But this year October brought us a pleasant surprise as pending home sales reversed course and were actually up 4.2%. Like we said, pending home sales almost always drop in October. But not this year. It really is an amazing turnaround for a market that had been floundering a bit.
Is this a precursor to a market that is picking up strength as we head into the 2017-2018 season? After all, pending home sales in the Jupiter area had dropped to some of the lowest numbers we had seen in years. On October 1st, the number of homes under contract in the area were down almost 20% from where they were last year. But remember last year during October pending home sales dropped 16% and this year they went up. Add it all up, and just like that, pending home sales in the Jupiter area are actually higher than they were last year. It really is an amazing turnaround.
Better selection helped, as inventory levels jumped to the highest levels we have seen since June. Inventory still isn’t great, and as of November 1st buyers of homes in the Jupiter area have 6% fewer options than buyers did last year. In all honesty, there are plenty of properties out there, but many are not in what I would call in great condition. Buyers love homes that are updated and well cared for and there just isn’t many of them out there.
There are also many sellers who are listing at prices above market value. That is easy to see as almost 7% of single family home sellers in Jupiter have lowered their list prices over the past week or so. When the market is booming with prices heading higher we see more price increases, not reductions.
Prices bear watching. The median price of a single family home in the Northern Palm Beaches dropped during October for the 2nd straight month but still remains 5.7% higher than year ago numbers. The number of closings has not been solid and for the weeks directly ahead watch for the median price of single family homes in the Jupiter area to pull back further.
The condominium market is a bit different. Only about 1% of sellers have reduced prices over the past week and there are far fewer new listings hitting the market when compared to the single family market. Sales volume has also been slow, with median prices dropping over the past couple months. But with condos, prices have been stabilizing and watch for median prices here push higher in the weeks ahead.
The market is constantly changing and can turn on a dime. Last months amazing turnaround in pending home sales is a perfect example. Every property is different and needs to be fully analyzed on its own merits. Falling prices in the single family market while condo prices are rising is a perfect example of that. Whenever doing anything real estate please seek knowledge. Interview brokers, ask questions. Mistakes is real estate can be very expensive and we would love to help you avoid them. If Paradise Sharks can ever be of assistance in any way, please feel free to reach us at 561.308.0175 or firstname.lastname@example.org.