Buyers choices limited in today's market
We have to go back 7 long months, all the way back to November 15th, to find a time when home buyers had fewer opportunities in the North Palm Beach area. As of June 15th, we have had our 4th straight monthly reduction in local home inventory and while it wasn't a huge drop it was still a drop.
As we have discussed, this summer is a critical point for the direction our local real estate market will take over the next year. We need sales to show strength over the next 5 months when compared to 2013 numbers. We need prices to at least hold their own. We need this to keep the great real estate correction on the right track. And buyers need choices to make that happen.
Keep in mind that today's inventory level in the northern Palm Beach County region is still about 11% higher than it was last year at this time. The quality and location of that inventory is what is important. I can show you one neighborhood where this morning over 20% of all homes are for sale and nothing has closed in the community since October of last year. I can travel a very short distance to another neighborhood where there is nothing on the market and ready, willing and able buyers are lined up waiting to pounce on the next good opportunity. Real estate is very local and each house is different.
Buyers need the right inventory over the next few months to keep this market moving in a positive direction. We need quality, well priced inventory to keep prices moving to new highs. Last year the institutional investors did more than their fair share to push local housing prices higher. Now it is time to see if we can do it without them. If you want to test the waters there has never been a better time. It is indeed going to be a very interesting summer.
Paradise Sharks Real Estate