After mortgage interest rates spiked significantly last week, we are expecting them to pull back to all time record lows after the Fed’s dramatic cut of interest rates to 0% yesterday. The government is trying their best to control the spread of the virus and the collapse of the economy with a 22% drop in the stock market, so far. Today could be a bloodbath in equities.
One cannot time a pandemic, but no doubt this virus is going to have far reaching effects that are too early to see. Pending home sales in the Tequesta area jumped 12.8% over the past thirty days and that was in line with the 13.5% growth we enjoyed last year. Today, the number of homes under contract are 15.3% higher than last year and that’s an impressive number considering options for buyers are extremely poor.
Too few good options at many price points and in many neighborhoods and that just isn’t going to get any better, anytime soon. Inventory levels in the Tequesta area did increase over the past month. As of March 15th, inventory in the Northern Palm Beaches was up 1.6% compared to 2.5% last year. However, the number of homes on the market today is 16.5% lower than last year. We would have to go back well over a decade to find lower inventory on this date. If history rings true this year, we will see the number of homes on the market in the Tequesta area dwindle even further over the next 6 months.
We have decided, for a number of reasons, to put our home on the market in the weeks ahead. The picture in this article is our kitchen and we are located in the Tequesta Country Club. One lucky buyer is going to snap this home up so keep your eyes and ears open as we will be making pricing and timing decisions this week. Paradise Sharks is doing everything we can to find quality inventory!
With limed supply and strong demand, one would expect home prices to be moving higher. Median condo prices have been unchanged now over the past 10 months and are still far below the record high we last saw back in 2006. However, median single family home prices are up 4.6% over the past 10 months and just set another new record high of $523,000.
Paradise Sharks had a number of showings cancelled over the past week and we expect to see more of that in the days and weeks ahead. There will be buyers out there, but their financial situation may change, depending on the length and depth of the shutdown surrounding the spread of this virus. Interest rates will probably hit all time lows and the best new listings will still be selling as buyer’s look to take advantage of the cheapest borrowing costs ever. Right now we are hearing that a 14 day mandatory quarantine for the entire country may be put in effect at any time.
The typical buying season will be effected by the coronavirus shutdown. Consumer sentiment will shift. We are expecting a general slowdown but still see qualified buyers reacting to the right opportunities. Paradise Sharks needs new listings in Tequesta to meet demand. We can list any property in Tequesta for a total commission of 4% and if your home is valued above a million dollars, if it is in exceptional condition, if it is vacant, if it sells in less than a week, or if Paradise Sharks handles both sides of the transaction we can save you even more money. Almost all of our buyer clients receive a significant credit at closing as our little way of saying thank you.
We are in uncharted economic territory with what is happening right now, not only in America, but throughout the world. Prepare, don’t panic. Keep informed and know that Paradise Sharks will be keeping very close tabs on everything real estate. If we can answer any questions, or be of help in any way, please contact us anytime at 561.308.0175 or firstname.lastname@example.org. We love helping, we love blowing away our client’s expectations, and we love saving them money.