If you get one thing from today’s Paradise Sharks mid-month update on the state of the real estate market in the Northern Palm Beaches let it be this fact. Your property is inherently different from any other property. It plays by a different set of rules and what is true for a home across the street may not be true for your home. To illustrate, over the past month pending home sales in the Northern Palm Beaches have dropped about 8.5%. However in Juno Beach, one village that makes up the Northern Palm Beaches, pending home sales have actually jumped an amazing 83%. In Tequesta, they are up 2% but in Hobe Sound they have dropped about 21%.
What about the number of homes on the market for sale, what we call inventory, and how they effect the market. In Jupiter, over the past month inventory levels have barely moved, less than a percentage point decline while in neighboring Tequesta inventory levels are down 15%.
Price movements can be just as drastic and these numbers all change on a daily basis. If you are trying to sell a home and are not getting regular updates from your broker then you aren’t paying attention to what the market is telling you. Ignoring this information is going to cost you money and potentially lots of it.
If you have been keeping up with Paradise Sharks weekly market updates you know that the local real estate market is on summer vacation. While your kids may be returning to school today the summer vacation is not over for the local real estate offices. As of today, pending home sales in the Northern Palm Beaches are down about 4% over the past 2 weeks, down over 8% the past month. Of more importance is the fact pending home sales are over 12% behind where we were a year ago. They have now been down for 3 straight months and we expect further declines in the weeks ahead. Summer vacation isn’t over yet.
Pending home sales are effected by many factors like the overall economy and interest rates which this morning sit at brand new, all time record lows. The average overnight rate on a conforming 30 year fixed loan is down 4 basis points from a week ago to 3.35%. There has NEVER been a better time to borrow money. But perhaps nothing effects pending home sales than what inventory there is, how it is priced and what condition it is in.
There is still a lack of well priced inventory in many neighborhoods. The best locations sell fast if homes are properly marketed and priced. As of today, Northern Palm Beaches inventory has declined about 2% over the past two weeks. Overall inventory levels are down almost 6% over the past month. The number of homes available for sale has been down for 4 straight months. But the thing you need to know here is they are still almost 11% higher than a year ago and we should see them starting to stabilize and head a bit higher. The kids are back in school, your summer vacation is over and many start thinking about upsizing, downsizing or finding a new neighborhood more in tune with their current lifestyle.
Median home prices are starting to get very interesting. Single family home prices in the Jupiter area have been up strong for a couple months to new 10 year highs and are within 9% of all time highs. Median condominium prices have been up 6 out of the past 7 months but appear to be leveling off. They are still behind the highs before the bubble burst by 22%. But watch the new FHA financing rules that should provide a solid boost to prices in many condominium communities.
Please remember when doing anything real estate to interview at least 3 brokers. Find out if you trust them to help you make well informed decisions and what they are going to charge you. If you are anywhere in Palm Beach or Martin Counties and love high quality customer service, the most accurate market information and the best value please consider putting Paradise Sharks on your interview list. We would be truly honored and you can contact us anytime at 561.308.0175 or firstname.lastname@example.org.