Paradise Sharks Real Estate Blog - Blog

Jupiter real estate

Jupiter condo prices are nuts compared to single family prices

9/23/2020

Median Jupiter condo prices have been on a far different path during this pandemic than their single family cousins. Since March, when this Chinese virus started to put it’s vice grips on America, median condo prices are actually down. Over the same period, the median single family home price in the Northern Palm Beaches is up over 14%. Quite the difference. Nuts.

The reality is, the two product types have not rebounded anywhere in tandem since the great real estate bubble exploded back in 2005/2006. At this moment, median single family home prices in the Jupiter area are up 22% from those old bubble highs. Median condo prices today are still down 11% from prices that we had 15 years ago.

It’s hard to believe but that’s reality. The strength of today’s Jupiter real estate market is a bit mind boggling but it’s been a perfect storm of well healed tax payers fleeing bankrupt Northern states and cities, a historic pandemic, the lowest interest rates in history and few option of where to safely invest one’s money. It’s still hard to believe that condo prices are down for the year while single family home prices are up over 21%. Nutty indeed.

The good news is, median Jupiter condo prices have moved higher for the 2nd straight month. Over the past 30 days the median condo price is up slightly from $247,750 to $249,000. If this market strength is going to continue condo prices need to wake up. Sales have been strong compared to year ago numbers, inventory stinks, but condo prices have stubbornly not taken off.

Lots of economic news, much driven by this highly divisive and contested Presidential election, that once over will go a long ways in determining the future path of Jupiter real estate prices. As long as the stock market does not crash, current tax laws remain in place, and Northern states cannot pay their bills, then the top end of the Jupiter real estate market should stay firm. The broader market has significant affordability issues that “give-away” interest rates help but certainly don’t solve. The median single family home price in the Jupiter area is quickly heading towards $600,000 and the median income of the area does not come close to being able to afford this type of housing cost.

Stay tuned, stay informed, and if Paradise Sharks can be of help in any way please let us know. We won’t bite and are super easy to reach at paradisesharksrealestate@gmail.com or 561.308.0175. Decades of experience, our boutique, local, small business culture has kicked the middlemen righty out of the real estate transaction. No franchise fees sent to far away lands, no broker splits, no nonsense. We simply pass those savings directly to our clients where we feel they belong. We don’t sell, we educate, and are here whenever you need us.

Fins up…..

#jupitercondoprices

Jupiter real estate market is crazier than I have ever seen

9/15/2020

I have been doing nothing but real estate for many decades. Building it, selling it, studying it, writing about it. In all those years, I have never seen anything like we are going through right now. Not even close. Some of it’s pandemic, some of it’s politics, but all of it is crazy.

The Jupiter real estate market really starting changing back in 2017 when President Trump created new tax laws. Those laws prohibited the deduction of other taxes in excess of $10,000 from your federal income taxes. At the same time, northern states with high income taxes started having real budget issues and began raising taxes.

It created the perfect storm at the top end of the Jupiter real estate market. People started flooding into the state of Florida and buying expensive homes. In 2017, sales of homes that sold in excess of $1M jumped 11.5% in the Northern Palm Beaches. They broke a record that was set way back in 2005. But things were just getting started.

In 2018, sales of million dollar homes jumped another 15% to another new record high. Last year they jumped another 10.5% and so far this year, sales at the top end of the market are up another 12.3%. Crazy? Hell yes it is. Very crazy. Pending home sales at this minute in the $1M market are up an astounding 117% from last year. Crazy, crazy, crazy.

These sales have pulled up the median single family home price in the Jupiter area. Up from $435,000 in January, 2017 to $575,000 today. That’s a jump of 32% and much of those gains can be attributed to the income tax changes that drove people to the safe tax haven of Florida. This year’s pandemic, and the hate we are seeing on the streets, is fueling that move to non tax states. People have another reason to sell that Manhattan condo and trade it in for a waterfront estate in paradise.

