Over the last month, the sales of median single family homes in the Northern Palm Beaches has also cooled. Fewer homes closed in October than any month we have seen in a long time. Compared to last years’ numbers, sales were down over 22%. While some of the some of the drop off is certainly seasonal there are also other forces at work.
Median single family home prices in the Jupiter area were also down significantly in October. Down about 2.5% over the past 30 days for our second straight monthly drop. Todays’ median price of $458,125 is the lowest we have seen since June but still a very respectable 5.3% higher than year ago figures.
Interest rates remain very favorable and inventory levels have been on the rise,. So far, over the first week of November, the number of homes on the market is up almost 2%. The laws of supply and demand tell us sales should be picking up and over the past month we have seen an uptick, which is encouraging.
Perhaps the biggest problem is the quality of the inventory. Last week, in our neighborhood, two homes hit the market with 24 hours of each other. One was a 1,634 square foot home that had been remodeled in 2012 and was listed at $305 per square foot. Within a few days it was under contract. Just 4 doors down the street, another home with 2,596 square feet was listed at $189 per square foot. It is in need of a significant remodel and sits there with very few showings. Buyers are looking for turnkey and there frankly isn’t much out there these days. If you are even thinking about selling in this market you need to completely understand how the condition of your home will effect its value.
Strong seasonal buying typically starts towards the middle of January so still two months for this market to prepare. Watch for a bit more downward pressure on median single family prices until then. Keep in mind that the condo market is an entirely different animal and we expect pricing pressure to the upside in the short term. Winter is coming and if you need any help with anything real estate please remember to interview at least three brokers. Ask questions and get informed as mistakes in real estate can be expensive. Paradise Sharks would be honored to interview and help you avoid any mistakes. You can set that up anytime at firstname.lastname@example.org or 561.308.0175. We love to help!