Home inventory in Jupiter increases for the 1st time since February
Home buyers in the Northern Palm Beaches should rejoice. Dance on the beach, shout from the Jupiter Lighthouse, jump for joy. It has been very tough to watch the home inventory in Jupiter and the surrounding communities fall month after month after month. March, April, May, June, July, August, September. Down, down, down, down, down, down, down. When would it end?
But today there is good news as it happened. The level of home inventory in Jupiter and the entire Northern Palm Beaches region has increased over the past 30 days. Not by much, only a total of 23 units. A tad over 1%. But still an increase, the first in over 200 days and perhaps a good sign of things to come. Buyers have been driven away by lack of quality inventory and higher prices. Median sales prices have pulled back on single family homes in the area and condominium prices are starting to follow suit. Buyer’s have reacted positively, as we reported yesterday, and pending home sales are up. Ever so slightly, but like today’s news on inventory, in the right direction. Baby steps.
Buyer’s remain cautious, interest rates remain low and increased inventory is a good sign as we head into the 2014-2015 season. Today’s buyers still remember the bubble that burst towards the end of 2005 and remain skeptical now that prices have risen. They know prices do not always go up and want to buy on the upswing and not the downfall. That is why having a professional real estate broker who knows the market on your team is so very important.
The reality is, median single family home prices in the Northern Palm Beaches remain 24% below the peak we hit in 2005. Median condominium prices in the area are 32% below the bubble numbers and are going to pull back even further. We see many of the best locations perform much better and that is always the case. The reason they say the three most important factors when it comes to real estate value is location, location, location is because it is true.
While buyers remain skeptical, prices still have a ways to run and if the economy remains steady there is no reason to believe they aren’t heading higher from here. No doubt we have been at a bit of a standstill for a few months and where we go from here is going to be very interesting. Buyers should only buy a property they can reasonably afford and buy a home that they intend to love and live in for a long, long time. A place for memories. And by all means lock in long term loans at interest rates that one day may look like the best thing since sliced bread. And if the level of home inventory in Jupiter and the rest of the Northern Palm Beaches keeps increasing you will have more options. Always interesting, always fun.
Paradise Sharks Real Estate