Disappointing Jupiter real estate season
March 1st is a very important date when it comes to Jupiter real estate. The “season” is half over and real estate professionals should be beaming from ear to ear. But if you look around and really ask it’s just not so this year.
Sure, pending home sales are up for three straight months, up 18.5% during February. On the surface, these look like pretty good numbers. In reality, pending home sales in the Northern Palm Beaches are the lowest they have been on March 1st for many, many years. They are 30% lower than numbers we have seen in previous years so while they have been increasing the Jupiter real estate market is looking tired.
Inventory concerns are not getting better. As of March 1st, the number of homes available for sale in Jupiter, and the surrounding communities, is up for the 2nd straight month, but when you start digging into the numbers they are bad. Once again, they are at the worst levels we have seen for many years. Compared to previous years they are down by as much as 15%. But the bigger problem is, between now and August, the odds of any increase in the number of homes available for sale is somewhere between very slim and none. The odds are very high that over the next 5 to 7 months inventory levels will fall lower and lower. Buyers will have even fewer options.
With pending sales rising and inventory levels so poor one would think pricing pressure would be to the upside. However, the median single family home price in the Jupiter area is lower than it was 8 months ago. Median condo prices are virtually unchanged over the past 10 months. One would hope, we would see higher prices heading our way but so far it just isn’t happening. Many sellers are priced ahead of the market, hoping that inventory starved buyers, will be happy to chase their over priced homes. In most cases they are very disappointed.
At this moment, there are 432 single family homes on the market in Jupiter and 10.6% of them have lowered their list prices over the past week or so. No doubt about it buyers are in charge of this market. Jupiter real estate is not looking as strong as it should on March 1st.
Looking forward, our new Fed chief made comments that rocked the financial markets on Tuesday. He is appearing before Congress again later today and it certainly looks like we should all be bracing for higher interest rates ahead. Paradise Sharks keeps a very close eye on sales of million dollar homes as they are extremely important to the “mood” of the market. Last year, they sold at record levels. During January, they broke another record. Too soon to count final February numbers but they are not at a level that gives us goose bumps.
Word on the street is the economy is booming, employment is at record levels and the stock market seemingly has stabilized from that couple weeks of extreme volatility. Keep in mind that every property is different and plays by an entirely different set of rules. Over the past two weeks sales have fallen in places like Juno Beach and Palm Beach Gardens while in the Village of Tequesta they have jumped 25%. Pay attention to the numbers as they are always telling a story and that story is always changing. The key to real estate is being educated and if Paradise Sharks can ever be of help in any way please feel free to contact us at firstname.lastname@example.org or 561.308.0175. Not only will we educate you but we will also save you money. It’s what we do.