Watch this election and watch it closely. Imagine if the Democrats win and decide to change the tax laws that created the insurgence into Florida. What then? Pay attention, and if doing anything real estate, get informed and make educated decisions. Paradise Sharks takes great pride in ensuring our clients understand what is going on and if we can ever help you with your unique real estate situation, please let us know.

The problem with rising prices in the Jupiter real estate market isn’t usually at the top end. It’s the rest of the market, where the middle class needs to buy homes. Thankfully, the lowest interest rates in history have helped a great deal. Never has money been cheaper, but again pay attention. Debt in this country, across the board, is a huge issue. Government debt, corporate debt, personal debt are all at crazy levels. Yes, crazy. Interest rates look to be staying low but only as long as others will buy our debt. If that changes and interest rates must move higher because of outside forces, watch out. If the government is forced to print more money to keep the debt game going, watch out. If you think the Jupiter real estate market is crazy right now watch what happens if interest rates go up. Then we will have a new kind of crazy.

For now, the crazy in Jupiter real estate is good if you like home prices rising. If you do, you will like what is coming at us. Home inventory levels in the area are low. Crazy low. The lowest number of homes we have seen in well over 15 years. Crazy, crazy low. Down another 2.3% in September. Down another 6.7% over the past 30 days. Down 15% from year go numbers. Crazy indeed.

Historically, mid- September is when we start seeing Jupiter real estate inventory levels increase. They typically increase for 6 months. Last year between September 15th and March 15th, inventory levels in the Jupiter area climbed by15%. In 2018-2019 they climbed 15.7%. In 2017-2018 they climbed 12.6%. They climb every year over this period as the market gears up for high seasonal sales. It’s a crazy year. What if we don’t see that normal double digit influx of new listings? What if? Things might just be getting a little crazier indeed.

With inventory levels at such historic lows, you would think sales might pull back. Not in this crazy year. So far in September, in the Northern Palm Beaches, pending home sales are up another 2%. Over the past month they are up 4.6%. That’s crazy on its own but when you look what historically happens this time of year it’s even crazier. Last year, over the same period pending home sales were down 8.2%. This year during a pandemic with record low inventory sales are up 4.6%. Last year, with far better inventory, sales were down 8.2%. Yes, my friends we are living in crazy, crazy days. If you are looking to buy a home you know what I am talking about. The number of choices today’s buyer has to choose from are 14% below last year’s numbers. That is really crazy!

Median home prices in the Jupiter real estate market are moving higher. Distressed properties on the market through the real estate community are the lowest we have seen in 15 years. Price are going to move higher over the next month. In last weeks article, Paradise Sharks told you median single family home prices in the Jupiter area would be nearing $600,000 by October 1st. We stand by that. Condo prices have not been as strong but they too are moving higher. Buying a home is getting expensive. Crazy expensive.

If you think this market is going to continue to go straight up, I warn you to be very careful. Pay close attention to the election and what that actually means. Pay attention if tax laws change and the reason for the move to Florida all of a sudden changes. Right now, things are great and getting greater if you look at the value of your home. But it’s crazy and it’s going to get crazier.

After decades of real estate experience, I have never seen anything like it. Pay attention and if your financial situation is such that the value of your home is important to your well being, pay even closer attention. Paradise Sharks is here to answer any of your questions and provide guidance. Contact Paradise Sharks anytime at paradisesharksrealestate@gmail.com or 561.308.0175. Our customer service is legendary. Our local, small business value is untouchable by the big box brokerages. Our focus is you, not us. If you need help with the crazy Jupiter real estate market just let us know.

Fins up……

#jupiterrealestate

Close your eyes and imagine where Jupiter home prices are headed

9/9/2020

Go ahead. Close your eyes and dream. Dream big and think of the median single family home price in the Jupiter area. Dream back to January 1st of 2020, Before this terrible virus had crippled this country, and the world. If you look back then, eight months ago, the median single family home price in the area was $491,000. Home buyers can only wish that Jupiter home prices were that low again.

But they are not and median single family home prices continue to amaze. As of September 1st, that median price in the Northern Palm Beaches hit $573,500. That’s $18,500 higher than they were a month ago. That’s $82,500 higher than they were when we began the year. So far in 2020, that median Jupiter home price is up an astounding 17%.

