Northern Palm Beaches real estate market remains a puzzle
Are there brighter days ahead
I have come to trust the numbers when it comes to real estate because they tell a story. They told me a story in 2005 when I told anyone who would listen to sell. They told me a story in 2011 when I told anyone who would listen to buy. I hate the fact that homes have become a commodity but they have. And the numbers can help you make wise decisions.
The numbers today are puzzling. Pending home sales have been dropping. Median prices have been dropping. Inventory levels have started to rise. Prices at new home communities are scary high. Sellers are putting price tags out there that are high. Look at one Jupiter town home community where sold prices over the past year have been between $306,500 and $335,000. There has been no inventory until this week when one seller listed their property for $439,500. Are you kidding me? A full 31% above the highest price paid in the neighborhood over the past year. But watch out as someone may pay it this season. If they want to live in that neighborhood they do not have another option.
We have been vocal that this season looks to be solid with prices rising, perhaps strongly. We are starting to see some of it. This week another Jupiter neighborhood had another new listing hit the market at $925,000. Significant because no home had ever sold in the community for over $865,000 and it was much larger. Only two homes had ever sold above $800,000. Ever. Both homes were much larger. This seller was certainly reaching for the stars. Well guess what, within hours a buyer snapped it up. The numbers are indeed puzzling.
So it’s time to look at the mid-month numbers to see what they tell us. The puzzle is not getting any clearer. Pending home sales are down again in the Jupiter area. Down 3.7% over the past 2 weeks. Down 9.2% over the past month. Down for 7 straight months. Down 37.1% since this slide began. Inventory levels continue to climb. Up 7.25 over the past month to the highest levels we have seen since June. Puzzling indeed.
The season is here. Demand is high. South Florida is highly desired. People are moving here. This is paradise. Prices should be heading higher this season. But the numbers are puzzling. Be informed when doing anything real estate. Know the numbers and if you need any help Paradise Sharks is here. Just let us know and we will help you solve your puzzle.