Pending home sales in Jupiter and South Florida bounced back in June, matching the highest level in the past two years and well above year-ago levels, according to the National Association of Realtors® (NAR). Every region saw monthly and annual gains.
“The housing market is clearly superior this year compared with the past four years,” said Brad Ball, Broker-Associate for Frankel Realty Group in Jupiter, Florida. “The latest increase in home contract signings marks 13 consecutive months of year-over-year gains. Actual closings for existing-home sales have been notably higher since the beginning of the year, and we’re on track to see a 9 to 10 percent improvement in total sales for 2012.”
Pending home sales could be even higher, but low inventory could be holding back sales in some areas – a relatively new challenge.
“If credit conditions returned to normal, and if we had more inventory, especially in the lower price ranges, more people would become successful buyers,” Ball said. “In an environment of historically favorable housing affordability conditions, it’s frustrating to see some consumers thwarted in the process.”
“Low inventory can be cured by increasing new home construction,” Ball says. Based on the number of new communities in the pipeline from National Builders, Ball projects housing starts to rise by 26 percent this year and another 50 percent in 2013.
“If housing starts do not rise in a meaningful way over the next two years due to the difficulty in getting construction loans, and barring an unexpected shift in the economy due the policies of the current Administration, the steady shedding of inventory could lead to shortages where home prices could get caught up in bidding wars by 2013,” Ball said.
For more information on homes for sale in Southeast Florida contact Brad Ball of Frankel Realty Group at 561-373-8700 or email him at firstname.lastname@example.org. To search MLS for available homes for sale in Jupiter, Tequesta, Palm Beach, Jupiter Island and Palm Beach Gardens visit our website at www.frankel-realty.com.