Jupiter Real Estate: January Market Update

Hey everyone,

The Jupiter real estate market has undergone a significant shift from a sellers’ to a buyers’ market within the past year, as seen by declining sales and increasing inventory amid rising interest rates and tightening financial conditions. While this is true, January and the new year have some investors feeling optimistic about the future as data has begun to show the top in inflation. So far, according to the U.S. Bureau of Labor Statistics, we have seen a steady decline in the inflation rate since June, where we peaked at 9.1% to the most recent print in January at 6.4%. While this has made many people optimistic, as seen through the record number of inflows in the market, investors need to be careful not to be offside and to use more than one data point to formulate their decision.

Not much has changed from a month-to-month basis within the single-family real estate market in Jupiter, Florida. While it has remained resilient compared to other areas of the country, the data has remained gloomy throughout January. Since November 2022, we have seen a consistent monthly inventory of about 250 single-family homes. Specifically, January had an active single-family home inventory of 242, up just 2.54% from the previous month of December. On the bright side, we have seen a slight increase in buyers, with the contingency rate decreasing and the number of homes sold slightly increasing. While there has been a slight increase, it is so small, in my opinion, it is nothing to get too excited over.

When we look at the data from a yearly view and compare the changes from where the market was in January 2022 to January 2023, we begin to get a much clearer picture. It provides individuals insight into the impact of these rising interest rates and tightening financial conditions on the market. For single-family homes in Jupiter, closed sales were down about 6.9% from 58 to 54 in January last year. In addition, the median sales price has dropped slightly by about 6.6% from $967,500 to $903,500. Where people notice the most significant change is regarding inventory. In just one year, the supply of inventory increased 95.2% from 124 to 242, with the months’ supply of inventory up just over 140% from 1.4 to 3.4, a drastic increase from January of last year.

Over the past year, this market has shifted from a seller to a buyer’s market, with most homes remaining on the market for over three months. Many have noticed this change and the effects that it has started to have on home prices. While many sellers have remained stubborn and either have decided to wait to sell their homes or will not decrease the price, others are beginning to realize they might not get the same price for their homes as many people did last year. This is because the financial conditions have changed, buyers do not have as much spending power as last year, and the supply has increased significantly. To me, it seems like the market might take longer to digest the effects of this significant increase in inventory, especially since the median sales price is only 6.6% lower than a year ago while the supply has nearly doubled. This is something that I will continue to watch in the future to see if sellers remain resilient or start to lower their prices to compete against the rising competition of sellers.

As new data is presented, I will continue to share, but for now, make the financial decisions that best suit you. Again, thanks for reading; I would love to hear your feedback!

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