The real estate market in the Northern Palm Beaches is in uncharted waters. Not only are the number of homes for sale at historic lows, so are interest rates. During November, inventory dropped for the 8th straight month and during that time the number of homes buyers have to choose from is down over 35%. We have never seen fewer homes available on the market and over the past month inventory dropped another 5.5%.
Last year, during November, inventory was up 3.7%. In 2018 it was up 4.5%. In 2017 it was up 2.8%. We used to say that inventory always increases during November as sellers prepare for the annual wave of buyers that come to our area and snap up real estate during the season. But that was before 2020 and all the rules of the real estate game have changed. Uncharted waters.
No change has been more dramatic than the volume of home sales that closed above the million-dollar threshold. That trend continues with sales at the top of the local real estate market up 312% in November. Pending million-dollar home sales are currently up 249% compared to last year. Nowhere have the waters been more uncharted than in million-dollar home sales.
Median condo prices have lagged the single-family market and even though are up again in November they still trail the all-time highs we last saw over 14 years ago. The affordability factor is playing a role and if we see traditional condo seasonal sales start picking up in January, there is little doubt condo prices will finally hit a new all-time high and it’s been a long time coming.
The number of homes under contract, pending home sales, also are in uncharted waters. Pending home sales in the Jupiter area were up again in November. It wasn’t a huge leap but we never see sales increase in November. Never that is, until this year. That was before 2020 and the reality of uncharted waters slapped tradition upside the head in the Jupiter real estate market.
So where do we go from here? That’s a very good question, but when one is swimming in uncharted waters there are no easy answers. This Chinese virus has become a stark reality of a change in lifestyle for everyone. It’s been devastating and the United States economy is currently in the worst recession we have seen since the great depression. The political divide in this country has never been greater and there is much distrust in our elected officials, our press and just about everything else. The political divide has put the rampant spending we have seen out of the government slow a bit as the sides cannot decide where the next multi-trillion dollar stimulus money should go. We are 10 days away from another potential government shutdown. Debt is crazy and America seems to not really care so it’s going to be very interesting where things go from here.
If you are buying, opportunities do present themselves, but buyers must be very well informed and prepared to act quickly. If Paradise Sharks can ever be of help just let us know. Almost all of our clients get substantial credits from us at closing. They don’t even have to ask; we just do it as our little way of saying thank you for trusting us with your business.
If you are selling and have a home that is properly priced and marketed it should sell rather quickly. You are in the driver’s seat and should be able to negotiate both fabulous customer service and fantastic commissions. Paradise Sharks can sell almost any home in our market area for a total commission not to exceed 4%, which includes the 2.5% co-broke we offer to the buyer’s broker. Many brokers have been starting to offer 2% co-broke fees and if Paradise Sharks client’s would like to explore that avenue our maximum total commission drops to 3.5%.
Decades of experience, no middlemen and a passion to ensure our clients, friends and neighbors get the very best customer service and the very best value. Contact us anytime at firstname.lastname@example.org or 561.308.0175 and schedule a complimentary consultation.