Hello Everyone and thank you for watching. This is Gia with Palm Beach Premier Real Estate here in Boca Raton Florida with your 1-minute local market report for MAY 2016.

So here’s a quick take on the numbers that just came out from the Realtors Association of the Palm Beaches

The message this month from the association is that: Demand is high, median time to contract is short and Inventories are increasing

So what does the latest market data indicate? In a nutshsell – What we’re seeing is the following:

  1. FIRST – We’re still seeing year over year price increases, ………and at the same time, 
  2. SECOND - We’re seeing homes and condos that are priced competitively… go under contract quickly, ….and
  3. THIRD… Year over year Inventory levels across all residential sectors are increasing…that’s 4 straight months of this trend…
  4. And finally ….FOURTH – The number of closed sales year over year is continuing to decline…. In fact this is also the 4th consecutive month that we’ve seen this trend as well

So …let’s talk about Supply and Demand very quickly…. As we all know… the economic law of supply and demand states that as inventory levels begin to increase, prices will likely soften…..

What we can clearly see from the May data is that inventories continued to increase year over year …. Making that 4 consecutive months of year over year inventory increases.

When you couple that with a decline in the number of closed sales for 4 consecutive months as well …. what that tells us, is that the marketplace is clearly changing….and a softening of prices is eventually going to occur if these trends continue. Prices of course represent a lagging indicator.

Going forward we will definitely be keeping a continued close watch on inventory levels to see whether the increased supply will place pressure on prices, at the same time keeping a very close watch on the number of closed sales.

If you’ve been considering taking advantage of the strength in the marketplace – now is a great time to sell!

Please give us a call for a confidential consultation at 561.395.8418 or email us at Info@PBPrealestate.com - we’re here to help! 

As always we look forward to speaking with you. Thank you for watching.  We’ll see you next time…