Local homebuyers facing higher prices and fewer choices
If you are one of those out looking for a house in the Northern Palm Beaches this summer, brace yourself. Not only are prices rocketing higher, but the options you have to choose from are not great in many neighborhoods. Entry level buyers will have a difficult time finding anything that meets their needs and budget. When the best new listings hit the market, they will be snapped up in multiple offer situations so you need a broker who knows how to position you for success. At the top end of the market, buyers have more options, but competition for the best new opportunities is still extremely strong.
Pending home sales in the Jupiter area, as or June 15th, are down for the 2nd straight month but have moved ahead of year ago numbers. That’s the first time we have seen that in 8 months. Still, seasonal factors are strongly in place and odds are high that pending home sales will continue to fall for the last 6 1/2 months of the year. Inventory levels also continue to fall making it even more difficult for those out buying to find the perfect home.
Overpriced homes, and those in less that optimal condition, continue to languish as buyers are more educated than ever before. Paradise Sharks recently listed a home at $450,000 and after 2 weeks had almost no activity. A price adjustment to $435,000 heated things up quickly with 7 showings and 3 offers in just two days. The house sold for full price after the reduction, so you can see what happens when a price dips down to a price the market will react to. What appeared to be a fairly insignificant cut of $15,000 was the difference between a stale listing and a multiple offer situation.
If you are shopping, you will encounter a totally different experience depending on where you are looking and the price range you are targeting. If you are looking for value, be very careful as prices are rising. Median condo prices in the Jupiter area are up firmly above $250,000 for the 1st time in 13 years. Single family home prices are up 9.5%, so far this year, to a brand new all time record high of $520,000.
Rising prices have pushed the number of homes selling above the million dollar mark to record after record. So far in 2019, sales of these luxury homes are up 17% from last year’s record pace. But in all price ranges, the best conditioned listings are drawing immediate attention as buyers are more willing to pay higher prices for something they want. Interest rates have continued to fall with fixed 30 year conforming rates firmly below 4% for the first time in a year and a half. That helps to keep monthly principal and interest payments more affordable for those stretching on the purchase price.
It’s critical to team with a real estate broker who understands the market. Who understands construction. Who understands how to negotiate. Who knows how to market. Paradise Sharks has decades of experience and our small business culture saves our clients thousands of dollars. No middlemen means the lowest commissions in the business, it means significant credits at the closing table. Paradise Sharks takes immense pride in saving our clients lots of money, whether they are buying or selling, and we’ll help them make educated decisions. If you want to learn more, we are very easy to reach at firstname.lastname@example.org or 561.308.0175.