"Summertime Blues" set in as Jupiter home prices drop
First monthly price decline since October
If you have been reading our articles you already knew this was coming but Jupiter home prices have dropped as of August 1st for the first time in 9 months. After hitting a new 7 year high just 30 days ago the median sales price of a single family home in Jupiter and the entire north county area has fallen over the past 30 days.
We knew sales would slow during the summer months and that if we could hold our own heading into the 2014-1015 season it was going to be big. Really big. We still believe that but know overall economic news can shift a real estate market in the blink of an eye. Always watch for the impact of macro-economic news but if the overall economy keeps churning along some really good days are ahead of us when it comes to home prices. They are going up.
Since July 1st we have seen Jupiter home prices drop about 2.5%. Nothing to fret about after prices had soared almost 20% since November 1st. Year over year today's prices are still 6.8% above where they were 365 days ago in the north county region. We remain 6.2% higher than the 12 month moving average. As of August 1st inventory levels dropped for the 8th straight month and this should help keep pressure on for higher Jupiter home prices. However, pending home sales also dropped which could mean lower prices ahead at least in the short term. If buyers do not have selection they will be forced to pay more money if they are to buy. It is this tug of war that will dictate the future of Jupiter home prices.
The question is will buyers see value in higher prices with little choice in large enough numbers to push this market along. I believe they will but those numbers will probably not arrive until our seasonal visitors do with a 30 to 45 day lag for closings to be held. Still unanswered questions between now and then and we remain hopeful that we can "hold our own". Last year the 5 months from August through December were by far the slowest home sales months of 2013. Right now the numbers are looking for a repeat performance.
If you can find the right home between now and November we believe this will be your best short to mid term buying opportunity. With inventory quality poor you will need to clearly define your goals and be ready to act quickly with a strong offer. With your participation we can stop this price slide at 1 month right here right now. Without there may be no cure for these "summertime blues". Always interesting, always fun.
Paradise Sharks Real Estate