Close your eyes again and imagine the last time we saw median single family home prices climb that fast in a year. The reality is only 3 times in history have prices moved that much higher in a year. Those were three consecutive years, way back in 2003, 2004 and 2005. Imagine that.

What’ s even more amazing is prices are going to continue to climb. How much higher is anyone’s guess. I have been doing nothing but real estate for longer than I care to imagine and my guess is next month at this time I will be telling you in this article that the median Jupiter home price will be up at least another $20,000. If they are that will ring the annual percentage price gain to over 20%. Close your eyes and imagine that. Go ahead, mark your calendar, and check back here in a month as I think that the median Jupiter home price will be closing in ion $600,000.

Please pay very close attention if the value of your home is important to you. Inventory levels are low, prices are soaring and the economy is in shambles. Close your eyes and image the last time that home prices rose over 20% in one year. The last time that happen was in 2005 and the next 6 years were a disaster for median single family home prices. Back then they dropped almost 38%. From $488,250 in 2005 to $305,000 in 2011. Certainly a different set of circumstances but close your eyes and imagine.

Then open your eyes and understand that Paradise Sharks is here to help you make wise decisions when it comes to real estate in the Northern Palm Beaches. We have been here for you for a long time and are proud of our track record. We take customer service seriously, we take value seriously and we take our clients making informed decisions seriously. If we can ever be of help please feel free to contact us anytime at paradisesharksrealestate@gmail.com or 561.308.0175.

Fins up…..

#jupiterhomeprices

Speculation in Jupiter real estate remains at record levels, but…

9/2/2020

Let’s face it. Saving is out and speculation is in. In stocks and in real estate. With interest rates at record lows there aren’t many places for money to be invested. Right now investments in equities and Jupiter real estate are performing very, very well. Irrational exuberance? Maybe, and as I walk around main street, talk to lots of people, there have to be some bumps in the road ahead. There have to be and we are watching for them. Jupiter real estate prices will not go straight up forever, but they might still run some more. Time will tell but there are potential clouds on the horizon.

As of September 1st, here in the Jupiter area, it’s the very top end of the market where the real action is. While closings of million dollar homes in August were well off July numbers, we have to remember that last month sales of luxury homes blew all old records right off the map. So, even though August sales fell considerably over the previous month, it was was still the best numbers we have ever seen in the 8th month of any year,. Pending homes sales of these luxury homes are up 183% over year ago numbers. Speculation is high and while there may be some risk, those buying million dollar homes could care less right now. It’s the same mindset of investors who could care less that Apple stock is trading at almost 40 times earnings. Everything is going up, so who cares. Life is good. Except on main street.

The overall market is starting to behave the same way. While pending sales were down for the second month in a row, it was another relatively small drop of 2%. On top of that, we are still catching our breath from the monster increases we saw in May and June. Over the past two weeks, pending home sales are up by 3% and compared to year ago numbers they are up a rather amazing 25%. There is a great deal of disparity with some locations doing far better than others. As an example, in the Village of Tequesta pending home sales were up 24% in August, while in Jupiter they were actually down 4%.

Pay close attention in this market as things can change in a hurry. Today, that median price of a single family in the Jupiter area is above $570,000 for the first time ever, and still climbing. Median prices of single family homes, fueled by sales at the top end of the market, were up 3% in August and up 15% over year ago numbers. Condo prices are not as strong and still are far below the records set way back in 2005 and 2006.

Lots of questions, with an economy that’s in a recession, interest rates at all time lows with signs pointing to them staying there, The election of a lifetime is only about 2 months away and the hatred and destruction going on in America’s cities is troublesome at best. I am telling you that after almost 40 years of building and selling in this industry there is a pullback coming in the Jupiter real estate market. When and how much is the question.

