It has taken several years for the dust to settle, but from all accounts the Jupiter housing market is finally bouncing back. Inventory has dropped, prices have stabilized and mortgage rates are at an all time low.
According to Sir Isaac Newton’s third law of physics, for every action, there is an equal and opposite reaction. This may explain the meteoric housing crash and provide some positive insight on the current Housing Recovery. First, we had unprecedented spike in home prices (the action) followed by a dramatic crash in the market (the equal and opposite reaction). The wide pendulum swing in the market set into motion an economic train wreck that has not been seen since the great depression.
Well it appears that the housing market has stabilized. As reported by Les Christie of CNN Money new-home sales are on the upswing. While sales still are not back to normal levels, July’s report that home builders sold new homes at an annual rate of 372,000, a 3.6% gain compared with the 360,000 sold in June and a 25.3% year-over-year increase, is welcome news.
The article quotes Pat Newport, an analyst with IHS Global Insight as pointing out that: “New-home sales data has been revised upward after the initial report eight months in a row and these will be revised upward again. That tells us that the market is getting back on track.”
The Census Bureau numbers are above most industry expectations. The article specifically refers to the South Florida market gaining enough traction that some builders are raising their process and selling out projects and people actually camping out for the opportunity to be the first to buy – sound like old times.