[New post] Jupiter home sales hit 8 month long downward spiral
Tom Priester posted: " There is no doubt that this virus, coupled with Florida, and Jupiter's growing reputation, presented a perfect storm for the Northern Palm Beaches real estate market. Million dollar home sales exploded and brought median prices across the board highe"
There is no doubt that this virus, coupled with Florida, and Jupiter's growing reputation, presented a perfect storm for the Northern Palm Beaches real estate market. Million dollar home sales exploded and brought median prices across the board higher with them for what has been a very wild ride. The recession caused by the pandemic was met with a federal government happy to flood the market with more cash than ever seen before in history and the lowest interest rates anybody had ever dreamed of. Home inventory levels have dropped to depths not before experienced. Perfect storm indeed.
The increased demand showed the weakness of a dated home inventory in an area where relatively few new construction products were available. Many years of under building had caught up with us. Now many new home communities are gingerly releasing new homes and seemingly raising prices with each one.
Towards the end of April, the million dollar buyer pulled back in the Jupiter area. Dramatically. Pending home sales above that number dropped 53% over the next 4 1/2 months. We saw median single family home prices in the Northern Palm Beaches drop from $726,500 to $675,000. The "fear of missing out" had left the market. Sales slumped with the price decline and some felt perhaps the bloom was coming off the rose. The problem was, and is, inventory levels remain at ridiculously low levels and no real positive signs that they will soon improve.
As of December 1st, home inventory levels in the area fell for the 4th straight month. During November, they tumbled another 4.5%. Compared to year ago numbers they are down 64%. There is literally nothing to buy in many neighborhoods.
As quickly as the million dollar buyer disappeared in April, they reappeared for a month, when pending home sales above that threshold jumped an amazing 36%. We are seeing median single family home prices rebound and in November they have jumped 3% to recoup $20,000 of their recent losses. However, over the past 5 weeks the top of the market buyer has once again pulled back a bit. What they buy, what they pay, once season gets here will go a long ways in determining which direction the overall market heads.
The lack of inventory remains the biggest problem for Jupiter home sales at this time. Over the past few weeks, we are seeing the "fear of missing out" return to the market. Representing buyers has never been tougher. Overall, pending home sales in the Northern Palm Beaches, despite that crazy month above the million dollar mark, fell another 6% in November. They have now fallen for 8 consecutive months. Down 26% compared to year ago numbers. We have not seen Jupiter home sales this low now for 19 months. That's a long, long time.
Where we go from here is going to be driven by macro-economic news, political hatred and divide, the stock market, the pandemic, interest rates, inflation, our national debt and anything else that effects consumer sentiment. So many things in the air as we wind down what has been the craziest year ever. Will limited supply and normal seasonal demand drive home prices higher in the Northern Palm Beaches, or will we settle back down into a more normal, albeit slower, Jupiter home sales environment. Time will tell. It always does.
Paradise Sharks Real Estate has been doing nothing but real estate for decades and are here to help. We take great pride in taking care of our customers and providing value that in this market is hard to match. With current market conditions, there are few homes in the Northern Palm Beaches that we cannot list for a total commission of 3% and that includes a 2% co-broke so many brokers have been using this year. If we handle both sides of the transaction we usually can lower the total commission to no more than 2%.
Our consultations are complimentary and easy to schedule at 561.308.0175 or tom@paradisesharks.com. We take pride in doing exactly what we promise and if we ever break that promise, the promise of trust, we are happy to listen to your concerns and if you want to fire us then we would insist you do, as we have failed in our mission to help.
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