It happens every year. Like clockwork. When it comes to writing purchase contracts for real estate in the Northern Palm Beaches once we hit May 1st the volume of new contracts starts to fade. And they will continue to fade through the summer months and then some. Historically, we wait at least 5 months before we see our next “uptick” in pending home sales and it isn’t unusual to see them continue to fall for up to 9 straight months. The reality is, those of us in the real estate business know the slow down is coming. Our beaches are far less crowded and we have more time to enjoy them. It’s “summer vacation”.
This year is no different and as of May 1st pending home sales in the Jupiter are down almost 5% over the past two weeks. Compared to year ago numbers pending home sales are down over 10%. Looking back to two years ago, and the record breaking 2015 calendar year, pending home sales as of May 1st are down 18%. The reality is we are starting off “summer vacation” with the lowest pending home sales numbers we have seen in many years.
There are positives. Even at these “low” numbers pending home sales in the Jupiter area were up big since the middle of January. Up by 66% even with the recent pull back. Prices too have been on the move higher. The median priced single family home in the Jupiter area is up over 6% since February. The median priced condo has done even better, up 9% over the same period.
What happens to demand, sales and prices over the coming months will be heavily dependent on inventory, interest rates and how strong the overall economy remains. Still a big divide in our nations capital to say the least. Interest rates are part of that political system and after dropping for 6 straight weeks jumped 11 basis points last week.
The number of homes available for sale in the Jupiter area fell as expected for the month ending April 30th. It was the second straight monthly decline and again in line with “summer vacation”. Not many people want to list their homes this time of the year. They are on vacation too. Buyers will have fewer options in a market where there hasn’t been a lot of well priced opportunities in good condition. It won’t be for at least 4 to 5 months before buyers will have more choices than they do today.
Will interest rates and a strong economy be enough to keep prices moving higher in the Jupiter area over the summer months? It’s doubtful, but if demand doesn’t pull back too drastically prices probably won’t fall much either.
It is going to be an interesting summer for real estate here in the Jupiter area. If you are buying, or selling, please get informed. Interview at least three brokers and ask tons of questions. Paradise Sharks loves to be interviewed and is always honored to have the opportunity to earn your trust, and your business. Contact us anytime at 561.308.0175 or firstname.lastname@example.org