Trouble in paradise for Jupiter home buyers
If you are out looking for the perfect home to purchase in the Northern Palm Beaches, you know what I am saying when I say good luck. Over the past 10 months, buyers had more selection that they had the previous year. One month ago, buyers had more choices than a year ago, but something happened during July. The number of homes on the market took a large tumble, down almost 8%, and for the first time in almost a year, buyer’s have fewer choices than they have had in a long time. Throw in prices that have been moving higher for 10 straight months. Throw in seller’s who are priced ahead of the market. Throw in homes where condition is a significant issue. Throw in neighborhoods where there is no selection and you can see the frustration todays buyer’s are having in the Jupiter area.
There is no reason to believe that traditional seasonal factors will bring us more inventory for at least another 2 or 3 months. Home owners are staying put for a number of factors and this will create more inventory problems for home buyers in the months ahead. People are staying in their homes longer than they ever have before. The latest numbers show the average homeowner stays put for over 8 years. That may sound like it’s not a very long time, but back about 10 years ago they barely stayed put for 4 years. They have nowhere to go. The inventory challenges home buyers face isn’t a game they want to play. And who can blame them.
Demand does not appear to be an issue, it’s supply. Look at the $1M+ market where sales are at all time record highs. Blowing away last year’s record numbers by16% with new records set in 6 of the 7 months so far in 2019. When you realize these numbers do not include the vast majority of new construction, the top end of the market is thriving. For the rest of the market, it’s poor inventory and affordability where we are seeing problems.
Overall, the number of homes under contract in the Jupiter area fell again during July for the third straight month. They have managed to hang onto year over year gains. The bad news is, we still have 5 months where the odds are sales will continue to fall. Interest rates are fantastic, buyers are out there, but finding the perfect home is not an easy game.
Buyers need a game plan. They need to be working with a real estate broker who understands how to set up a game plan so their clients win the game. It takes pinpoint accuracy on search criteria. It takes the ability to react immediately to new opportunities and be the first one in the door. It takes a complete understanding about how the condition of any home and the desirability of the neighborhood will effect price. It takes the ability to make decisions fast and submit offers even faster.
The good news is there are real estate brokers out there that know how the game is played and it’s why home buyers need to interview them and get educated so they can end up with a winning game plan and a successful, informed purchasing decision. Paradise Sharks love to interview. We give all our buyer clients significant credits at closing and our small business, can-do, culture means a level of service the big box brokerages can only dream about. To learn more about the future of real estate please contact Paradise Sharks anytime at 561.308.0175 or firstname.lastname@example.org.