Why December may be the best month to buy that Jupiter home
December is always a month where things in Jupiter real estate slow down even further. With the holiday’s upon us, few people list their property in December, and even fewer buyers are writing contracts. That is why, if you have been riding the fence on that purchase of real estate in the Northern Palm Beaches, you might consider acting over the next few weeks.
If the economy keeps moving in a positive direction, you will probably not find a better time to secure the best deal on the ideal Jupiter home. While others are taking in the holidays you might just strike up a fantastic deal. Median prices are down from the 2018 highs we saw in June, and if history tells us anything, prices will be going up once our winter visitors start writing contracts in the middle of January.
Last season, the median price a single family home in the Northern Palm Beaches jumped from $439,000 in January to $500,000 in June. That is almost a 14% jump during the seasonal buying period. Median condo prices jin the same period jumped from $225,000 to $247,000, which represents an increase of almost 10%.
Buy in December, and you will probably get a better price than you will see in quite a while. Besides December being a month with less competition, there are other factors that make buying now somewhat compelling. Interest rates on a conforming 30 year loan dropped 9 basis points last week to the lowest levels we have seen since September.
As of December 1st, the number of homes, buyers have to select from is up for the 3rd straight month and at the highest levels we have seen since April. Today, buyers have almost 4% more inventory that they did a year ago. That being said, inventory levels will drop over the next 30 days. It’s December and that is just the way it is.
Pending home sales have also moved higher in November and that is only the 2nd time we have seen that since May. The number of homes under contract in the Jupiter area has fallen 40% since June 1st. November’s bounce was after pending homes sales hit the worst levels we have seen in 6 years. They are almost certainly going to drop further in December and set another new 6 year low.
The reality is, Jupiter home prices are down since June, and will probably be heading higher in January as we saw last season. Interest rates are favorable and unless the Fed changes their outlook will be again heading higher. December offers buyers the opportunity to buy at lower prices and interest rates that are better than we have seen in many weeks.
Still a lot of poor quality inventory, still some sellers asking too much for their homes, so working with a broker who knows how to find that “diamond in the rough” is critical to your success. December will fly by quickly and if you do not find the right Jupiter home over the next few weeks the chances are high you will be paying more, both for the purchase price and the interest rate you will end up locking in.
Paradise Sharks not only tries to understand each of our clients needs, but will do everything we can to save you more money than anyone in this business. If you are even thinking of buying, or selling, a property here in the Northern Palm Beaches feel free to contact us for a complimentary consultation. Super easy to reach at email@example.com or 561.308.0175 we would love to help you make a fully informed decision.