Frustrated home buyers in the Northern Palm Beaches have not had much to cheer about lately. The inventory for them to choose from has dropped about 15% in a few short months. Interest rates have moved pretty much straight up over the past 2 months and are almost a half a point higher over that period. The good news is the market is shifting in their favor, right now just a bit. But as summer officially kicks off this Sunday we will see demand wane and motivated buyers having better opportunities.
As of June 15th, total inventory in the Northern Palm Beaches is unchanged over the past 30 days. After 4 months of a straight line decline the inventory level is starting to stabilize. We have dropped ever so slightly over the past two weeks, about 1.5%, but the big slide seems to have ended. We still sit at the lowest inventory levels we have seen for years and there is little reason to thing that number will increase significantly unless demand starts to fade. It is indeed going to be an interesting summer.
Pending home sales, as of today, are down in the Northern Palm Beaches by about 8% over the past 30 days. Sales are going to slow. It is indeed going to be an interesting summer. Compared to year ago numbers pending home sales are higher by over 10% with available inventory down by a very significant 17%. Prices have been on the move higher. We reported just 6 days ago that the median single family home in the area has increased in value by 15% since February. That is a big number. We will be bringing you our monthly condo valuation report in the coming days but watch for increases there as well.
If we do not get derailed by a macro-economic event this market seems to have room to run. It’s going to slow down for a few months but with inventory at multi-year lows anything can happen with prices. But there are signs they too may be stabilizing. It is indeed going to be an interesting summer.
Paradise Sharks Real Estate