In real estate, nothing is more important than information and yes that includes location. I had a comment on one of our blogs this week that said prices are way overinflated and are right back to 2005 bubble prices that caused me to pause. After all, we have been telling everyone who will listen that the median single family home price in the Northern Palm Beaches had fallen below where they stood a year ago.
That median single family price is actually 15% below the highs we set back in 2005. The fact is the median condo price in the Jupiter area is actually further behind record territory with median prices 23% lower than those “bubble” levels. So many factors influence real estate and there are always concerns but numbers are so critical and that is why we follow them. If you are doing real estate without listening to the market you aren’t going to make fully informed decisions.
Two statistics we track daily are inventory levels and pending home sales because they are the lifeblood of the real estate industry. It’s “summer vacation” and if you are a regular reader of Paradise Sharks articles you know what that means. Pending homes sales and inventory levels will fall during “summer vacation” and that trend is firmly in place.
As of today, inventory of homes on the market for sale in the Jupiter area have dropped about 4% since July 15th. But that isn’t the important factor. That would be the fact a home buyer today in the Jupiter area has a far larger selection than they did a year ago. In fact, inventory is 12% greater and normally would lead us to believe prices may be under downward pressure. We have seen prices pull back a bit but so have sales when compared to the record breaking year that 2015 turned out to be.
Over the past two weeks, pending home sales in the Jupiter area are down almost 5%. From one month ago they have declined by over 9%. They are down for 3 straight months and should continue falling. Perhaps the most important thing we can tell you is that today there are 13% fewer homes under contract than a year ago. Higher inventory and lower sales usually add up to lower prices and we have seen that certainly in the single family market.
Other factors are so important when asking where prices are headed. Things like rental rates (which continue to climb), quality of inventory (which in many neighborhoods is still dismal), interest rates and availability of money; the list goes on. New FHA financing rules for condominiums, for instance, should provide a huge boost to prices in many condominium developments.
Each and every property is different and one cannot make an informed decision on any home without knowing the unique facts surrounding it. The person who made the comment on my blog this week will probably by disappointed but the way Paradise Sharks sees it, median prices of both single family homes and condominiums will be moving higher for at least the next 30 to 60 days. But that is the median price, not your house and there is a big difference. The metrics surrounding your house may be totally different so seek knowledge if you care about it’s value.
If Paradise Sharks can ever be of help in any way with anything real estate please contact free to contact us at your convenience. Easy to reach at 561.308.0175 or firstname.lastname@example.org we would love the opportunity to be of service.