We always marvel at how time goes by so damn quickly. This is Paradise Sharks last deep look at the Jupiter area real estate market in 2016, and what a year it has been. Median single home prices in the Northern Palm Beaches will be up again for the 5th straight year, adding another 10% and bringing us within 8% of all time record highs.
It has not been such a great year for median condo prices in the Jupiter area that look to be about flat since January. Here, we also lag the record median prices set back in 2006 by a whopping 27%.
As we wind down another year, the real estate market in Jupiter and the surrounding communities is looking tired. Hopefully, we are not watching the market head into hibernation but right now we are looking for good news. It isn’t jumping off the pages.
Pending home sales as of today, are down for the 6th time in 7 months. In our last report, we were a bit surprised to see a spike in pending home sales. That appears to have been nothing more than a post election buzz and it was short lived. Over the past 2 weeks, pending home sales in the Jupiter area are down over 5%. Over the past 7 months, they are down 33% and currently at the very worst levels we have seen in years. We need home buyers to get energized. We need them to wake up.
Inventory appears to be playing in their favor as the number of homes on the market for sale is up today for the 4th straight month. Inventory levels are up 14% since last year on this date. However, much of that inventory tends to be richly priced. As of this moment, the average list price for all properties on the market for sale in the Jupiter area is a rather astounding $529,000. Of the homes under contract, the average list price is $369,000. Of the sales so far this year, the average sales price is $322,500. When sellers are asking so much more than buyers are willing to spend, sales stall. So far prices have been holding up but you have to really ask how long can this continue.
Condo prices have already cooled and it is going to be hard for single family home prices to not start doing the same. Interest rates are up over 1/2 point but thankfully have stabilized a bit. Many signs pointing to higher interest rates ahead and that will not be a boost for the market if they climb too high.
Sellers will still need to lower their list prices. Over the past week or so, 145 on them did. That is about 6.5% of all people trying to sell a property in the Northern Palm Beaches lowering their price in the past few days. Significant. We hope buyers are going to start buying. Seasonal activity that in the Northern Palm Beaches we always rely on. Are they on the way? We hope so.
If you are doing anything real estate, understand the market surrounding any property. Each property is different and if you do not understand the supply and demand, the forces that dictate price, then you may be in trouble. Interview at least three real estate brokers, listen to what they say, ask questions. Paradise Sharks LOVES to be interviewed and would be honored to have the opportunity to earn your trust and your business.