[New post] Jupiter real estate sales stall, nothing to buy, as prices fall
Tom Priester posted: " The craziest real estate market of our lifetime, just keeps getting more and more crazy. It's like everything else that has been taking hold across America. Nobody knows who, or what, to believe and if anybody tells you they know where the Jupiter real e"
The craziest real estate market of our lifetime, just keeps getting more and more crazy. It's like everything else that has been taking hold across America. Nobody knows who, or what, to believe and if anybody tells you they know where the Jupiter real estate market is heading from here they are nuts.
The facts are pretty straight forward. Sales of single family homes, and condos, in the Northern Palm Beaches dropped in October to the lowest levels we have seen in well over a year. Single family home sales were the slowest we have seen in 17 months. Condo sales saw their lowest numbers in 13 months. Jupiter real estate sales, and those in the neighboring communities have not been strong.
Go back and look what sales volume was a year ago and the numbers are dramatic. Condo sales are down 15%. Single family home sales are down 39%. Nutty numbers, but again, we are living in a nutty world.
Certainly, part of the problem is there just isn't much to buy. Inventory numbers were down another 12% in October. Down a nutty 65% compared to year ago numbers. Another all time record low and if you want to experience true frustration, sit down and talk to any of your friends or family who happen to be looking for a home in this nutty Jupiter real estate market. The lack of options for buyers is mind boggling. Homes that are marketed and priced properly are selling immediately in many instances. Showings galore and multiple offers within a day or two are the rule, not the exception.
Median home prices have been under pressure. Median single family home prices were down in October for the 2nd straight month. Down another 2% to $675,000. Considering just two months ago, the median price was $50,000 higher at $725,000 it's been a significant pull back. As of this minute, median prices for single family homes in the Jupiter area are up 12.7% compared to a year ago.
The two most important things to watch, the things that will dictate where we head from here, are home sales above a million dollars and interest rates. The government and the Fed are going to do everything they can to keep rates low. Interest on a national debt of $39 trillion is a big number. Each basis point of increase can have a dramatic effect on what is this countries 4th largest budget item. Interest rates on conforming 30 year loans dropped again last week but still remain 32 basis points higher than the all-time lows buyer's enjoyed back in February. If inflation keeps spiking, and the Fed loses control of the situation, watch out below.
Million dollar home sales are another huge key to where this market goes. Pending home sales in this market segment started to fall dramatically back in April. Between April and September, they tumbled 53%. That fall is the major reason for the pull back we have seen in median single family home prices. Then, out of the blue, in the middle of September, buyers of homes at the top end of the market starting writing contracts. Pending home sales above a million dollars spiked a dramatic 36% between September 11th and October 26th. Since then, they have pulled back 6.5%. Where they go from here is a huge factor in where this market goes.
All I can tell you is if you are even thinking of buying, or selling a home, in this market you had better have a real understanding of the metrics surround every property. Buyers better go into any purchase with their eyes wide open. Over pricing a home can be a big mistake for sellers even with the lowest inventory anybody has ever seen.
If you are selling, understand if your marketing and pricing strategies are well thought out you will probably sell your home lighting fast. Right now you should get top dollar. You should also be getting a great commission and world class customer service. Paradise Sharks Real Estate can list most homes these days for a total commission to our clients of 3.5%. That includes a 2.5% buyer's broker commission. More and more brokers are starting to utilize a 2% co-broke strategy. If that is something our clients want to look into, on most listings, we can drop the total commission to 3%. If we handle both sides of any transaction we usually can drop that total commission to 2%.
If Paradise Sharks Real Estate can ever be of help, in any way, please feel fre to contact us anytime at tom@paradisesharks.com or 561.308.0175. If you have a question, we are happy to answer it. If you are looking for advice, we are happy to give it. If you want an honest evaluation of what your unique situation we are happy to get it. It's what we do and we are proud of what we have accomplished in a career that has spanned decades.
WordPress.com
No comments:
Post a Comment