If the value of your home is of importance then pay attention. The stock market cannot go up forever, especially with an economy that is in recession. The Jupiter real estate market isn't heading straight up either. Especially with what’s happening, or not happening, on main street. Paradise Sharks is finishing up our 7th year and our passion remains to bring our clients the best customer service in the industry, the best marketing, the best pricing strategies and the best value you will find anywhere. In almost all cases, we see no reason why anyone would have to pay more than a total commission of 4% to sell a home in the Northern Palm Beaches and we are happy to sit down with you anytime to show you why.

If Paradise Sharks can ever be of help in any way with your Jupiter real estate, actually any of your real estate, just let us know at paradisesharksrealestate@gmail.com or 561.308.0175.

Fins up…….

#jupiterrealestate

Want to be a partner in Paradise Sharks? Here's how.....

9/2/2020

One lucky person is going to become an equal partner with me in Paradise Sharks. It might as well be you. It could be you. You are going to need to be special. You are going to need to share my passion.

My passion is to ensure everyone in our market area has access to high quality real estate services. My passion is to ensure our customers get the best customer service in the industry. My passion is that our customers, our friends and neighbors, get the best value in the industry.

It was around 9 years ago when I was a top producer in one of the largest real estate brokerages in Jupiter. I was a member of their agent leadership council. They wanted me to teach classes about how to be a better Realtor. How to succeed in a very difficult business. For a number of reasons I decided I could serve my clients better being a small business. It’s a decision I am very proud of.

The real estate business is much more difficult today than it was back then. Back then, we had over 200 agents in our office. I was in the top ten. Over half the agents would have made more money flipping burgers in a fast food restaurant. It’s even more difficult today.

Today the number of licensed Realtors has doubled. Today the number of homes on the market for sale is a fraction of what it was back then. In fact, inventory is at record lows. There are far more people chasing far fewer sales. It’s a tough business and if you are going to survive you better know what you are doing. You’d better have drive. You better have a passion to succeed and be ready to work hard. You better have a niche.

Paradise Sharks has a niche. We provide a level of service the big box brokerages cannot. We provide value that the big brokerages cannot. They have franchise fees, overhead, broker splits and other costs that we do not. We are proud of that. We tell everyone that we do not sell, we educate and we are very proud of that.

Paradise Sharks writes weekly articles about the local real estate market. We love educating the consumer. We love being small. We love being able to do what the other brokerages cannot. It’s our niche.

So why does this little Paradise Sharks brokerage, who loves being small want an equal partner? Someone who shares our passion to do things better than anyone else at a cost to our clients other brokerages have difficulty competing against.

It’s quite simple. I am 61 years young and want to work in this industry until the day I die. I hope to live a long time. I have tired, after 17 summers, of being in South Florida during the hottest time of the year. I have purchased a home in Abingdon, Virginia and plan on getting my real estate license in that state as well as the states of Tennessee and North Carolina. I love what I do and am going to do it when I am in the mountains.

I am going to be active in the Florida business while I am gone. I am going to continue writing articles and educating the consumer. I am going to still be providing the best customer service to our clients. I am going to be traveling back and forth. I am not going away but I need a partner. Not an employee, but a partner who shares my vision. Who will help define what our combined vision looks like moving forward. I need boots on the ground while I am away.

So what does it take to be that partner? First, you better be special. You better share my drive to educate. My weekly articles, years of them, are available at tompriester.wordpress.com. Read them and you will learn who I am and what I do. My partner is going to need to understand that passionate and bring something to the table to complement that. I am totally open to what that future looks like but you better be good. You need to have skills and drive that will compliment mine.

You don’t need to be active in real estate right now, but it would certainly help. You do need a proven record of passion, customer service and success. You do need a plan of what you bring to the table and a reason why you are the right person, working with me, to keep the passion and the success burning well into the future.

I am in no hurry, but prepared to move quickly with the right person. On February 10th, Paradise Sharks will kick off our 8th year. In ten years I want to be celebrating with you as we are getting ready to kick off our 18th year. During that period, I want to keep pressing for better customer service and better value than anybody else. I want this to be a team effort. You need to be good. Very good. I want you have skills and passion that will make me better. Will make Paradise Sharks better,

I will demand that you have skin in the game. I have worked very hard for 7 years getting this company where it is. 8 years ago I was a top 10 performer in one of the largest real estate brokerages in the Palm Beaches. I was with that firm a long time. My worst revenue year as a Paradise Shark was far better than my best year in that firm. I make a strong six figure income every year, but it is going to be more difficult as time marches on.

