Jupiter Pending Home Sales Not Looking Great

Fourth straight decline is worry some

OK I admit it. I am a bit befuddled. We just updated actual home sales and they were up. They have been up almost every month since March. Not quite across the board up, but almost, with sales increasing over 75% in that 6 month span. Today it is time to update our Jupiter area pending home sales and for the 4th straight month they are down. And down rather significantly. Down almost 12% from where we were a month ago. Down over 23% from where we sat 4 months ago. But single family home sales are at record highs. I am befuddled.

Pending

Jupiter pending home sales should be a leading indicator of sales volumes 30 to 60 days into the future. How can we almost be setting new 12 month record lows in Jupiter pending home sales all the while hitting new all time record single family home sales. Condos and town homes are part of the answer as they have falling, not climbing, sales numbers. But there is no way this is going to continue. Single family home sales have to drop. Today’s Jupiter pending home sales figures confirms it. Take it to the bank; sales are going to sputter for the next few months. They simply have to.

The question is why the sputter? Is it demand or is it supply? From what we see on the front lines throughout south Florida this is a supply issue. There simply aren’t enough quality well priced homes to buy in all price ranges. This week we said good bye to a client who was in town hoping to find a home; a significant home with a budget up to $1M. They returned home after seeing some good opportunities but very limited in number. A couple were new construction for which they did not want to wait. So they went home disappointed. This week we also secured a home for a client with clearly defined goals that we have been watching for the right opportunity to arrive. We finally found it and ever mind that it took 7 months. Supply of what they were looking for just didn’t exist. From my eyes demand isn’t the issue; supply is the main reason we are seeing Jupiter pending home sales drop.

The next few months are going to help paint the picture. If prices stay steady or continue moving higher I will keep saying supply is the problem. We saw a slight decline in prices this month and if those drops continue there is no doubt that demand is also to blame. Time will tell.

 

Fins up…….

 

Tom Priester
Principal Broker

Paradise Sharks Real Estate
561.308.0175
tom@paradisesharks.com

http://www.paradisesharks.com

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Tom Priester

After spending years among the top individual performers at one of Palm Beach County’s largest and most successful real estate brokerages, Tom Priester knew there was another way to do real estate. A better way. Real estate services focused on the customer. Like the old days when the customer truly was #1. He tired of listening to why he should be going out to have his customers sign one sided buyers’ brokerage agreements. He tired of hearing how he should be selling customers why paying higher commissions, like 7% and 8%, was to their benefit. He tired of hearing how he should sell his clients on why they should be paying hundreds of dollars in additional “transaction fees”. The business had slid way too far from being focused on the customer. His customer. So he decided the time was right to be different…..by design. To start his own unique boutique real estate firm truly focused on his customers. They will now have access to a process focused on them. Only the best marketing techniques to sell their homes. No cutting corners. Commission structures based on his clients needs not his. Paradise Sharks was born out of Tom’s passion to return this business to the customer. Where it belongs. If you want a real estate experience that benefits you, just give Tom a call at 561 308-0175 or send him an e-mail at tom@paradisesharks.com. You can always pay more and receive less but that just would not make any sense. Would it?

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