3rd straight monthly increase is good news for buyers
Those who follow our weekly reports know that single family home prices in Jupiter and the entire Northern Palm Beaches region showed solid gains in December. With weak pending home sales numbers buyers, so far this season, have decided they will need to pay higher prices because of limited supply. To see our 3rd straight monthly increase in home inventory levels around Jupiter is definitely good news but not excellent by any stretch of the imagination.
Home inventory levels are up over the past 30 days but just barely, far less than a 1% increase. Compared to year ago numbers today’s inventory is lower by over 4%. There are certainly signs that we should see inventory levels make more meaningful jumps in the weeks and months ahead. As prices improve more sellers can justify making a move. Watch for investors to start putting homes on the market that have been held over the past 2 or 3 years for nice gains. Watch inventory levels increase as prices move higher over the next couple months. The stage is set and sellers will provide us more inventory the higher prices move. Between our seasonal visitors and a traditionally strong spring buying season we need options if sales are going to stay anywhere near 2014’s record sales pace. All signs point to pricing pressure to the upside for the next 4 months at least.
The government is loosening credit standards for entry level homebuyers and this will bolster the lower end of the market here in the Northern Palm Beaches. While fees on FHA loans are expensive the FHA did lower downpayment requirements and mortgage insurance premiums to also help create some action in the first time homebuyer arena. Fuel prices continue to move sharply lower which increases discretionary income and also allows buyers to think a longer commute may not be all that expensive anymore. But the best news of all is interest rates which continue to tumble with 30 year conforming rates down further to 3.85%. This is the lowest we have seen since spring of 2013 almost 2 years ago. This is excellent news for all buyers in all price ranges.
So buyers rejoice that you have more inventory but don’t get too excited. Good listings are still exceptionally hard to find and you must react quickly. If you dod not have a game plan to succeed the change of you finding the right home, in the right location and at the right price are increasingly slim. Always interesting, always fun.
Paradise Sharks Real Estate