Home buyers in, and around, Jupiter have a lot to be happy about. Perhaps the biggest reason for that happiness, is inventory levels that have moved higher for the 4th straight month. That move has been big, with home buyers having almost 20% more properties to pick from than they did in September. They have not enjoyed a bigger selection since April of 2017.
Another reason for their happiness is interest rates, that have been moving lower and are down dramatically again this week. This morning, the average overnight rate on a 30 year fixed confirming mortgage is down to 4.35%. If this week’s drop holds, it will be the 13th time in 14 weeks that interest rates have improved for buyers. Rates have not been lower since April of last year. It appears to be the best time to lock in a loan that we have seen in a long time.
With more selection, and lower borrowing costs, you would thing sales would be strong, but they are not. As of today, pending home sales in the Northern Palm Beaches have dropped again for the 4th straight month and are at the lowest mid-month levels we have seen in over 6 years. Sales, quite frankly, are more than a little disappointing but seasonal home buying in the Jupiter area officially kicks off today. Last year, pending home sales between January 15th and February 15th jumped 36%, In 2017 the jump was 39%. This year we need similar numbers and we are about to find out what 2019 is going to look like this year.
Prices remain a concern as affordability is a real issue. Perhaps a bigger concern, is the quality of much of today’s inventory. Buyers are looking for up-to-date properties that they can move right into and they are few and far between. Last weekend, we stopped to see a newly listed property that had me questioning the price, which seemed high. The house was beautiful, the construction quality high, the furnishings exquisite and when you walked in the front door the wow factor was certainly there. It was priced well over 10% higher than anything had ever sold for in this neighborhood. It turns out the first buyer in the door wrote a full prized cash offer. So much for pending home sales being at the worst levels in over 60 months.
It’s time to see how buyers react to all that is going on around them politically and economically. Will our winter visitors be writing contracts and help push Jupiter real estate prices higher for the 8th straight year? We are about to find out, so hang on, as it is going to be a very interesting season for real estate here in paradise.
If you are considering doing anything real estate, buying or selling, please let us know if Paradise Sharks can be of help in any way. Our boutique brokerage is unique and focuses on our client’s success. If you do not win, neither do we. For decades, we have done nothing but real estate and without having franchise fees or broker splits we can simply do more, for less. Always seek education, and if we can be of help in any way please feel free to contact us at 561.308.0175 or firstname.lastname@example.org.