We really had a tremendous time away from it all and that is why Paradise Sharks first of the month market update is a day late. Realtors in the Jupiter area are all going to have more time on their hands as there just isn’t much to sell right now and it’s about to get worse. Probably a lot worse.
Let’s just look at where we are as of March 1st. The number of homes on the market through the real estate community in the Jupiter area fell during February. While the fall was not sizable, just a little over 2%, it dropped inventory levels even further from what we typically see this time of the year. As of today, buyer’s have far fewer options than they did a year ago, 20% fewer. A rather dramatic fall. The bigger problem is we are kicking off a seven month stretch where inventory levels almost always drop. Significantly. Last year, between March 1st and the end of September, inventory levels in the Jupiter area dropped about 30%. Buyers better prepare, as even though the shortage of homes they have to choose from today is bad, it’s about to get even worse.
Interest rates today sit at the lowest levels we have enjoyed for well over 3 years and it’s somewhat bittersweet as locally buyers have little to choose from. With the economic and viral scare that has crossed our threshold here in the United States, interest rates are probably going to be falling even further. New record lows may not be far away. But to find your dream home, well that’s a different story.
Jupiter area home buyers are doing what they can to take advantage of the low interest rates and even with limited options are making deals. It’s season and we expect solid sales and in February pending home sales in the Jupiter area were up a very impressive 25%. Last year, over the same period, pending home sales were up 18% so buying last month was still very solid. The number of homes under contract in the Northern Palm Beaches is up 16% from last year’s figures. With interest rates so low, imagine what sales would look like if there were more choices for buyers.
There are new construction options, on line, and coming on line, but in the Jupiter area they are very limited and priced well above resale prices. Way out west, we are seeing communities like Avenir by Toll Brothers taking shape and if a beachside location isn’t important they will provide some relief to buyers. Watch for Paradise Sharks detailed article on Avenir that will be published soon as we show you how to save thousands and thousands of dollars and make the right decisions when buying new construction.
With interest rates low, inventory heading towards record lows, and strong seasonal buying, we have been watching for median home prices to be making substantial moves to the upside. So far, that has not happened. Median condo prices as of February 15th were unchanged and still below recent highs. Even more interesting is median condo prices today are still 12% below the all time highs last hit way back in 2006. Interestingly, inventory levels for condo buyers are far better than what single family home buyers face. The number of condos available in the Jupiter area is only down 4% compared to a year ago numbers, while single family inventory is down 23%.
Single family home prices have been moving higher, but not as dramatically as we would expect. As of February 1st, they were up to the highest levels we had seen since July of last year and within $5,000 of all-time record highs. When Paradise Sharks reports on February numbers next week we fully expect that we will be telling you about record prices being hit.
There are always a lot of questions surrounding real estate decisions. The key is education, as informed decisions will save you a lot of money. If you are selling, you should be able to negotiate a great sales price and an even better real estate commission. There are not many homes that Paradise Sharks cannot provide our world class marketing for a total commission of 4%. For homes valued above the $1 million dollar threshold, are in exceptional condition, or that sell within a week, we can save you even more money. If you are buying, Paradise Sharks typically provides our client’s a substantial credit at closing as our way of saying thank you for trusting us with your business.
If Paradise Sharks can ever be of help, answer any questions, or just provide professional advice just let us know. Our passion is to help and you will find us very easy to reach at 561.308.0175 or firstname.lastname@example.org.