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Another Drop in Pending Homes Sales - Reason for Concern?

Third Straight Monthly Decline for North County

Ah summer. Here in south Florida you never know what you are going to get during the summer months. The weather changes in the splash of a dorsal fin and so does the real estate market. Each month at this time we bring our readers the latest pending home sales numbers for the northern Palm Beach County Region. After all, these numbers give us a very solid indicator of market strength. We want to know what is going on and so do our clients.

Over the past 30 days we have experienced another 4% decline in pending home sales which brings us within 1 unit of the moving 12 month average. A new five month low and about 11.5% below year ago numbers. As you know, condo sales were way down in our last report while single family home sales held up very well. Prices have been up across the board for months on end. Inventory levels fell again but seem to be solidifying.

So what does this all mean. Is there a reason for concern? Is the amazing real estate turn around over? Not yet. 

The action is fast and furious on the front lines with the best new opportunities receiving much activity as soon as they hit the market. Inventory remains a problem for those buyers still seeking "deals" and those that are successful have learned to have complete information at their fingertips and be ready to act quickly. Until that changes the market will remain strong and prices firm. The next few months will be slower, we fully expect that. The past 12 months have had fewer sales and higher prices that the year before. Last year at this time was when sales slowed dramatically in the area. We hope to stay close to year ago numbers over the 3 or 4 months and if we do watch out. Next season may be spectacular.

Fins up.....

Tom Priester
Principal Broker 

Paradise Sharks Real Estate