Important metric up for 2nd straight month
With local home sales tanking for 2 straight months and taking single family home prices lower the real estate market has us asking many questions. Last week in this column we asked if this reversal in fortunes was a normal market correction or a big deal. Since then the stock market has been very volatile with concerns over the overall economy and interest rates dipped back down touching the 4.0% mark for the first time since June of last year. Interesting times indeed as we have officially kicked off the 2014-2015 season here in paradise.
We in fact took a little time off to sneak into one of our favorite restaurants late yesterday afternoon knowing that soon seasonal traffic will cause us to pass it by until the snowbirds start leaving in May. We hope they provide a much needed boost to home sales but their options are limited with inventory that is frankly not very good. So we are looking for good news and as of today pending home sales in Jupiter and the entire Northern Palm Beaches region are up for the second straight month. A nice little shot in the arm for an ailing market.
The rise was not meteoric, with pending home sales in Jupiter up about 1.7% from where we stood one month ago. We still lag the 12 month moving average by about 7% and year ago numbers by 5.5%. But pending home sales in Jupiter up 2 straight months is a good sign of stabilization and that we need.
There is no doubt that with single family home prices falling locally for 3 straight months buyers had become weary of higher prices and pulled back on the reins. Condo prices have risen for 6 straight months but we expect them to pull back over the next few months as well. Pending home sales in Jupiter had been down down for 4 straight months up until 60 days ago and it was clear buyers were willing to sit on the bench until prices pulled back. Now that prices have retreated we are seeing them back writing contracts and showing the market some strength. Not much, but some and a little bit is always better than nothing. Tomorrow we will bring you the latest home inventory numbers and we can hope they are higher. Buyers need more options to make coming off the bench an easier decision. Always interesting, always fun.
Paradise Sharks Real Estate