Interest rates remain at fantastic levels, but finding a Jupiter home to buy is becoming more and more difficult. The same can be said for the other communities that make up the Northern Palm Beaches. As of today, the number of available properties has dropped for the 5th straight month. Over the past month, inventory levels in the Jupiter area have fallen another 5%. Compared to year ago levels, buyers have 6% fewer homes to select from.
But buyers are buying, and during July pending home sales increased for the first time in four months. The amazing thing is this is the middle of summer. Pending home sales just do not go up in July. Last year they were down over 9% in July. In 2015 they were down 3%. In 2014 down 10%, 2013 down 11%. You get the picture, sales in July just do not improve. Not in July. Not with inventory dropping. But up they did go, this year. That has never happened as long as Paradise Sharks has kept records. Not a big jump mind you, but as of today, there are almost 2.5% more homes under contract in the Northern Palm Beaches than last month at this time.
Strong buying has helped push prices higher. A median single family home in the Jupiter area was up again the first three weeks of July, but settled down a bit over the past week. Median condo prices dropped, as of July 15th, for the first time since February. Gains over the past 6 months have been tremendous but watch for that trend to change.
Maybe the economy continues to improve. Maybe it doesn’t. Over the past few weeks, we have spent time on Michigan Avenue in Chicago and Newbury Street in Boston and from a street level perspective retail does not look strong. The best restaurants are packed but you can shoot a cannon through any major department store I have been in lately. The stock market is at record levels, and interest rates remain stubbornly low, almost laughing at the Fed’s three attempts to raise them since December. Last week, the Fed promised again that they are going to start unloading the amazing 4.5 trillion in US debt they are holding. They have been buying for years as nobody else seems to want to. When was the last time you bought a US Treasury Bond? Now, the buyers are becoming sellers and things in the interest rate arena are about to get interesting. Very interesting.
Sales right now of Jupiter homes remain strong. Historically strong for July. Interest rates remain favorable but potential change is in the air. The economy looks solid, but is it? The mood in Washington is less than one of cooperation and the drive to improve our country seems adrift. The value of one’s home is a critical component when it comes to consumer sentiment. Whenever doing anything real estate, please do yourself a favor, and interview at least three brokers. Get educated. Not only will you make a more informed decision, you will save money, whether you are buying or selling. If you are anywhere in the Northern Palm Beaches, Paradise Sharks would love the opportunity to interview to be your broker. If you don’t know the questions to ask, we will help you. Contact us anytime at firstname.lastname@example.org or 561.308.0175.
We won’t sell you anything, but we promise to teach you everything you need to know.