I already have plans for driving more business in the year ahead. I will remain relentless in our success and you will need to bring the same to the table. I will demand my new partner has skin in the game that we can discuss. I will demand my new partner has passion. I will demand my new partner understands what customer service is. I will demand my new partner understands what value is and that our passion to provide the best value in the industry is our special sauce. But most of all, I will demand that you love what you do and understand what hard work means. Because if you don’t, we will not succeed and to me that is not an option.

If you are interested, and would like to talk and learn more, reach out to me anytime at paradisesharksrealestate@gmail.com or 561.308.0175.

Fins up and I will truly look forward to hearing from you…..

Jupiter condo market continues to underperform

8/25/2020

When it comes to Jupiter area real estate in 2020, like just about everything in America, it’s a year hard to make sense of. Perhaps more will come into focus after the election. Perhaps not. One thing for sure is, while here in the Northern Palm Beaches single family home sales and prices continue to soar, the condo market seems to be mired in the mud.

While median condo prices are up as of August 15th the gain was only $2,000 and it was the first increase we have seen since April. Even more amazing is, at $247,000, they are still $33,000 below where those median prices were back in 2005. While single family homes have been flying high, the condo market here in Jupiter is frankly, not even on the same page.

The number of single family homes on the market for sale today are at the lowest levels we have seen in well over a decade. Jupiter condo inventory just dipped to the lowest we have seen in less than a year. Median single family home prices continue to hit record after record and are far above the prices we saw back in the 2005/2006 “bubble years.

Condo sales in the area were up for the third straight month, but over the past 30 days were only slightly better than year ago numbers. Over the same period, single family home sales were up well over 30% from year ago numbers. Homes sales over the million dollar threshold were up 147% during July. Condo sales have been left in the dust.

Those at the top end of the market are buying like crazy. Money is cheap. People are moving out of big cities, where hate and destruction has been in the air. A home on the water in Tequesta has become far a superior place to be than a Park Avenue penthouse. People running from taxes and crime in the streets are also escaping the confinement of condo living.

The divide in America is wide and deep. The election is now only 71 days away. Many small businesses throughout the country are in big trouble. The live music industry has been stopped dead. The restaurant industry isn’t far behind. Government debt it at all time highs and climbing. So is the stock market. So is gold. So are single family homes in the Jupiter area. Not the same for condos. Will they catch up or will the rest of the market start showing cracks?

My bet is cracks are heading our way. Median list prices of single family homes in Jupiter and Tequesta are 165% of sales prices. Inventory is at record lows. Money has never been cheaper. But middle America is hurting. Unless a miracle comes along and creates an economic boom that is hard to imagine right now I see cracks. I do believe in miracles so who knows.

If the value of your home is important then pay close attention. If Paradise Sharks can ever be of help just let us know. Our customer service will blow you away. Our value is tough for anyone to touch and our consultations are absolutely free. Contact us anytime at 561.308.0175 or paradisesharksrealestate@gmail.com. We would LOVE to hear from you.

Fins up……

#jupitercondo

It’s a big old goofy world as Jupiter home prices hit $567,000

8/15/2020

The old Chinese virus has hit America hard and it’s still too early to figure out where all this is going to lead. Median single family home prices in the Northern Palm Beaches sit this morning at all time record highs. Where Jupiter home prices go from here is anyones guess. We are 80 days until the election of the lifetime. The hatred and divide in America has never been greater. Nor has our national debt, that this morning sits at 136.58% of our gross domestic product, and is spinning out of control. It indeed is a big old goofy world and there is no telling what happens from here to real estate in South Florida.

