Home Buyers Pull Back in Northern Palm Beaches

November 15th pending home sales disappointing

October single family home sales in, and around, Jupiter Florida were very strong. Surprisingly strong, Lots of sales pushing the median sales price higher. We update condo sales statistics in the middle of the month and while final numbers are not available at press time we can tell you they too will be strong but prices only holding steady. Still the signs were starting to show us that the summer slump of 2014 might be over. The “season” was here and things were starting to look bullish.

Pending

On November 1st, after 8 long months of decline, inventory levels finally increased. On November 7th we reported the first increase in median single family home prices after a steep slide that began on July 1st. Those prices were pushed higher by the strongest month of sales we had seen in a long time. Just yesterday we reported that inventory levels continued to grow. The “season” is here and things are staring to look bullish. Or are they?

Pending home sales are the pulse of any market. And today’s numbers are disappointing. Down almost 7% over the past 30 days, after two straight months of increases. Down to the lowest numbers we have seen since January 15th. That is right, the lowest numbers we have seen in 10 months. Down 11% from year ago numbers. Down 12% from the 12 month moving average. Down, bearish down. If there is a silver lining it is the fact that over the past two weeks pending home sales are up; but not by much.

From our perspective the market is good. Our office is busy and we are out with clients. Good deals are hard to find. The best deals still sell quickly. Maybe the lack of quality, well priced inventory is a bigger factor that we realize. Maybe the pent-up demand is ready to drive this market out of the “summer slump”. Maybe. Maybe not.

Maybe sales figures over the last 30 to 45 were a head-fake. Maybe the “summer slump” isn’t over. Pending home sales are the pulse of the market and they are not telling us at this point the patient is recovering. They tell is the patient has just suffered a relapse. But the season is here, winter weather is starting off on a nasty foot up north, snowbirds like to buy real estate and they have more options than the market has provided for a long, long time. The patient can get better but as of now that has not happened.

If you are in the real estate market and making decisions, please make wise ones. Educated decisions. Knowledge is power. You cannot negotiate effectively without it. Know the numbers surrounding the property you are making a decision about. Each property is different. Each day is different. But a seasoned professional can help you and you deserve it. Make wise decisions. make informed decisions. And keep a close eye on the pulse of the market. If you need help just ring the Paradise Shark at 561.308.0175 or send us an e-mail to tom@paradisesharks.com. We would love to help and bring value to your real estate transactions. It’s what we do.
Fins up…..
Tom Priester
Principal Broker

Paradise Sharks Real Estate
561.308.0175
tom@paradisesharks.com

http://www.paradisesharks.com

Advertisements

Published by

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?

2 thoughts on “Home Buyers Pull Back in Northern Palm Beaches

  1. Previous headfake looked like a dead cat bounce. Look at the trend and not the small sample size data. Prices have gone up too much in both stocks and housing. Correction would be healthy but sellers don’t want to accept it. I see a lot of decent inventory lately but almost all of it needs some amount of renovation and most of it is all overpriced still.

    1. Todd,

      We are always looking at trends and feel strongly that our research is more up to date and accurate that you will find anywhere. Prices are still down substantially from the 2005/2006 market highs in the Northern Palm Beaches. The median priced single family home price is down 22%, median condo price is down 32%. Not sure you can compare this on an apple to apple basis with a Dow that is very close to all time highs. Prices have pulled back in the single family market; was over 10% but October sales and prices were strong. Condo prices holding steady. New condo developments are seeing brisk sales at record prices. We share your belief that many sellers have prices set too high but with the lack of quality inventory and a very strong season ahead we are still calling for higher prices through April. Concerns about the overall economy and a fiscal cliff that has been swept under the rug but short term in paradise looks solid here on the front lines of the real estate market.

      Fins up…..

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s