Lack of Inventory Blamed for Lackluster Palm Beach Gardens Area Condo
Lowest monthly sales total in years
Let’s get the bad news right on the table. Condominium sales in the Northern Palm Beaches as of January 15th put in the worst monthly performance we have seen in a very long time. Down 25% over the past 30 days. Down 26.5% from the 12 month moving average. Down 14% from year ago numbers. Down, down down.
We knew it was coming, so it really isn’t a surprise. We know there is a real lack of quality inventory and if it improves buyers are ready to rock and roll. Cash sales in the area have skyrocketed over the past 2 months. Interest rates are lower than we have seen in almost 2 years. We have more seasonal visitors in town that we have ever seen before. People want to buy, there just isn’t much out there. Buyers still remember what happened in 2006 and even though median prices are far below those levels they remain aware that they don’t want to chase properties at too high of a price.
But there are signs. Since the first of the year, local pending home sales are up, and at this point significantly. Over 10% in 25 days. Strong numbers, which tells me inventory is the problem and prices are going to be moving higher in the coming months. We are also seeing inventory levels move a bit higher. Up 5% since January 1st. There is strength out there an the front lines. Buyers have to be well prepared and educated. If inventory levels rise, which we expect sales will follow.
This year is going to be another good one for Palm Beaches Gardens real estate. The die is cast for the winter and early spring months. Prices should be moving higher. Too early to see what the summer will bring but for now its all looking good. Very good. Just because sales pulled back, prices held steady and all is well. Always interesting, always fun.
Paradise Sharks Real Estate