Two weeks ago in this column Paradise Sharks told you “America has been shut down and it’s really just getting started”. Well, since then, it’s just gotten worse for the real estate market in the Jupiter area. What more could one expect, as when you shut down a country there just aren’t a whole lot of people out there buying homes.
So, how bad is it for Northern Palm Beaches home sales? Very bad, with pending home sales over the past month down an astonishing 39%. Down 21% over he past 2 weeks. Down 38% compared to year ago numbers. Pending home sales on April 15th are the lowest we have seen in well over a decade. This my friends, is a big fall and as long as our government keeps the country closed that fall is going to continue.
The good news is, the market has not stopped. Over the past month, in the Northern Palm Beaches, there have been 213 homes go under contract. There has also been 386 new listings that add to the inventory. However, there have also been 416 homes that are have been removed from the marked either because the listing expired and the listing was cancelled. So overall inventory levels dropped for the first time in 7 months.
Inventory levels remain very poor and there is a true lack of quality homes for the few buyers out there to select from. It’s the best listings that are attracting buyers and so far we have not seen any drop in median prices. Inventory of homes in the Jupiter/Palm Beach Gardens area is down 15% from year ago numbers, and like pending home sales, are at the lowest levels on this date that we have seen in well over a decade.
Interest rates provide a little bit more good news as they have been falling, with the average overnight rate on a conforming 30 year fixed note sitting at 3.62%. That’s the lowest we have seen in 2 months and within 2 basis points of the lowest we have seen in well over 3 years. If inflation does not start creating havoc with the economy, we should be heading even lower with interest rates in the weeks ahead.
This coronavirus has changed life in so many ways and it is way too early for conjecture as to what this all will mean for real estate prices. For now, sellers generally have not changed their price expectations and very limited inventory should help provide a brace to keep from dramatic price movements. However, expect prices to fall, and the longer this economy is shut down the more dramatic the effects on the other end.
In real estate, education is always the key to success, so if doing anything please make sure you are working with a broker whose passion is to inform you and not sell you. There are a multitude of moving parts in this business and you have to have complete information to make an informed decision, if you are buying or selling. Paradise Sharks loves educating our clients and if we can ever be of help in any way, please feel free to reach out to us at firstname.lastname@example.org or 561.308.0175. We are here to help and would love to hear from you. The fact that we will provide you remarkable customer service and save you tons of money is just the icing on the cake.
Be careful out there and protect yourself, your family and everyone else in your community. Please play it smart.