No the sky isn’t falling. But local real estate prices are high, interest rates have jumped 21 basis points over the last week and we have seasonal trends to throw into the equation. As of September 15th, pending home sales in the Jupiter area have been up over both the two week and one month reporting periods but the gains have been marginal. When looking at year ago numbers we trail by about 4%.
The good news for buyers is they have more selection with inventory levels up for the first time in 5 months. Again, the increases over the two week and one month reporting periods are marginal but watch for more homes on the market in the coming months as sellers look to take advantage of prices that are much better than they have seen for years. As of today, inventory levels are already 13% higher than last year.
The problem many buyers face is finding what we call “good inventory”. Homes that have been taken care up, updated, in good locations and not priced higher that the current market. We still see plenty of demand for the best new opportunities.
There is some divergence in prices when looking at condos compared to single family homes. Condo prices have always been far more volatile than their single family cousins. Here in the Northern Palm Beaches, watch for the median condo price to be under downward pressure starting this month. You see September is the month we almost always have the lowest number of condo closings in Jupiter and the neighboring communities. Summer is ending and we have the “shoulder season” upon us. Condo prices should stagnate and pull back a bit until our northern and international friends start impacting the market in the first quarter of 2017.
Single family home prices have been much firmer with solid median price gains since July. Interest rates will impact this market as will seasonal factors. We may see another month of gains and then a leveling, or softening, on median single family home prices until the first quarter of next year.
If you are looking to buy a home the next few months should provide you some good opportunities. If you are selling a home you will need to not only have your property professionally marketed to get the best price you will need to pay close attention to prices in your neighborhood. We keep pointing to the upcoming election which is still 54 days away that has a lot of America very nervous. Watch for how this election affects the economy as if our new leader can rally the country and get us growing watch out as next season could be a big one. If not, who knows. The next move in this market will be led by the condition of the overall economy and the mood of the snowbirds when they flock back into town.
Please remember when doing anything real estate to interview at least three brokers whether you are buying or selling. Make sure you find one that can answer your questions about how they will professionally assist you in meeting your goals. If you are buying or selling anywhere in Palm Beach or Martin County, Paradise Sharks would love to show you what we can do. Contact us anytime for more information at email@example.com.