August home sales slow as prices continue to surge
September 1st. Labor day weekend. The end of summer?
It all depends on who you ask. The “official” end of summer will arrive here in Jupiter at 4:02 PM on September 22nd. It has certainly been an interesting summer for real estate in the Northern Palm Beaches no matter when you feel it ends. Any way you slice it, we still have about 5 months before typical seasonal buying kicks into high gear. Summer turns into fall that turns into winter before we usually see real estate sales pick up in the Jupiter area.
During July, pending home sales here in paradise went up for the first time that anyone can remember. It just doesn’t happen but this year it did. What would August bring? Well, we have the answer and the home buyers that were active in July went on vacation in August as the final home sales numbers are pretty ugly. As of this morning, pending homes sales in the Jupiter area are down almost 12% over the past 30 days. To put that in perspective, last year during August, pending home sales dropped a little over 3%.
Inventory remains a problem as there just is not much quality inventory in most neighborhoods. If you see a house that is well marketed and in good condition it typically sells very quickly. Paradise Sharks recently listed a home in Jupiter Farms at $599,000. One day later, we had multiple offers and a highest and best round landed a cash deal with a quick closing well above list price. This is in August when pending home sales dropped 12%. Good stuff goes fast. There just isn’t enough of the good stuff to go around. Demand does not seem to be the biggest struggle for this market. Inventory is the challenge.
The good news is the end of summer usually means we start seeing more homes hit the market. However, the trend is baby boomers are staying put and more reluctant than ever to want to trade up, or trade down. There are a variety of reasons, but in the Jupiter area, the biggest reason is what do they trade up, or down, into. They will have the same battle of poor inventory and new home prices are very high. The median price of resale homes also continues to climb. As of this morning in the Northern Palm Beaches, a median single family home is selling for $478,000. That is getting very, very close to all time highs and up almost 3% since August 1st. Prices for single family homes have been up for 7 straight months and have increased over 12% during that span.
This market requires both buyers and sellers to be fully educated so they can make informed decisions. If you are thinking about selling and have a home and a broker that can sell it for top dollar within days you should demand value. Always interview at least 3 brokers whenever doing anything real estate. Paradise Sharks would love to educate you and show you true value and are be happy to set up a complimentary meeting at your convenience. Contact us anytime at firstname.lastname@example.org or 561.308.0175 and we promise you value that many brokers only dream about.