North county home buyers will continue to be frustrated
Happy September! And right off the bat we hit you with the same news we did on April 1st, May 1st, June 1st, July 1st and August 1st. Jupiter home inventory is down once again and this time by almost 5% from where we were a month ago. Down 17% from where we were 6 months ago. Hey, look on the bright side buyers you have more choices than you did in 2013 on this date.
No doubt the south Florida real estate market remains very interesting. Consumer confidence in the Sunshine State tells us our citizens are not very excited about an economy that isn’t growing by leaps and bounds. That confidence is matched on a national level as well with interest rates dropping last week to the lowest levels we have seen in over 14 months. Hopes are that lower interest rates will spur economic growth. Single family home sales in the north county region have stayed very strong; pretty much straight up since February to new record highs. But that is about to change and in significant fashion. As the Jupiter home inventory numbers continue to weaken so will sales.
But what is to blame for the upcoming drop in sales? Certainly not interest rates. So, is it buyer demand weakening because of economic worries or is it that fact that as Jupiter home inventory continues to fall there just isn’t anything to buy? Prices are the best indicator and if you follow our articles you know that locally, single family home prices were up for 8 straight months to new 7 year highs before pulling back a bit on August 1st. While it is way too early to compile the latest numbers watch out if median prices drop again on higher sales. We think there will be further softening of prices this month which is not a good sign.
Not with pending homes sales that have fallen for 3 straight months with an apparent disconnect between those numbers and actual sales. The facts are that home sales are headed lower and while Jupiter home inventory is part of the problem it is looking like it may not be the only problem. We won’t publish the latest pending homes sales numbers until tomorrow but they will be much lower for the 4th straight month which also is not a good sign. Always interesting, always fun.
Paradise Sharks Real Estate