Positive sign as we head into the 2014-2015 season
Pending home sales in Jupiter and throughout the Northern Palm Beaches have been in a funk. That funk had the local index down over 25% since the 1st of May to the lowest levels we have seen in years. No doubt the investors who were responsible for bringing the market back over the past 2 years have been pulling back. We keep a pulse on that by tracking the percentage of local closings that were settled with cash. While it isn’t just investors paying with cash it is a fantastic metric to keep abreast of their activity.
As of October 1st, our cash buying index was below 50% for the 5th straight month. Investors are pulling back, there is no question about that, and it is time for other market segments to keep the rebound on track. Pending home sales in Jupiter had been down for 4 straight months so it is great news that as of yesterday the index rose for the first time since May. Not a big jump but we are 4.6% higher than we were a month ago. The index is slightly lower than it was a couple weeks ago but holding steady.
Not time to jump up and click our heels as we are still about 9% below the 12 month moving average when looking at the level of pending home sales in Jupiter and the neighboring communities. Inventory remains our biggest concern as our northern seasonal visitors start pulling into town this month. Demand appears strong with slower sales seemingly caused by a lack of quality choices for buyers. Most of the current inventory locally remains priced higher than recent sales or has condition/location issues. The best new opportunities in most areas are still snapped up by well prepared buyers very quickly. We have a new construction sales even coming up in a couple weeks that will help show us where curent demand is so stay tuned. We still see prices pulling back over the next couple months but that should be short lived as traditional seasonal sales coupled with record low inventory levels should move them forward again after the first of the year.
One thing we know is that buyers and sellers throughout Palm Beach and Martin County need accurate market information surrounding any particular property to make fully informed and educated decisions. It is critical and why any broker needs to have the ability to dig through the piles of misinformation found in the press and uncover the real numbers affecting each parcel. Here at Paradise Sharks we take great pride in having that information available and if you need any help please feel free to contact us for a complimentary consultation.
Paradise Sharks Real Estate