One of the most important factors driving this market is inventory, or should we say lack of inventory. The number of homes on the market for buyer’s to select from dropped another 3% over the past month. Right now inventory levels are 10.5% below year ago levels and sit at all time record lows. Let that sink in. Since Jupiter was “discovered” home buyers have never had fewer choices when looking for a home to buy. It truly is a big old goofy world.

Interest rates, while up slightly last week, had fallen steadily for 7 straight weeks to all time record lows. The reality is they could go even lower. Just look across the ocean to Denmark, whose national debt situation isn’t even close to the disaster we have, theirs is only about 34% of GDP. Finland based Nordea is offering a 20 year mortgage that charges no interest. While that sounds like a beautiful thing, the reality is interest rates are so low because the economy and the national debt situation is not something anyone should be comfortable with. If we get to a point where you can literally borrow money for free it should be good for Jupiter home prices. But things could change dramatically in a hurry. Yes sir, it is indeed a big old goofy world.

People are flooding out of the big cities because of this virus. Residential real estate in places like Manhattan and San Francisco are in big trouble. In Manhattan, residential sales dropped 54% during the second quarter with prices down almost 18%. And if you think residential real estate is in trouble, it’s hard to fathom what the shakedown in commercial real estate will ultimately be. For now, for multiple reasons, many buyers are flocking to Florida. Million dollar homes sales during July in the Jupiter area were up 147% compared to last year. Pending home sales at the top end of the market are 71% above last years record numbers. Record breaking million dollar home sales mean median Jupiter home prices should be moving higher. Yes sir, it’s a big old goofy world and it’s getting goofier by the minute.

Distressed sales on the market through the real estate community in the Jupiter area are almost non-existent. Try to find a short sale or bank owned property listed in the MLS. Of the 450 condominiums on the market this morning in the Northern Palm Beaches, only 1 is a distressed sale. That my friends is going to change as there are still almost 27 million unemployed people in America, this pandemic is strangling the life out of many small businesses and their employees and a high percentage of renters in America just aren’t paying rent. The government has not allowed people to be foreclosed upon, or evicted, but that cannot go on forever. Goofy, indeed, and no clear path from here.

Pending home sales had just enjoyed two of their biggest months ever but over the past thirty days fell 12%. Inventory certainly played a role and for now the number of homes under contract in the Jupiter area is still 17.5% ahead of year ago levels. The stock market is booming, the real estate market is booming, and American’s soon will get to choose which path this country heads down and man are they different. Stay turned as this big old goofy world is certainly going to get even goofier in the days, weeks, and months ahead.

Paradise Sharks remains committed to ensuring our clients make informed decisions, whether they are buying, or selling. Our “no middleman” culture means world class customer service at prices much of the competition can only dream about. We believe local, small businesses, are the backbone of America and simply can do things better than the big box brokerages. If we can ever be of help, please feel free to contact us at paradisesharksrealestate@gmail.com or 561.308.0175.

Fins up……

#jupiterhomeprices

Record breaking month for Jupiter home sales

8/6/2020

When it comes to breaking records during July, Jupiter home sales and the rest of the Northern Palm Beaches were nothing short of amazing. Sure, a brand new all time record high price for median single family homes sales was set. At $555,000 as of August 1st, median prices were up over 4% in July and took out the old record originally set back in April.

So a new record price was set, but what truly blew the cover off the record book for Jupiter home sales during July was the number of single family homes that actually closed. Check out these numbers for the Northern Palm Beaches region;

Increase in closings over the previous month was 33%
Increase in closings over the previous year was 25%

Certainly impressive numbers and when everything was added up, July of 2020 had more single family home closings than any other month in history, eclipsing the old record that was set way back in June of 2017.

Interesting times in America. Not only for real estate, but for the soul of our country. The hate and divide are at levels never seen and our national debt keeps spiraling upward and out of control. The Democrats are trying to fight for another $3 trillion dollar “stimulus package” that if enacted immediately adds 11% to our national debt in an instant. One-third of that money is to provide a band-aid gift of a trillion dollars to cities and states that are not able to pay their bills. Those states and municipalities are creating off the wall ways to increase taxes on those working to make a living in an economy where many sectors have been shut down, or at least restricted. The Republicans want to "only" spend another trillion dollars but neither party has an answer where this money will come from. Pay attention America is all I can say.

