Fewer buyers sign contracts during the summer months here in paradise. That is just the way it is. People are on vacation, enjoying these amazing summer days at the beach and real estate takes a back seat. Buyers are out there, but finding a home they like, or can afford, is difficult and adds to the slowdown.
Looking at pending home sales compared to last month at this time we see another decline. It’s our 3rd straight monthly decline and the number of homes under contract has tumbled over 22% during that time. BUT, and you might notice this is a big but, so far in July we are seeing some strength in sales that is highly unusual for this time of the year.
In fact, since July 1st, pending home sales in the Jupiter area have actually increased. OK, not by much, but they are higher today that they were 15 days ago. Last year during the same period pending home sales fell almost 5%. The first half of July brought a decline in pending home sales in 2016, 2015, 2014, 2013. In fact, they have fallen during this time period every year since Paradise Sharks has kept detailed records and that is a long time.
But not this year. For the first time in eons, the number of homes under contract is higher on July 15th than it was on July 1st and that’s a BIG deal. What makes it even bigger is the median price of single family homes in the Jupiter area keeps climbing higher and higher. As of July 1st, the median price of a single family home in the area was up for 5 straight months. Up from $426,500 to $460,000. That is a jump of almost 8% and that is BIG news. But the even BIGGER news is that during the month of July median home prices, just like pending home sales, tend to fall. But, just like pending home sales surprised us with a highly unusual turnaround, so do prices. As of this morning, median home prices in the Jupiter area are up again. Up another $5,000 to $465,000 and inching even closer to the all time record highs we set way back in 2005.
Inventory continues to decline so no surprises here. We expect even fewer options for buyers over the next month or so. As summer ends, watch for additional inventory which historically reverses trend by the end of August. Interest rates moved higher this week after dropping for 4 straight weeks but still remain historically low.
Sellers remain in control of this market but keep a close eye out for changes. Condo prices have pulled back a bit and we keep pointing to much discrepancy in just how strong the market is based on location, condition and prices. As always, buyers and sellers should interview at least 3 brokers when doing real estate of any kind. Paradise Sharks is always honored to be included in any interview and you can schedule yours today by reaching out to us at firstname.lastname@example.org or 561.308.0175.