Over the past 30 days, the number of homes available for buyers to consider has dropped once again. It’s the 7th straight monthly decline and, over that period, inventory levels have dropped about 14%. On the flip side, inventory levels are up a bit over the past two weeks and also remain higher than they were a year ago.
One would expect that fairly strong sales, and declining supply, would push home prices higher, but here in the Jupiter area the opposite has transpired. Median prices on both single family homes and condos are down over the past few months. Perhaps it’s just a normal pullback in a market where affordability remains a concern. and prices had been up rather dramatically the first half of the year. As of today, median condo prices in the Jupiter area, are up 6% from last year’s prices which is a very strong performance when compared to the single family home market, where year over year prices are up less than 1%.
As we pull closer to the historically strong buying season there are many things to watch. On that list are interest rates that have remained fairly flat since February, but last week with 30 year conventional loans we saw rates jump 7 basis points. A similar jump this week would put rates at the highest levels we have seen since 2011. Any major move to the upside with interest rates can take the wind out of the real estate market in a hurry.
The economy appears to be strong, and sales of homes above the $1M mark set another record here in the Jupiter area during August. As of September 1st, sales in this luxury category are almost 9% higher than last year’s record pace. Jupiter home sales will remain just fine as long as homes in this price segment continue to sell well. This should keep upward pressure on median prices, but there is so little inventory when its comes to well priced homes in great condition as buyers continue to shy away from homes that need upgrading.
As always, if you are considering either a purchase or sale of real estate, team with a broker who you trust has your goals, and not theirs, as the main focus. Always interview ands ask a lot of questions. Make sure you are working with a broker who understands the market and will provide you timely information on shifts in the market. Paradise Sharks loves to interview and you can set yours up today at 561.308.0175 or email@example.com. Let us show you how taking the middleman out of the real estate transaction will make a big difference in both service and value.