Right now, the flow of people into Florida, especially from high income earners fleeing those states with a finial crisis, is adding to the demand. During July, homes that sold for over a million dollars broke the old single month record by 142%. Looking at that number one has to wonder why the median sales price has not climbed further.

Part of the answer is inventory, as buyers, especially under the $500,000 mark have few good options. I just had a call discussing feedback on a showing yesterday that the buyer was truly discouraged at what little $500,000 bought in Jupiter these days. Even with interest rates at historic lows, affordability for the working family remains a very big concern when it comes to Jupiter home sales. Inventory levels are at the lowest we have seen for well over a decade. Increased demand, historically low interest rates, record low inventory, million dollar homes sales like we have never seen, yet median prices are not soaring. Pay attention America is all I can say.

Over the past three weeks, the local real estate market has settled down a bit with pending home sales down. Some of it may be a rest from a market that may have come too far, too fast. Some of it may be people wanting to sit back as the election draws near and see how that circus unfolds.

One thing is for sure. If you are even thinking about doing anything real estate, you want to make sure you are teamed with a broker who wants you make informed decisions. We are going through a period in America economically, and socially, that nobody has ever experienced. Be smart, be informed, and if Paradise Sharks can ever be of help in any way please feel free to each out to us anytime at SharkMail or 561.308.0175. Our consultations are complimentary and our can-do attitude is infectious.

Fins up…..

#jupiterhomesales

Northern Palm Beaches million $ home sales shatter all records

8/2/2020

The Jupiter area luxury real estate market has blown away any historic sales records that ever stood. As of today, the number of July homes sales that closed above a million dollars is 116% above year ago numbers and we still will not have a final count for another week or so. That record number will climb even higher.

The inability to write off state income taxes on one’s federal income taxes created the Jupiter million dollar property rush to start once the Tump tax reform was signed into law in December of 2017. Pay very close to the upcoming election, as one of the first things that the Democrats will shoot for is reversing many of the tax reforms put into place under the current administration. If the $10,000 cap on taxes goes away, it could have a serious negative effect on the top end of the Florida real estate market. Stay informed as this market can change direction in a hurry depending on November election results.

The Chinese virus has provided another huge boost to the top end of the local real estate market. People are flooding out of larger cities and have no intention of ever returning. That is a market shift that may never change or reverse. Take a look at the picture in this article. It is a live picture from 2:00 this afternoon from 5th Avenue in New York City. Saturday afternoon, 85 degrees, bright blue skies and it’s a ghost town. This virus has shaken many people to their very souls and being locked in an apartment in Manhattan is the last place they want to be quarantined. A beautiful house on the water in Jupiter, or Tequesta, with a huge chilled swimming pool in the backyard is no doubt a far better place to be.

Speaking of chilled, we are seeing not only the top end of the market, but the entire Northern Palm Beach real estate market, cool dramatically over the past two weeks. Pending million dollar home sales are down 17% over that period. Pending home sales in the overall market are down 8% over the same period. Once again this market is one we have never seen and with the virus, the hatred and the political turmoil things can change quickly so pay attention.

Right now these drops are nothing but a blip on the screen as over the previous 2 months the increases have ben nothing short of historically breathtaking. They were simply off the wall fabulous. But pay attention, as America is going through some historically interesting times. The debt and spending is a huge concern. The hate is a bigger concern. Real estate and gold are both considered the best hedges if the US dollar collapses. The dollar is at two year lows. Both gold and real estate are at all time highs. So is almost everything else. Nobody has ever seen this before. If you care about the value of real estate in the Northern Palm Beaches, you will not find more accurate local information anywhere than the weekly articles Paradise Sharks publishes. If you would like them emailed directly to you just let me know at tom@paradisesharks.com.

