Jupiter home shortage critical as buying season approaches
The Jupiter real estate market is approaching a defining moment, as we inch closer to the start of our home buying season that historically kicks off about January 15th. On many fronts, it looks to be a banner season with interest rates and unemployment near all time lows, while wages and new job creation keep hitting new all time highs. The Northern Palm Beaches real estate community should be licking their chops.
However, there is a serious problem, as inventory is already at historic lows with no signs of getting better. During November, the number of homes on the market for sale in Jupiter, and the neighboring communities, did rise as we expected. However, that increase was a modest 3.7%. Our current inventory levels are 14% below year ago levels and we have to go back well over a decade to find lower inventory levels on December 1st.
The lack of options for buyers, especially at the lower price points, is of true concern and not bound to improve in the near future. December is not a month we see a lot of new listing activity as potential home sellers prefer to enjoy the holidays without a stream of buyers spoiling the festivities. We can pretty much guarantee you that a month from now, when buyers are ready to buy, there will be even fewer options for them.
New construction in the Northern Palm Beaches remains very expensive and out of reach for many buyers. With few quality options, buyers are frustrated, and as of December 1st, pending home sales are down for the 7th straight month. November’s fall was barely measurable, but watch for a more significant decrease this month as home buyers tend to take the holidays off as the lack of new listing activity means little to grab their interest. There is some good news, as on this December 1st there are 11.7% more homes under contract than year ago numbers.
If your homes’ value is important to you, keep your eyes and ears open in the months ahead. While million dollar home sales in the Jupiter area will set another all time record in 2019 we have seen weakness in resale closings over the past 4 months. However, many buyers at the top end of the market are building and we have never seen the volume of custom homes under construction as we see today. Watch inventory, prices and sales in your neighborhood closely and if you ever need help understanding what the numbers really mean, feel free to contact Paradise Sharks as we are here to help. You will find us easy to reach at 561.308.0175 or firstname.lastname@example.org. Our passion is always to serve our clients and their needs and we look forward to being of service.