Another signal that local real estate market may be changing
Median home prices in Jupiter and the entire northern Palm Beach County region had been on a roll. Back on November 1st the median single family home in the area was selling at $335,000. After a 5 month stretch of price increases that number had shot up to $375,000. Up over 11% in a relatively short period of time and back to the highest level we have seen in years.
All signs pointed to more good times ahead with inventory shrinking for the first time in 7 months. Pending home sales up for 4 straight months. Supply down, demand up means prices to rise. Correct? That was before and this is now. A market nobody has ever seen before. Interest rates dropping since the 1st of the year after the Fed stopped buying 30 billion dollars of American debt each month. A move that should have had interest rates moving higher. Significantly higher. But that was before and this is now.
Different rules and the very reason why anyone who is contemplating a purchase or sale of real estate needs to be paying close attention to the signs. After months of good news we are seeing signs over the past week. The May 1st pending home sales numbers changed and not for the better. The Fed announced another 10 billion dollar monthly reduction in their debt purchases. While we do not see how rates can go much higher the market has reacted on the latest news and interest rates are up about 10 basis points to the highest levels we have seen in weeks.
Now today we publish our analysis of median home prices in the region over the past 30 days. They have stalled at $375,000. No change since our report last month at this time. Is this bad news? No. Is it another sign that the market may be changing, slowing, reversing course? Maybe but it is too early to say for sure. Again these are regional numbers and your neighborhood numbers will have a story of their own to tell. Listen to them.
We will next be reporting on the number of sales in the region over the past 30 days. Will they also give us a sign? Stay tuned. Always interesting, always fun.
Paradise Sharks Real Estate