America has been shut down and it’s really just getting started. The projections for the next two weeks are devastating. Last week’s unemployment filings were 3,283,000. It was a record. The old record was set almost 40 years ago. It was 695,000. Folks this is very serious. A massive $2 trillion dollar relief package will help, but the road ahead is rocky. The rocks are big. Really big.
Here in paradise, we are supposed to be in the very best season we will have for real estate all year. Life has changed in an instant and we all need to understand there are no answers at this point. We are all in this together. People will still have to sell real estate, people will still need to buy real estate but the numbers have changed and they will continue to do so in the months ahead.
It’s not the end of the world. People will have questions about real estate. What if they cannot afford rent? What if they do not have the money for the mortgage payment? Silence in this case is not golden and the harsh realities of the real world cannot be ignored. If I can help, please feel free to contact me. My direct line is 561.308.0175. My email is firstname.lastname@example.org. Paradise Sharks is open for business and we are here for you. It’s what we do, so please do not be shy, or ashamed.
There were concerns about the local real estate market before anyone knew about this virus. Affordability and inventory were serious problems. This virus will undoubtably help with both those issues. How is that for a silver lining?
Pending home sales in the Jupiter/Tequesta area had been solidly ahead of year ago numbers for 5 months. Things weren’t great, but they were good. That all changed in March. Pending home sales dropped 19% during the month. Last year, over the same period, they were up 11%. We are no longer ahead of year ago numbers. The good times were wiped out almost instantly and the number of homes under contract are at the lowest levels we have seen on April 1st in well over a decade. They are 16% below last year and further declines are certain to follow.
This virus could cripple the real estate market. Prices could drop significantly. The volatility of mortgage rates is something we have never seen. Consumer confidence has plummeted. Life as we knew it has been put on hold. People are scared to death and people do not buy when they are fearful. The length of this shutdown. The total cost to the county. Many questions and few answers. It’s no longer business as usual in the Jupiter area real estate market. Demand just got punched in the gut and it hurts.
How far will prices drop is anyone’s guess, but they will retract. Condition of homes will be more important than ever and it was already very important. We are seeing a multitude of price reductions and contracts falling through. Showings have slowed to a trickle. The real estate market is on hold.
Paradise Sharks has always taken great pride in not selling our clients, but educating them. Never, and I mean NEVER, has this been more important. If you are one of those that must sell a home, if you are one of those who must buy a home, you need to understand the specifics and the numbers that are important to making an informed decision. You need a broker who won’t charge you more than 4% to list a home. You need a broker who will give you a sizable credit at closing if you are buying.
This slowdown will continue for months. It’s not the end of the world but things have changed.Paradise Sharks is here to help you in any way that we can. We are open for business. We are here to educate. We always watch the numbers so this isn’t new to us. We told anyone who would listen in 2005 that it may be a good time to sell. We sold and we rented for 6 1/2 years. This isn’t 2005. But it’s not a time to make uneducated decisions. Contact us anytime. We are easy to reach at email@example.com or 561.308.0175. Things will look totally different in a few months. Pay attention. It may not be that bad once the dust settles. But right now there is a whole lot of dust flying around.