Jupiter pending home sales tumble - and it’s all downhill from here
No, this isn’t some sort or crazy real estate April fools joke. Pending home sales in the Northern Palm Beaches have fallen over the last half of March and that’s not a good thing for the local real estate markets. Every year, since Paradise Sharks has kept records, it is a two week period we come to expect pending home sales to increase. But not this year. As of April 1st, we have fewer homes under contract in the Jupiter area than we did on March 15th.
The drop wasn’t much. Really insignificant, except is was a drop and not what we wanted to see. Blame in on inventory, as there still is little for home buyers to select from in many neighborhoods. The number of homes for sale have fallen over the past month, and as of today are about 10% below year ago levels. The bad news for those looking for a new home is things are not going to improve. Not for a while.
Watch for inventory levels to fall through the summer months, unless history decides not to repeat itself. Last year inventory numbers fell in April. They fell again in May, June, July, August and September. It’s what we expect; 6 months of fewer choices for buyers. Sure in 2016 we saw an uptick in September. Back in 2013 we saw them move a very slight uptick in August but those are the exceptions. Watch for fewer homes on the market for sale over the next 5 to 6 months. The fall can be steep. Last year inventory levels dropped 22% from April 1st through October 1st. No, options for home buyers are not going to improve.
There is good news from interest rates but we wonder how long that can last. Rates on a conforming 30 year fixed mortgage are basically unchanged since early February. This morning that rate sits at 4.28%. Historically still a very reasonable number but a half a point higher than what borrowers were paying in November. The Fed still says more rate increases coming this year but we keep watching that National Debt which blew through the $21 trillion dollar benchmark in March. Interesting times as one can easily see with the roller coater ride that Wall Street has been on.
More good news if you are a home owner is prices are moving higher. Paradise Sharks brought you the news a week ago that median condo prices in the Jupiter area were up to the highest levels we have seen in over a decade. Single family home prices have been up for three straight months and when we bring you the latest figures in about a week do not be shocked if we tell you they are at all time record highs. We are within a whisker of those records we set way back in 2005. Not there yet but getting very, very close.
It’s a great time to be selling if you are looking for a record price for your property, but you have to know where are you going. More and more homeowners are remodeling and staying put. If you are looking to buy, you need to be positioned to strike when the best opportunities hit the market as they will sell fast in most price ranges.
When it comes to real estate always be informed. Interview at least three brokers. Ask a lot of questions. Ask them directly how they are going to assist you in meeting your goals. Paradise Sharks may not be the broker for everyone, but even if you select another broker we are pretty sure you are going to enter into that relationship with a better idea on how to meet your unique individual needs. Contact us anytime for a complimentary consultation at 561.308.0175 or firstname.lastname@example.org.