Numbers Climb to 6 Month Highs
Those of you who know me have a firm understanding of my passion for numbers. Anybody who is making a decision about buying or selling real estate should have as much information as possible. The facts and the gut feelings. The facts about real estate sales levels have been easy, it is the gut feeling that remains more difficult. The facts are that pending home sales in our first of the month reports had gone down for 9 straight months. My gut was telling me that the foundation of the real estate recovery had some significant cracks. We are very pleased to report this morning that for the 2nd straight month this trend has reversed course. But my gut is still worried about those cracks.
No doubt about it more people in the north county region have been buying homes. In fact as of this morning pending home sales in the north county region are up over 10% from where we stood one month ago today. A 10% spike in 30 days is huge especially seeing how that foundation had been cracking. We have not seen numbers this high since September of last year. If Paul Revere was riding through the streets of Jupiter last night in the midnight hour he would be professing “The buyers are coming, the buyers are coming, the buyers are coming”. Listen my children and you shall hear.
Do this mornings numbers tell my gut that the cracks are healed? After all our year over year numbers still show some dramatic declines. Locally pending home sales are down almost a full 25% from year ago numbers. Please keep in mind that each property is different and each seller, or buyer, needs to listen to the facts surrounding their parcel and keep them in perspective with the overall market numbers. Yesterday we visited with a client in their new beach bungalow along the Avenue in Delray Beach. We had recently sold their condominium for a hefty 41% gain in less than two years and since then others in the building are feeding on this and prices are up even more. We sat in their recently completed home sharing a beer and marveled how they also had in excess of a 41% paper gain in the home they are now enjoying. But that is today and tomorrow the chant may be different. It is also in one hot location and who knows when that might cool. I can take you just a few blocks away and show you owners who wished they had properties in a “hot spot”. Maybe tomorrow. Location, location, location. Timing, timing, timing. Information, information, information. Always interesting, always fun.