Fewer for sale signs as Jupiter home prices continue to rise
June has arrived and that means so many things. It means that today is the last day of the year for public schools in Palm Beach County. It’s the official kick off of the 2018 hurricane season. Its even National Doughnut Day. In the world of real estate, June almost always means the largest number of single family home closings in Jupiter during any month. We fully expect that the traffic in closing agents offices will be very strong over the next few weeks..
As of today, the number of homes for sale in the Northern Palm Beaches fell over the last half of May by 3.8%. Compared to the 5.6% drop we experienced last year over the same period it’s about as good as the inventory news gets for prospective home buyers. Current inventory levels are 2.8% lower than on this date in 2017 and we expect further drops over the next 3 months.
There has also been slower activity from buyers which we fully expect because of seasonal factors. Pending home sales in the Jupiter area have dropped 5% over the past two weeks but again a smaller drop than the 6.2% reduction we experienced last year. The number of homes under contract are trailing 2017 numbers by 1.2%.
Pricing pressure remains firmly to the upside in both the condominium and single family market segments. The median single family home price in the Northern Palm Beaches has hit $500,000 for the first time ever and are up 14.7% over the past 5 months. Median condo prices are up 13.4% over the same period and closing in on the $250,000 threshold.
This week, interest rates were down 13 basis points, which is a fairly significant drop. With median prices on the upswing, and inventory levels on the downswing, buyers have been forced to pay a premium price for their dream home. Improving economic news with the unemployment level today down again to the lowest levels we have seen in 18 years. The economy has a better foundation than we have seen in many years and is helping to bring buyers back into the market and push prices higher.
With prices and interest rates both in upward trends and the summer months upon us we expect to see some consolidation in the weeks ahead. If you are doing anything real estate, make sure you understand the specific numbers and market trends that effect each property you are dealing with. If Paradise Sharks can be of help in any way please feel free to contact us at email@example.com or 561.308.0175.