As we head into the second half of June the real estate market here in the Northern Palm Beaches is performing about as expected. Both pending home sales and the number of homes buyers have to select from continue to move lower. But to understand what is going on in your neighborhood you need to dig deeper.
Pending home sales in, and around, Jupiter are down again over the first half of June and currently sit at the lowest levels we have seen since February. Compared to year ago numbers they are down by almost 10%. Go back to June 15, 2015 and they are down about 19%. Interest rates are fantastically low but the Fed did raise their rate again yesterday for the 3rd time since December. Past increases have had little effect on home loans, so far, but keep your eyes open after this third increase.
Is it demand that is the problem or is it the location, type, quality, or price of the homes that are available for buyer to select from? It’s actually a bit of everything. Inventory levels, as of today, are down again for the 4th straight month and are down 5% from last year. But there are significant differences in the strength of today’s market depending on house type, price and location. For instance, since so far on June, while pending home sales are down throughout the Northern Palm Beaches they are actually up by 7.7% in Hobe Sound while in Juno Beach they are down by 23%. A single family home in Jupiter priced under $500,000, in good condition can attract bidding wars and sales prices above list prices while a remodeled condo or town home in Juno Beach can be sitting there at very favorable pricing and not getting any action.
A unit in a Juno Beach oceanfront building we watch closely that was listed at $529,000 earlier this year just went under contract at $367,500. The most recent comparable sale was a year ago at well over $400,000. Both buyers and sellers need to have complete information to make knowledgeable decisions in today’s real estate market or they could make very expensive mistakes. Prices have been rising, but we are starting to see them stabilize, especially in the single family home market. Affordability remains a big concern in the Jupiter area.
Always seek knowledge when doing anything real estate. Paradise Sharks insists our clients are informed and because our boutique culture is customer driven we can also provide lower prices and value our competitors only dream about. Always interview three real estate brokers whether you are buying or selling. Find out how they are going to help you meet your goals and what they are going to charge you. But above everything find out how they are going to inform you. We would love the opportunity to earn your trust so reach out to us anytime at firstname.lastname@example.org or 561.308.0175.