North County Pending Home Sales Drop for 2nd Straight Month
As of July 1st the number of pending home sales in the northern Palm Beach County dropped almost 6% over the past 30 days. They now sit at a 4 month low and trail year ago numbers by almost 11%. Is the market changing? Should we be concerned? Yes and no.
As we keep telling you, each individual property marches to it's own set of statistics. What is true for your home may not be the same for your best friend's home a couple miles down the road. This months numbers are a great example as pending home sales in Hobe Sound are actually up 39% over the past 2 weeks. In Jupiter they have dropped a little over 4% during the same time period. If you are interested in making knowledgeable decisions then you have to know the market forces that are affecting your homes' value.
Each year after our seasonal visitors head north the real estate world chills out a bit. It is a welcomed relief as we have more elbow room at our favorite watering holes and restaurants. We get our town back. It used to be for 6 months but that keeps shrinking and the summer months keep getting busier. The vibe of what is going on in the North County region is cool. Things are happening. So yes the market is changing; it does every year around this time. Last year at this time we reported an 11% month over month decline in pending home sales. This year it is only 6%. Are we here at Paradise Sharks concerned? Not even a little bit.
On the front lines the buyers appear to be ready, willing and able with not enough inventory to satisfy their demands. We still think things will level off a bit over the summer months. But while sales have been slowing prices remain heading only one way and that is up, up, up. We reported in this column back on June 21st that condo prices in the area jumped again to the highest levels we have seen in over 6 years. While we won't have final numbers on monthly singly family home prices until next week we expect to see them up again for the 8th straight month. And watch for a very important milestone as we are expecting that number to hit $400,000 for the first time since 2007. We have only had three years in this area where that number exceeded $400,000. We are getting ready to add 2014 to that list.
So the summer sales slow down is in full force but much appears to be inventory related and not demand related. Prices continue to move higher and we see no reason to think this market is changing for awhile.
Paradise Sharks Real Estate