Northern Palm Beach County real estate market remains dysfunctional
Inventory levels up to 6 month highs
Anyone looking to buy or sell real estate in and around the Jupiter area more than likely have a question about just what is going on. Some segments are doing very well with the best waterfront opportunities selling at record prices. We are seeing brand new record high sales prices in communities like Rialto and inventory in many communities near the beach is non existent. Many sellers are pricing their homes “ahead of the market”. Another record breaking “season” is already underway. Try and find a new single family home in the area for under $650,000. Good luck.
Sounds like a major bull market, right? Wrong.
Pending home sales have been down for 8 straight months. The median price of single family homes in the area fell from $431,000 to $395,000 over a four month period. They finally started to move higher as of December 1st. Median condo prices have not risen since June and look to be dropping even lower when we next release numbers in a couple weeks. Inventory levels are up over 11% since October 1st.
Sounds like we are in the middle of a dismal bear market, right? Wrong.
There is no easy answer as to where we are headed but it is time to check in and see what has happened to both pending home sales and inventory levels since our mid-month update. Inventory levels have increased again, up 2.2% over the past 2 weeks. Up 5.8% over the past month. Up over 11% since September 1st when we first started to see them climb after 7 straight months of moving lower. Even with the recent increases inventory levels are down about 15% from where we were a year ago. If we start seeing sales pick up prices could move significantly higher because frankly inventory is still historically very low.
So the supply end of the pricing equation is starting to move higher but still not offering buyers a whole lot of great options. And pending sales are suffering. As of December 1st they have fallen again for the 8th straight month. But the good news is they are finally stabilizing and have only fallen less than 1% over the past month. We have actually seen them increase nicely over the past 2 weeks. This is the first positive sign we have seen in this market since late spring.
It has been a weak summer and fall but as we know the winter and spring months are special around these parts. People flock here from all over the world. Demand is high. Inventory is still low. If they buy prices will rise. But are they going to buy? Stay tuned. And remember if Paradise Sharks can be of help in any way please feel free to contact us at firstname.lastname@example.org for your complimentary consultation. We promise to blow you out of the water with fintastic customer service and we will also show you how to save money. It’s what we do and why we are different…..by design