The real estate market here in the Northern Palm Beaches needs a jolt of energy. Pending home sales continue to decline and the median sales prices of both single family homes and condominiums have been moving lower. We expected slower sales during the summer months but the declines we have seen are stronger than we were expecting. With all signs pointing to increased traffic from our winter visitors things should start to get interesting.
As of November 1st, pending home sales dropped again in the Jupiter area. Over the past 2 weeks they have declined 5.75%. Compared to our October 1st numbers pending home sales have declined 4.7% and we are down a very significant 33% since this slide began back in April. If we are to see prices start heading higher again we need pending home sales to reverse direction.
No doubt poor inventory levels have been part of the reason sales have been poor. Buyers have had few options with many sellers listing at prices ahead of the market. In some segments, especially in the upper end, this strategy has been working to some extent. Here the news is starting to look better with inventory levels as of November 1st moving higher for the 2nd straight month. Inventory is up 2.9% over the past 30 days to the highest levels we have seen since July.
Median prices of single family homes have been down for 4 straight months in the Jupiter area but finally appear to be stabilizing. Median condominium prices have not moved higher since June. Interest rates have moved higher over the past week after falling to the lowest levels we have seen since way back in May of 2013. Summer has indeed been disappointing and now it’s the season of the snowbird. We really need them to start flapping their wings, writing contracts and get this market moving higher. Watch closely as it still looks like a strong season ahead with prices moving higher but we are not as bullish as we once were.