Jupiter Inventory Levels Decline 4% in March
Another month has passed and many of our northern visitors have packed their bags and headed north for the summer. The local real estate markets continue to show marked improvement with the number of contracts executed to purchase homes remaining strong. Investors continue to drive the bottom end of the market and their numbers seem to multiply on a daily basis. Anyone who works with investors will attest how aggressive their clients need to be to successfully land one of the foreclosures that continue to hit the market.
Other segments remain red hot as well with well priced single family homes under the $400,000 threshold in good condition remaining a very hot commodity. In a normal market this would be a sign of higher prices ahead but then again we have not been in a normal market for a very long time. Housing demand remains stronger than at any point over the past few years and frankly there is not enough inventory to satisfy that increasing demand. Many sellers are holding out for higher prices and they in fact may be coming your way soon. With many foreclosures still in the road ahead it is doubtful we will see meaningful price increases this year but the foundation of a stabilizing market remains very strong indeed.
Who will be the first to blink has yet to be determined and if it is buyers willing to pay higher prices than recent comparable sales those who are financing still have that nasty appraisal process to deal with. The reality of more contracts falling through on their way to the closing table is very real indeed
This report shows our home inventory “power rankings” for the month ending March 31st. These rankings are set up so the top rated municipality will be the one who shows the highest reduction in inventory levels. Since it is these reductions, when coupled with stronger sales, which will move prices higher we want to rank those accordingly. So here are the inventory power rankings are the rankings for the month of March;
#1 Juno Beach –
#2 Hobe Sound –
#3 Jupiter – Down 4%
#3 Palm Beach Gardens – Down 4%
#5 Tequesta – Down 3%
This months’ report is in fact very bullish as each of our reporting municipalities showing a decrease in home inventory levels. Buyers again are faced with fewer choices and much of what is out there is either in poor condition or over-priced. During March in northern Palm Beach County the average inventory level dropped well over 5% adding more pressure. Next we move to Jupiter who is tied in the 3rd position with a 4% decrease in inventory. Inventory is a also a real concern here as while we are not at multi-year lows like in neighboring Palm Beach Gardens we are very close. As of April 1st we have 1,049 active listings compared to 1,094 on March 1st and we now sit about 12% below our 12 month high back on May 1st. We are also far below the 1,240 units we had in inventory one year ago. No doubt bad news for buyers who had been sitting on the proverbial fence in Jupiter waiting for lower prices.
Sunnier skies ahead……….