We have been telling you demand would soften over the summer and that is no surprise. As of July 15th, pending home sales dropped for the 3rd straight month. Down about 2% over the past 15 days, down about 8% over the past 30 days and down about 18.5% since April 15th. While pending home sales in the area may be down they certainly are not out. In fact, we are still 3.7% above the moving 12 month average and a more substantial 5.7% above year ago numbers. Sales are good considering there are few options out there for buyers.
Prices have been moving higher both in the single family and condominium market but we are seeing some stabilization. We are still about a week away from bringing you the latest median condo price numbers in the Northern Palm Beaches but look for them to stay flat over the past 30 days at $210,000. Limited inventory appears to be the driving force behind prices not falling too much this summer even with demand being sharply trimmed back.
Inventory remains the wild card in this market and it truly is critical. Down again today to another record low. Unlike the pending home sales numbers there is no good news to be had as everything when it comes to inventory is down and we mean across the board. Down 2% over the past 2 weeks, down 5% over the past 30 days, down 6.2% over the moving 12 month average and down 19.7% from year ago numbers. We do have new communities coming on-line later this year but they will be priced well above the resale market. Home prices should be moving higher in the Northern Palm Beaches as there simply is not enough available product to go around.
This summer presents the best buying opportunity for most as once the season hits demand should pick up and inventory will still be down. It is a recipe that whether you shake it, or stir it, means prices should be heading higher and higher. Always interesting, always fun.