Humming that old Tom Petty song as we pour over the final numbers for our November 1st market update. Never has our country been so polarized by an election and while on one hand the entire $6.5 billion dollar campaign has been fun to watch at times, it really isn’t a laughing matter. One week from today it will be over, or hopefully it will be, and then we need to see what happens to the economy, the stock market and consumer sentiment. The real estate market here in the Jupiter area needs some good news.
This time of the year we expect pending home sales in the Jupiter area to slow. It happens every year and we have been saying no big deal but this year it is different. Maybe it’s the election, maybe it’s more, but it is getting ugly and we really need it to stop. It’s becoming a big deal.
Consider these numbers. Over the last two weeks pending home sales in the Jupiter area are down 10.5%. Over the last month they have fallen almost 16%. Last year over the same time period they were down less than 5%. Pending home sales in the Northern Palm Beaches have now been down for 6 straight months and over that span they have fallen close to 40%. Again, some of this is seasonal trends that we watch for but this year the fall has been steeper than we would expect. As of today, pending home sales are over 17% lower than last year at this time. And free falling.
In the Jupiter area, pending home sales are lower than we have seen in years and we need the slide to stop. Will the election help? If the market tracks last year we have two more months of declines ahead of us and that could dig us into a very deep hole. If you are doing anything real estate make sure you watch the numbers surrounding any parcel very, very closely. We just sent a detailed market analysis to a client for a building in downtown West Palm Beach where they own a couple units. Inventory is over 20 months and climbing. Median list price is 125% of median sales price. Yes, you better know your numbers if doing anything real estate.
Buyers have more choices as inventory is growing and that we also expect this time of the year. The number of homes available for sale in, and around, Jupiter is up for the second straight month to the highest levels we have seen since June. Once again, numbers are well ahead of last years with today’s buyers having almost 18% more homes to choose from. More homes to choose from, less buying. Interest rates remain near all time lows so something is different and this market needs a significant shift and one in the right direction.
If there is a bright spot is has been prices which have been solid and holding near 10 year highs. It looks like both median single family home and condo prices will be down this month but ever so slightly. For now. We are seeing price reductions become more frequent and steeper as sellers get anxious with the depressing sales figures. Will the vote next week stop the free fall? Maybe, maybe not. Are prices holding willing buyers off? Many questions and the real estate market is getting most interesting indeed here in paradise. If you care about your homes’ value, or if you are even thinking about buying or selling, please pay close attention and keep informed. If Paradise Sharks can be of assistance in any way please feel free to contact us at your convenience. We are super easy to reach at 561.308.0175 or firstname.lastname@example.org.