Higher List Prices and Lower Demand Each Contribute
Every month we bring you the latest sales numbers for single family home sales in the northern Palm Beach County region. And 5 times over the past 7 months we have had to report how these sales had dropped further from the highs we experienced back in June of last year. Today we have more news showing that the great real estate recovery of 2013 needs s restart as we once again report lower single family home sales in the region.
As of this morning January sales of single family home sales reported through our local Multiple Listing Service dropped almost 20% from month ago numbers. If there is any silver lining in this cloud it is that compared to numbers from January 2013 we are down a more palatable 5%. But January sales in the region totaling 167 homes are the lowest we have seen for well over a year and show a market that continues to struggle.
We have had two lenders contact us this week looking for business as thing around their offices have been painfully slow. Even as interest rates continue to drop; down another 5 basis points since last Friday, buyers are not reacting positively. Over the past couple days in Palm Beach Gardens we had had sellers lower the list prices on 15 active listings while none have increased prices. And buyers during the same time period have 22 new listings to consider just in Palm Beach Gardens. With sales dropping 20% month over month while inventory levels continue to climb pricing pressure in the region remains firmly to the downside. On this cloud, if there is a silver lining it is the fact that pending home sales increased in the region as of February 1st for the first time in 9 months.
On the front lines we are still seeing solid activity on new listings and renewed activity from the investment community. If the recent volatility in the equity markets continue one would expect investors will continue to prop up the local real estate market. Always interesting, always fun.