Is the Jupiter real estate market heading for a summer vacation
So far 2016 has been a far cry from robust when it comes to real estate sales. Perhaps we are a bit spoiled as last year topped the record books for the total number of real estate sates in the Northern Palm Beaches. So expectations were high. Interest rates were low. On January 1st it was looking like a banner year heading our way.
But so far 2016 home sales through the end of May are down. And rather significantly by 12.5% over year ago numbers. No doubt we are using the best year in history as a benchmark and going back and looking at earlier years this years numbers look decent. Then we look at median prices and so far this year we are up by about 3.7% over the first 5 months when compared to 2015 numbers. Give most the credit to the condominium market where prices are up 8.8% while single family homes have only moved 2.5% higher so far this year.
Over the past 30 days we have seen declines in both pending home sales and inventory. Both numbers are important but let’s first look at what has happened to pending home sales.
As of June 1st in the Jupiter area the number of homes under contract have declined about 4.8% over the past 30 days. Looking at seasonal factors the odds are very high that these numbers will continue to fall for at least the next three months. It’s kind of summer vacation time for home buyers so if you have a house to sell you, or one to buy, you need to understand this. Know the detailed numbers for your neighborhood and use them to your advantage.
As for the number of homes on the market in the Jupiter area they too have declined over the past month, by about 2.2%. As of this minute, there are far more homes available for buyers to choose from what buyers last year had. In fact, they have inventory levels 11.6% ahead of last year heading into summer vacation. This too will favor buyers and put sellers at a disadvantage over the next few months. We will be extremely surprised if inventory levels do not decline further for a minimum of 2 months as family’s look for summer fun ahead of making the house look pretty for a potential sale and the dog and pony show that entails.
This summer, if you are in the real estate market on either side of a transaction, educate yourself and know what these numbers mean as the difference at the closing table can be many thousands of dollars. Watch interest rates closely as the Federal Reserve is once again pounding it’s chest with threats of raising rates because the economy is so good. That’s a bunch of rhetoric so be careful and be informed.
Informing our clients is a huge part of what we do here at Paradise Sharks. If we can ever be of help with anything real estate we would LOVE the opportunity to serve you. Contact us anytime at 561.308.0175 or firstname.lastname@example.org and you will see why we are different…..by design