Decline of 24% not a big surprise
We have been telling you that the volume of Jupiter home sales had to drop. After last months' record volume we knew it was going to happen. The numbers told us this was heading our way and numbers don't lie. When you look at the chart the drop looks steep but again it follows on the heals of the biggest month we have ever enjoyed for single family home sales in the Northern Palm Beaches. No big deal? Or is it more than that?
We expect further weakness in the months ahead until our winter visitors return and start pulling the trigger on Jupiter home sales. The overall economy seems to be chugging along with the Dow continuing to hit new records seemingly every day. Unless that changes we see another robust, record breaking 2014-2015 season here in paradise. And it's just around the corner.
What is hard to determine is why sales are dropping. Is it because we continue to see lower home inventory numbers that dropped again as of September 1st for the 6th straight month? Maybe buyers' want to buy but can't find the right opportunity because of lack of selection. No doubt that plays a role and if inventory is the main reason we will see prices climb or at least hold steady. Or maybe demand is waning for other reasons in which case we should see prices fall and need to pay close attention to overall market strength. We enjoyed 8 straight months of monthly median gains in single family home prices until they backed off a bit last month. Stay tuned as tomorrow we will bring you the final numbers for August sales prices and see what they tell us. Always interesting, always fun.
Paradise Sharks Real Estate