. He tired of hearing how he should be selling customers why paying higher commissions, like 7% and 8%, was to their benefit. He tired of hearing how he should sell his clients on why they should be paying hundreds of dollars in additional “transaction fees”. The business had slid way too far from being focused on the customer. His customer. So he decided the time was right to be different…..by design. To start his own unique boutique real estate firm truly focused on his customers. They will now have access to a process focused on them. Only the best marketing techniques to sell their homes. No cutting corners. Commission structures based on his clients needs not his. Paradise Sharks was born out of Tom’s passion to return this business to the customer. Where it belongs. If you want a real estate experience that benefits you, just give Tom a call at 561 308-0175 or send him an e-mail at tom@paradisesharks.com. You can always pay more and receive less but that just would not make any sense. Would it?

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