Median Sale Prices Remain Down 6% Over the Past 90 Days
Yesterday we released the final monthly sales report showing condo sales have fallen to the lowest levels we have seen over the past year. We have seen a similar slide in local single family home sales that also sit at yearly lows. The good news is our February reports showed a very nice increase in pending home sales that for 9 months had been nowhere but down, down down. Even with the “short” month of February we still have a couple days before we publish March numbers. However, we can leak a preview and you can expect pending sales to increase once again while inventories continue to climb.
Rising sales show increased demand which should push prices higher but higher inventory levels show increased supply which should drive prices lower. This is the tug of war that goes on daily in negotiations on hundreds of real estate transactions here in the region. It is these negotiations that buyers and sellers need to be very well prepared for. It is the reason that our passion here at Paradise Sharks Real Estate is for each of our clients, whether they are buying or selling, to have all the information required to make fully informed decisions.
Each property is unique and a condo overlooking the Atlantic in Juno Beach enjoys a different location than a unit in a development west of the Turnpike in Palm Beach Gardens. A properly maintained and updated unit in central Jupiter enjoys being in better condition that a run down property off US1 in Hobe Sound. We are seeing some units in the best locations and the best condition selling for record prices while others with less favorable metrics sit and become what we refer to as stale listings.
Prices in the tug of war in the single family home market have been shown sellers winning over the past three month with prices climbing for 90 straight days. However, the condo market is quite different and even though year over year numbers are much stronger the performance over the past three months show different results. As of February 15th median condo prices in the region remained unchanged from levels from 30 days ago. This stabilization is a good sign as over the previous two month period we had significant downward pricing pressure. The fact is median condo prices in the area remain at the lowest levels we have seen since May of last year. Let’s hope the recent increase in pending home sales adds a little additional muscle to sellers in the tug of war. Always interesting, always fun.