The 2016 real estate game here in the Northern Palm Beaches is off and running and most interesting indeed. We keep a close eye on sales of properties that close above $1 million as the upper end sales activity is extremely important to overall market strength. During January these sales in the Jupiter area declined 20% from December levels. Compare that to the increase of 14% we saw last year over the same period. The good news is sales in this category were 16% higher than we experienced last January. After one month we are on track to brand new record levels in this category but one month does not make a year. There are a lot of margaritas to drink before we put the wraps on 2016.
While we see a lot of great signs this market is still one to watch closely. The seasonal buyer so far has not been as active as we would hope. Interest rates are down another 5 basis points this week and are within a quarter point of all time lows for a 30 year conventional fixed mortgage. Falling interest rates tell us the economy isn’t anything to get excited about. The volatility in the equities market is telling us the same thing. We still have almost 9 months of political banter in our face before a decision is finally made in November.
In another 4 days Paradise Sharks will be publishing our mid-month market update for the Northern Palm Beach region. Inventory continues to climb and we expect to report brand new 11 month highs. Pending home sales will be up but, unless a whole lotta buying happens over the next few days, we will fall way short of the 40% growth we saw last year over the same period.
Stay tuned, be informed and if Paradise Sharks can help you make wise real estate decisions please feel free to contact us at 561.308.0175 or firstname.lastname@example.org