Jupiter home sales fall to 11 month lows
Boy, do we need the snowbirds flocking back and writing contracts for real estate here in the Northern Palm Beaches. After rebounding slightly during October, buyers once again rested during November as pending home sales in the Jupiter area fell another 5.5% over the past 30 days.
Sure, we expect a little bit of slower activity this time of the year but let’s look at pending home sales on December 1, 2017 compared to exactly one year age. They are down 15%. Compared to December 1, 2015 we are behind by 21%. From 2014 numbers 22%. From 2013 it’s 27%. Pending home sales in the Jupiter area are at the lowest levels we have seen on December 1st than in any year since Paradise Sharks has been keeping records and that is a long, long time ago.
And going back all that way we have never seen homes sales turn positive in December. The good news is, buying will almost certainly pick up towards the middle of January which is just 6 weeks away. We cannot wait for them to get here because this market needs a boost.
Prices that had been moving higher across the board from February through September have changed direction. Median single family home prices in the Jupiter area are down about 8% over the past 90 days. Median condo prices have shown more stability but are still down about 2% from highs reached earlier in the year.
Interest rates remain favorable but have been moving higher over the past 3 weeks. The average overnight rate on a 30 year conforming fixed loan is up 11 basis points during that time to 3.84%. Still very low from historical standards. But the potential for larger upward swings is a significant concern.
Inventory levels have also been moving higher which should be a stimulus for higher sales ahead. We keep shouting about the quality of that inventory and finding “clean” homes priced in line with current market trends is not easy. Just ask anyone who has been shopping. Prices are high and quality is low. Not a recipe for a buying frenzy and new home prices are steep with both land and construction costs on the rise.
Some sellers are reacting to slower sales by lowering their list prices. Over the past week or so over 7% on single family home listings in Jupiter have had price reductions. The stock market keeps hitting record highs as does our national debt. Chaos remains the best word to describe what is going on in Washington.
Never has the need for anyone doing real estate of any kind to be educated. Please, if you are buying, or selling seek knowledge. Interview at least 3 brokers and ask a lot of questions. If you don’t know what questions to ask then ask them to tell you. If Paradise Sharks can ever help educate you please feel free to contact me directly at 561.308.0175 or firstname.lastname@example.org.