So many unique things affecting the market right now. Interest rates are down again for the 6th straight week to another all time historic low. They are giving money away. Inventory levels continue to plummet. Locally, they were down another 6% percent last month. They are down 13% below year ago numbers. In fact, the number of choices buyers have today are the poorest we have seen in well over a decade.

If you are looking to sell, right now is a great time. Paradise Sharks can list almost any property in the Northern Palm Beaches for no more that a total commission of 4%. If your home is in the top end of the market, we probably would not have to charge you anything over 3.5%. We are selling homes fast, we are selling homes for record prices, and we are selling homes in a manner that typically creates very few headaches for our clients.

If Paradise Sharks can be of any help with any of your real estate questions please contact us anytime. We are super easy to reach at tom@paradisesharks,com or 561.308.0175. Decades of experience with no middlemen adds up to a real estate experience like you have never enjoyed.

Fins up…..

#jupiterhomesforsale

Jupiter condo prices pull back for 3rd straight month

7/24/2020

Let’s face it, the real estate market has been flying high in the Northern Palm Beaches. Condo sales are up for the 3rd straight month. Over the last month, they are up over 26%. Compared to year ago numbers, they are higher. But condo prices don't seem to be benefitting from the good times…..

Median condo prices in Jupiter, and the neighboring communities, are down as of July 15th. Down for the 4th straight month. Down to the lowest prices we have seen so far this year. The drops however have not been significant. On April 15th, the median priced condo sat at $252,000. Today it sits at $245,000. Not dramatic but still, median condo prices are down.

Interest rates keep dropping. Sales are up, but condo prices are trending lower. Why? After all, median single family home prices in the area have been performing much better. In fact, today median single family prices sit at record all time highs. Median condo price are still down 12.5% from the record highs last hit way back in 2006. Median single family home prices are 14% higher than 2006 prices.

There has been a huge disconnect in where Jupiter condo prices have been going when compared to their more expensive single family home cousins. Why? The answer is actually pretty straight forward. Taxes.

The local real estate market has been carried for the past few years by properties that sell for over a million dollars. The reason is taxes. Well heeled individuals have been moving to Florida in large numbers. They are running to a state with no income tax, from states with significant income taxes that kept rising. When the Trump administration pushed for a a tax cut, part of that reform was not allowing taxes over $10,000 from being deductible on your federal income taxes. It was now a double tax whammy to live in places like New York and New Jersey. To Florida they have been running. To save money and lots of it.

Wealthy people, relocating to Florida, generally are not buying condos. So far this year, 19.4% of single family homes sales in the Northern Palm Beaches have sold for over a million dollars. In the condo market, that percentage is 4.9%. The percentage of single family home sales over the million dollar threshold that have closed in the Jupiter area during the Trump years is up about 54%. Part of it is taxes, part of it is a strong economy. Demand for higher priced single family homes is surging and it is pulling median prices along for the ride. Condos have not enjoyed the same ride. It’s as simple as that.

There remains a real disconnect from what is happening with the overall economy and the strength we are seeing, not only in the real estate market, but the stock market. There is most likely another stimulus bill coming out of Washington very soon. The Democrats version that the House passed weeks ago, contained a trillion dollar bail out of states and local governments who are in deep financial trouble. So far, the Republicans have said no way, but time will tell.

The election coming our way is going to be critical to Florida real estate. If Joe Biden is elected, he has made it clear he will end most of the tax cuts enacted by President Trump. If he opts to once again allow state taxes to be deducted from federal returns it could cause a flow of well heeled residents headed out of the state. It could put a big damper on Florida real estate. Especially at the top end.

There is so much going on right now. The virus, the economy, the election. It’s enough to make your head spin. For now. the real estate market is booming. Come November, it may be a different story, so pay attention. If you have any concerns, any questions and Paradise Sharks can be of help in any way just let us know. You can call us at 561.308.0175. You can email us at tom@paradisesharks.com. We promise you straight answers, world class customer service, and our decades of experience will help you make informed decisions. The fact we have kicked the middleman out of the real estate transaction means we will save you money. Lot's of money. It's just what we do.

Stay safe and keep those fins up……

#jupitercondoprices

Jupiter real estate