Compared to one month ago, inventory levels in the Northern Palm Beaches have dropped another 1.1% and are down 8.4% from last year. This month’s drop took out the old low set way back on September 1st of 2015.
The good news is, it’s the time of the year we start seeing inventory levels rise in anticipation of the seasonal strong buying that begins about the middle of January. No doubt inventory levels will rise, but it is still very hard to see where a large number of sellers are going to come from.
Demand remains strong at the top end of the market, where homes sell for a million dollars or more. During September, sales of these luxury homes exceeded last year’s record pace by 50% and it’s the 7th new monthly high set so far this year. A strong economy, coupled with a multitude of relocations from high tax states, has created a boom market for $1,000,000+ homes like we have never seen before. Last year we set a all time record high and to date we have blown those numbers out of the water.
While the top end of the market soars, the lack of quality inventory, and median prices that had climbed significantly have helped slow buying down in many neighborhoods. Pending home sales have dropped for 5 straight months and they fell again an additional 6.5% in September. Much of this decline is what we expect because of traditional seasonal buying patterns, but the lack of good inventory keeps many buyers from pulling the trigger.
Interest rates remain very favorable but qualified buyers struggle to find an acceptable home, especially at valuations under $750,000. Buyers still remain selective and are not jumping at overpriced homes or those that need a lot of work. All of these factors have led to declining median home prices with condo prices at the lowest levels we have seen since April. Single family values have pulled back even more and are now at the lowest levels we have seen since March.
Buyers need a game plan if they are going to find their pot of gold at the end of this real estate rainbow. It’s critical their finances are in order and cash or strong pre-approval credentials are readily available. It’s critical they are informed immediately of new opportunities that match, what hopefully is, a very well defined search. It’s critical they can make quick decisions with a real estate broker who has the ability to show them the true value of any home. Its a tough game, but one than can be won with the right strategy and a little patience.
Paradise Sharks has been playing the real estate game for decades and our boutique culture, without middlemen, means our clients are rewarded with closing credits for all our buyers and the lowest commissions anywhere for our seller clients. When doing real estate, always interview and make sure you are making informed decisions. Interview brokers and Paradise Sharks would LOVE the opportunity to earn your business and show you how the real estate game should be played. Contact us anytime at firstname.lastname@example.org or 561.308.0175.
Fins up for winning this crazy game of real estate……..