Home buyers in the Northern Palm Beaches have been busy. Not as busy as they were in 2015 but that was a record breaking year. Last year during the 1st quarter they snapped up 679 single family homes in the region at a median sales price of $379,900. This year they didn’t buy as many homes, a total of 625 during the same period, but the median sales price is up to $436,500.
Living in paradise is once again getting to be an expensive proposition. As of today, pending home sales are up again for the 3rd straight month. Up 5.3% over the past month with the majority of that increase coming since April 1st. Buyers have more choices as inventory continues to increase, but are we finally seeing that growth coming to an end? The number of homes available for sale is up again over the past month for the 7th straight month to the highest levels we have seen since June of 2014. However since April 1st we have actually seen inventory levels decrease. Not by much but still a change to a long term trend and something to watch closely now that another season is coming quickly to an end.
With inventory levels at 22 month highs and prices rising in both the single family and condominium markets what comes next? If prices are going to remain on this upward trend buyers need to keep buying. So far they have and over the past 2 weeks they even picked up the pace. If you are buying you must remain patient for the right opportunity and be ready to react quickly when the perfect home presents itself. You must know the numbers in that neighborhood and you must make quick decisions or somebody else will beat you to the punch.
If you are selling, you need to know what is going on in your neighborhood or development. We are seeing very high inventory levels come back in many areas and it can usually be blamed on sellers with prices still ahead of current market value. In the end your home is worth what a willing, ready and able buyer will pay so marketing is more important than ever. You must change from a home owner to a home seller and there are big differences between the two. Especially in a market with inventory levels as we are seeing today.
It’s going to be a great spring and summer ahead. Know your numbers, have a game plan, work with a broker who will work with you, and you can win. After all isn’t winning what it’s all about.