Weak pending home sales come home to roost
We have been vocal since last year that the 2014-2015 season around Jupiter was going to be big. Really, really big. We have more visitors in town than ever before and they are filling the restaurants, shops, streets and beaches to the brim. Everywhere one turns there is activity. And lots of it. Except in the real estate market.
Pending home sales have been down for a long time and we keep saying very low inventory of quality, well priced properties is the culprit. The slide began back in May of 2014 and as of January 1st we had seen a decline of over 30%. We had even been second guessing that maybe demand had changed also. But out on the front lines I see a different story everyday. Just last week we placed, what I considered to be, a solid offer on a condominium in Jupiter. It was listed a full 28% above the highest priced sale the community had seen over the last year. We put in a cash offer with no contingencies and a quick close at a price I thought was solid. It wasn’t solid enough. We are seeing luxury homes in the right areas being snapped up in days. I just don’t see demand as the problem.
In January buyers stepped up and pushed the pending home sales numbers higher by 15% but the median price of a single family home in Jupiter and the surrounding areas pulled back. As of February 1st we saw a decline of 2.5% over the past 30 days. Down 8.5% from the highs we enjoyed back on July 1st of last year. We are down 2.5% from the moving 12 month average. The good news is we are still up about 1.7% from year ago numbers.
We are turning the corner. Higher prices are coming our way. The action on the street is to strong to believe otherwise. How much higher we go remains to be determined but through May we see nothing but good news ahead for single family home prices in Jupiter and the surrounding communities. Always interesting, always fun.
Paradise Sharks Real Estate