Welcome to October. Autumn in paradise means many things and one is the highest risk period for serious hurricanes and we have one swirling out there right now. Batten down the hatches if you are anywhere in Matthews’ path as right now he is a big and dangerous storm.
It also means a great time for home buyers who are looking for the right opportunity. Seasonal historic trends show us that pending home sales should be in a downward trend for the next few months and inventory should be increasing providing buyers better choices. Interest rates this week plummeted with a 28 basis point reduction in the rate for a conforming 30 year fixed note. As of this morning, we are once again at a brand new all time low of 3.35%. Yes, it’s a good time to be shopping for a home.
The inventory of homes on the market in Jupiter and the surrounding municipalities is up as of today for the first monthly increase we have seen since May. This is a trend that should be continuing so buyers not only have record low interest rates but a better selection of homes. Home prices have been on the rise but sales are slowing. In September we had fewer single family home sales in the Northern Palm Beaches than any month since February. However, prices have been rising. Up for three straight months to new 10 year highs.
Condo prices over the same period have been unchanged and we are seeing some downward pressure over the past couple weeks. With slower sales on the horizon we see the trend to lower prices on both single family homes and condos in place for the next few months. Certainly not drastic reductions but downward pressure.
Pending home sales in the Jupiter area have been down about 6% over the past month. This was the 5th straight monthly drop and Paradise Sharks sees further drops ahead and frankly would be shocked if we saw any increase in this metric until next year.
The upcoming election is no doubt playing a role in many ways. Uncertainty is in the air and that is not good for a robust real estate market. If you are uncertain about what to do please feel free to contact Paradise Sharks at 561.308.0175 or firstname.lastname@example.org. The next couple months may be your best time to find the right home but make sure you understand the numbers. For sellers your best days may not be back until after the holidays.