ZILLOW SAYS THIS IS A “MEDIUM” MARKET
April 11, 2017 | Richard Sites
Zillow is a widely used website for real estate information. While the online estimates provided by Zillow can be wildly off the mark, their analysis of the market can be useful since they have such a large data set to work with.
Yesterday, in my Inbox, I found a Zillow market update for the Jupiter zip code 33458.
Zillow says this market is “medium”, so what does this mean?
Buyers Market vs. Sellers Market
In residential real estate, markets are usually deemed to favor either buyers or sellers depending on supply and demand.
The absorption rate is the number of months it would take to sell the current number of homes for sale. When this rate is very low, the market favors sellers since homes are selling very quickly.
“Normal” is considered to be a 5-6 month supply of homes for sale and right now, zip code 33458 has a 4.6 month supply of homes for sale. This “normal market” means neither buyer nor seller is being favored.
However, demand for homes is still high as evidenced by all the new homes going up around here. Builders like Kolter, DiVosta and Toll Brothers would not be in the area if there was not demand for new homes.
Days on Market
Yesterday, I posted (on You Tube) my first quarter update on the real estate market for Northern Palm Beach County. What is interesting is that 1,208 homes sold with a median time on the market of just 42 days.
And 41% of the sales happened in less than a month and the median home price is now $344,000.
Part of the issue is the cost of new homes in this area.
New home prices in this area start around $600,000 for a single family home and $450,000 for a townhouse. In addition, you might have to pay a “lot premium” of tens of thousands more.
The Take Away
If you are buying or selling, you do not have an advantage. When selling, make sure you present a great value proposition and the home will sell. If buying, make sure you have your financing in order before you begin looking at homes or considering making an offer.
If you would like to discuss meeting your real estate goals, please contact me at 561.762.4073.