If you are a homeowner in the Jupiter area, stand up, jump up and down, wave your arms in the air and scream hell yes. Then quickly sit down because that is where the value is going from here. Down.
Paradise Sharks told you in this column back in February that “all signs have been flashing the green light for home prices to start moving higher in the Northern Palm Beaches”. Since then prices are up 11%. Last month in this column Paradise Sharks told you “there are certainly things we need to watch as the threat of a recession is out there and the current coronavirus scare is certainly adding fuel to the fire”. Today we are telling you Jupiter home prices are going to fall from these levels.
Sales that closed before the end of March were pretty much unaffected, even though by the middle of the month our government had started to shut things down. We personally went into quarantine on Sunday, March 15th, but at this point my patience is running thin. We were in the middle of real estate season here in the Jupiter area. Our best time of the year. This year during March, pending home sales in the Jupiter area were down 19%. Last year they were up 11%. For the first 5 days of April, they have fallen another 8.5%. Prices are heading lower because of a significant decline in demand. It’s simple economics.
The government shut down of America is going to have significant economic effects that there are still no way to measure with any level of accuracy. Jupiter home prices are going to be under pressure. The fall may be insignificant, the fall may be huge. There are still people who have to buy and soon more will be buying. There are still people who have to sell and soon more will be selling. Right now the market favors buyers and that is the big change everyone needs to understand.
Don’t panic. The sky is not falling and as each day passes I am becoming more and more convinced that the way this entire situation has been handled by Washington was a bad, and very expensive, mistake for most Americans. Paradise Sharks is open for business, still staying 6’ away and not touching anything without an antiseptic wipe. Don’t be afraid, but do be informed. That is true for real estate and it is true for pandemics.
If you want straight talk about your real estate decisions feel free to contact us anytime. Paradise Sharks can list any vacant home, anywhere in Palm Beach or Martin County for 3.5%. We can list any home in the Jupiter area for 4%. We give almost all of our buyer clients a substantial credit at closing. We are different…..by design. If you would like to learn more please feel free to contact Paradise Sharks for a complimentary consultation at firstname.lastname@example.org or 561.308.0175.