Shrinking Inventory Starting to Hurt Jupiter Home Sales
Pending home sales drop for the first time since January 1st
The real estate market has been too strong here in the Northern Palm Beaches. On the front lines it is starting to feel like 2004 and believe me that isn’t a good feeling. Prices still are not up to that bubble pricing but the fervor for new listings, especially up to about $400,000, is utterly insane. Jupiter home sales are up, up, up.
We knew the 2014-2015 season was going to be big. We have been telling you that for months and months and months. And it was. But now that our seasonal visitors are returning home what is going to happen with Jupiter home sales. Inventory levels have not been helping as they keep dropping. Lower and lower and lower. As of May 1st home inventory levels in the Northern Palm Beaches are down for the 3rd straight month. And they are down big. Down another 8.5% from just one month ago. People ask me isn’t this a seasonal trend we see every year. Hardly. Today we have inventory levels that are 15% below last year at this time. Buyers have fewer selections and they are priced higher. So far buyers have been pushing prices higher. Median prices on single family homes and condos were both up big over the past couple months to 7 year highs. But will this continue?
The first sign that the “big” season is over and we are heading into a summer where anything can happen comes today. As of May 1st, pending home sales in the region are unchanged from a month ago. But, and this is the important thing, since April 15th they have actually declined by 3%. This is important as it is the first decline of what has been the hot market of the really big season we have been shouting about since last summer. We have not seen a decline of any kind since we started 2015 many months ago. The big season is over.
Now, we don’t have to be too down trodden as things are still very good. Pending home sales are still higher than anything we have seen since June of 2013 but we have to start paying close attention because the market is shifting. How far, how fast, is yet to be determined but watch the numbers. And watch them closely. If you are buying, or selling you need to be fully educated and make informed decisions. After all as many have learned bad real estate decisions can get very expensive.
Paradise Sharks Real Estate