New 5 month low as buyers scramble for units
Palm Beach County condo sales have dropped for the second straight month to the lowest levels we have seen since our February report. Is demand waning or is supply the problem? Really a little of both with a twist of seasonal factors mixed in for flavor. Overall, the supply of condos in the Jupiter area has dropped about 10% since the beginning of the year but we are virtually unchanged from inventory levels of a year ago.
We recently closed on a Singer Island unit and when our clients were down looking about 7 weeks ago there were 5 units in the development to choose from. Today there are none. Many sellers have the best units "priced ahead of the market" as we have seen prices on Palm Beach County condos rising each month since February. While we will not publish our mid-July price changes until at least tomorrow we can tell you they are up again to another new six year high. People know what next season is going to mean for prices. Look around at your favorite restaurants and beaches this summer. Are you seeing larger than normal "summer crowds"? We certainly are in North County. Mid week waits in July at places like Food Shack were rare occurrences in past years and now they are the rule. Over the weekend we waited the better part of an hour for a table at The Riverhouse. The area, it is a changin'.
But we cannot ignore the facts and that is Palm Beach County condo sales in the Jupiter area have dropped again. Down to a new 5 month low. Down 16% over the past 30 days. Down 10.5% from year ago numbers. Worth watching; certainly. Worth worrying about; absolutely not. The market is healthy and buyers are scrambling when the best new deals come around. Just look at GL Homes newest community where a lottery was held 9 days ago. A lottery? Yes, with over 3,000 names on a waiting list for a community with a total of 454 homes and investors were not allowed to participate. The first release was gone in a blink of an eye with a large majority who didn't get in on "the deal" still out there looking for the right home. The first release homes will not be available until the fourth quarter of 2015.
So there is really nothing to worry about with condo sales dropping. The real fact is there just aren't enough well priced condos out there to satisfy demand. Always interesting, always fun.