Interplay of supply and demand is looking most interesting
There is no doubt we are entering what historically are the most active weeks of the home buying season. The weeks when home buyers are putting ink on paper and agreeing to buy homes. Last year pending home sales during the month of January in the Northern Palm Beaches soared by almost 15%. In February the shot up another 32%. They jumped again over 6% in March. It kicked off what ended up a year when we sold more homes in the Jupiter area than ever before. Ever, like in history. Way back before the lighthouse was built. Never has there been a year like 2015 where more homes sold in single year. If you wonder why Realtors were smiling in 2015 this was it.
Right out of the blocks, 2016 is starting better than last year. Last year pending home sales were up by less that 3 tenths of 1 percent between January 1st and 15th. This year we are up over 6%. Last year, we had 699 pending home sales in the Northern Palm Beaches. This year we are just about the same with 695 pending sales.
Inventory is different this year and really a wild card that could spoil an otherwise great poker game. As of today, there are 12.5% fewer homes on the market than a year ago. More sellers are asking more money and good listings, well priced are flying off the shelf. While inventory levels are down significantly from a year ago there are up today for the 4th straight month to 9 month highs. Inventory has jumped over 6% since January 1st. This is good news.
Median prices on single family homes in, and around, Jupiter have been rising, significantly. Up from $395,000 on November 1st to $410,000 on January 1st. We are so confident of a big month of big numbers in January we have already put it out there that we feel as of February 1st the median single family home price in the area will leap frog over $430,000 to a new 10 year high. That’s a big jump and we need 2 more weeks of really good sales to get there. But I still say we will be there. The frog is warmed up.
If pending home sales this year get anywhere close to last years numbers over the next 10 weeks it will be a really big year. Seeing jitters about the economy, the election and other factors that may also be wild cards and make the season a big flop. Keep watching as it’s getting fun out there on the front lines.