Here in paradise we expect things in the real estate world to slow down a bit in the heat of the summer. People just do not buy real estate like they do during our “real season”. Pending home sales fall and they have fallen again in the Northern Palm Beaches; down 4.5% over the past 2 weeks, down 7.2% over the past month, down over 13% since this slide began back in April. No big deal, it’s summer vacation.
We expect the slow down but we also see some great signs. In Tequesta, pending home sales have actually jumped 13.6% over the past two weeks. This is why knowing your numbers surrounding any property are so important whenever you are buying or selling. The number of single family home sales in Jupiter during June were the highest monthly sales we have seen ever. Like in history. Talk about a good sign.
Inventory usually shrinks this time of the year and over the past month in the Jupiter area it is down another 3%. Down for the 3rd straight month. But interestingly, it has moved higher over the past 2 weeks. Not by much, but it has moved higher. Last year during the same two week period it was down by about 2%. Buyers have more options. Compared to last year at this time inventory levels are much higher, like over 13% higher. Another good sign.
Interest rates have plummeted this week. The average overnight rate on a conforming 30 year loan is down 11 basis points over the past week to 3.41%. They sit at the lowest levels we have seen since December of 2012 and within 5 basis points of the record all time low. Talk about a great sign for those buying a home with a loan or refinancing.
The median price of a single family home has actually decreased over the past year in the Jupiter area. Add up the good signs; cheapest money in history, lower home prices, more selection things are looking good.
And things are looking good but interest rates don’t drop like that because the economic picture is rosy. The monetary policy in this country and around the world makes no sense. Our debt is nearing 20 trillion dollars. Do not bet the farm on real estate at this point. Purchase a home you will love living in. That you can afford, in good times and bad, and understand the numbers. Be informed. If the stock market keeps climbing then all is fine in the world of South Florida real estate. But if we get a Brexit that isn’t so quickly brushed aside watch out.
There are a lot of good signs out there but also plenty of reasons to be cautious. If Paradise Sharks can help you with any of your real estate decisions just let us know at 561.308.0175 or firstname.lastname@example.org. When doing anything real estate ALWAYS interview at least 3 brokers, ask lots of questions. Be informed.