Northern Palm Beaches pending home sales show strength during June
Sure, it’s summer and the local real estate market slows over the hottest months of the year. Pending home sales in June were down 12.7% in the Jupiter area, but that’s not necessarily bad. You see, last year during June, pending home sales in the area dropped 20.5%. In fact, pending home sales as of July 1st are 7.2% higher than year ago numbers and that is the first time we can say that in 9 months. So while it’s summer vacation, and real estate sales slow, this year they haven’t slowed as much and that is a good thing.
The fact that buyers have fewer options available, just makes the positive buying news even more positive. The number of homes on the market for sale fell again during June. It was the 4th straight monthly drop and the number of homes that buyers have to choose from are now at the lowest levels we have seen since October. The problem for those actively shopping for a home is inventory levels will almost certainly fall further over the next three months.
Less choice, with stronger than expected sales, is bullish for prices and here in the Jupiter area the median price of a home has been strongly to the upside over the past few months. The big question is, will buyers remain more active this summer and keep those prices moving higher?
The million dollar plus market remains on a strong path but more and more we are seeing warnings of a potential slowdown in the overall economy. Keep a close eye on the Fed, as if they start cutting their interest rate, as many project, it is a sign that the economy needs a prod to push a possible recession further down the line.
We are blessed to live in an area where demand is not what we would see in a more traditional American community. So many of our residents are well heeled seasonal visitors both from this country and abroad. Others are part of the significant inflow of new Florida residents escaping taxes in states that are having a very difficult time meeting their financial obligations. All these things are very bullish for Jupiter area real estate.
However, for real long term strength we need an economy that continues to prosper and pushes wages higher. Median incomes do not come close to qualifying for median priced homes and that is a problem for our young adults. Either wages need to rise, or prices need to fall. It’s pretty simple math and it tells us that many are priced out of owing a home in the Northern Palm Beaches.
As Paradise Sharks tells you almost every week, anybody doing real estate needs to be educated and know the real story about the property they are considering either a purchase, or a sale. It’s not easily found, as the national and local press tend to report numbers about 30 to 60 days after they happen and are no longer valid. They also gear their news to what’s going to get consumers to watch their broadcast, or buy their newspaper. Fewer are, so the need for more sensational headlines, continues to grow. Real estate mistake can be very expensive so trying to avoid them is very important.
If you are looking for the most accurate information, on the street level of your neighborhood, feel free to contact Paradise Sharks at firstname.lastname@example.org or 561.308.0175. Not only have we been doing nothing but real estate for decades, our small business culture is based on a very high level of customer service and true value that many brokers can only dream about. No middlemen, no franchise fees, no broker splits, no scripts to sell you, just straight forward customer service at the best value in the industry. It’s what we do and we would love the opportunity to interview for your business and earn your trust.