Lack of Inventory Starting to Hurt Jupiter Home Sales

Pending home sales drop for the first time since January 1st

The real estate market has been too strong here in the Northern Palm Beaches. On the front lines it is starting to feel like 2004 and believe me that isn’t a good feeling. Prices still are not up to that bubble pricing but the fervor for new listings, especially up to about $400,000, is utterly insane. Jupiter home sales are up, up, up.

Pending
We knew the 2014-2015 season was going to be big. We have been telling you that for months and months and months. And it was. But now that our seasonal visitors are returning home what is going to happen with Jupiter home sales. Inventory levels have not been helping as they keep dropping. Lower and lower and lower. As of May 1st home inventory levels in the Northern Palm Beaches are down for the 3rd straight month. And they are down big. Down another 8.5% from just one month ago. People ask me isn’t this a seasonal trend we see every year. Hardly. Today we have inventory levels that are 15% below last year at this time. Buyers have fewer selections and they are priced higher. So far buyers have been pushing prices higher. Median prices on single family homes and condos were both up big over the past couple months to 7 year highs. But will this continue?

The first sign that the “big” season is over and we are heading into a summer where anything can happen comes today. As of May 1st, pending home sales in the region are unchanged from a month ago. But, and this is the important thing, since April 15th they have actually declined by 3%. This is important as it is the first decline of what has been the hot market of the really big season we have been shouting about since last summer. We have not seen a decline of any kind since we started 2015 many months ago. The big season is over.

Now, we don’t have to be too down trodden as things are still very good. Pending home sales are still higher than anything we have seen since June of 2013 but we have to start paying close attention because the market is shifting. How far, how fast, is yet to be determined but watch the numbers. And watch them closely. If you are buying, or selling you need to be fully educated and make informed decisions. After all as many have learned bad real estate decisions can get very expensive.

Fins up…..

Tom Priester
Principal Broker

Paradise Sharks Real Estate
561.308.0175

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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?

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