Unlike the single family market, the median condo price in the Northern Palm Beaches has not recovered from the bubble that burst way back in 2006. Back in 2005, the median single family hit a record of $488,250, that held for 13 years until it was exceeded in May of last year. Today, the median single family home price in the Jupiter area sits at $520,000 which is 6.5% higher than the old “bubble record”.

The median condo price, as recently as February, was still 18% behind the record highs last seen in 2006. Today, that median condo price sits at $253,000. Since February, prices are up for 4 straight months and the percentage gain is impressive at 10%. Now, we are only 9.5% behind the old record and all signs appear to point towards that gap being closed further in the weeks ahead.

Why are condo prices rising so much in relationship to single family prices? Affordability is the main reason. Many buyers simply cannot afford to qualify for a single family home purchase and are forced to look at condos where median prices are less than half of a single family home. New residents continue to flock to the area and if they want to purchase, condos remain a far less expensive alternative.

It’s still summer. Condo sales over the past 30 days are 34% lower than last year’s numbers. It is the second straight month the condo market has softened since last year. Even with far slower sales, prices are moving higher. More buyers qualify for loans now that interest rates are solidly below 4% on a 30 year fixed mortgage. Condo prices are heading higher from here. Bank on it.

Be very careful if shopping for a home this summer. Have a complete understanding of all the critical numbers with any purchase. Understand how condition and the financial condition of the condominium association affect market value. Don’t get sold by a broker whose main goal is to “close” you and put a commission in their pocket. Find a broker who wants to educate, and make sure you are making a sound decision, based on the property you are considering and your own unique situation. If you can find a broker who gives you a significant credit at closing like Paradise Sharks has started to do with every client. If we can ever help educate you please let us know at tom@paradisesharks.com or 561.308.0175. Don’t settle for mediocre. You can always pay more, and get less, but that just wouldn’t make sense.


Fins up……….


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#jupitercondoprices

If you are one of those out looking for a house in the Northern Palm Beaches this summer, brace yourself. Not only are prices rocketing higher, but the options you have to choose from are not great in many neighborhoods. Entry level buyers will have a difficult time finding anything that meets their needs and budget. When the best new listings hit the market, they will be snapped up in multiple offer situations so you need a broker who knows how to position you for success. At the top end of the market, buyers have more options, but competition for the best new opportunities is still extremely strong. 

Pending home sales in the Jupiter area, as or June 15th, are down for the 2nd straight month but have moved ahead of year ago numbers. That’s the first time we have seen that in 8 months. Still, seasonal factors are strongly in place and odds are high that pending home sales will continue to fall for the last 6 1/2 months of the year. Inventory levels also continue to fall making it even more difficult for those out buying to find the perfect home.

Overpriced homes, and those in less that optimal condition, continue to languish as buyers are more educated than ever before. Paradise Sharks recently listed a home at $450,000 and after 2 weeks had almost no activity. A price adjustment to $435,000 heated things up quickly with 7 showings and 3 offers in just two days. The house sold for full price after the reduction, so you can see what happens when a price dips down to a price the market will react to. What appeared to be a fairly insignificant cut of $15,000 was the difference between a stale listing and a multiple offer situation.

If you are shopping, you will encounter a totally different experience depending on where you are looking and the price range you are targeting. If you are looking for value, be very careful as prices are rising. Median condo prices in the Jupiter area are up firmly above $250,000 for the 1st time in 13 years. Single family home prices are up 9.5%, so far this year, to a brand new all time record high of $520,000. 

Rising prices have pushed the number of homes selling above the million dollar mark to record after record. So far in 2019, sales of these luxury homes are up 17% from last year’s record pace. But in all price ranges, the best conditioned listings are drawing immediate attention as buyers are more willing to pay higher prices for something they want. Interest rates have continued to fall with fixed 30 year conforming rates firmly below 4% for the first time in a year and a half. That helps to keep monthly principal and interest payments more affordable for those stretching on the purchase price.
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It’s critical to team with a real estate broker who understands the market. Who understands construction. Who understands how to negotiate. Who knows how to market. Paradise Sharks has decades of experience and our small business culture saves our clients thousands of dollars. No middlemen means the lowest commissions in the business, it means significant credits at the closing table. Paradise Sharks takes immense pride in saving our clients lots of money, whether they are buying or selling, and we’ll help them make educated decisions. If you want to learn more, we are very easy to reach at tom@paradisesharks.com or 561.308.0175.


Fins up…….


#jupiterrealestate

The month of May turned out to be a fabulous month for single family home sales in the Northern Palm Beaches. Closings hit the highest levels we have seen in 23 months and the median sales price hit an all time record high of $515,000. And guess what? June is going to be even better.

You see, June is almost always the month that we see more single family home closings than any other month during the year. We have to go way back to 2011 to find a year where that was not the case. Look for higher sales volume and higher prices when we next report on single family homes a month from now.

Sales volume in May was up 11.7% from April, and even more impressive, they were 9.9% higher than year ago figures. In a real estate market that has been struggling a bit, it was the first time in 7 months that year over year numbers actually improved.

With an influx of people moving to the Northern Palm Beaches, and economic news continuing to be upbeat, local real estate continues to get more expensive. Million dollar sales are setting record after record and the lack of quality inventory has buyers reaching a bit, driving prices higher.

Pending home sales and inventory will both continue to languish over the next 6 months so keep a very close eye on economic news in the weeks ahead. The political climate is as divisive as ever, and anything can happen, but for now all looks great on the real estate front.
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Paradise Sharks loves saving our clients money through lower commissions and significant closing credits to our clients. We have decades of experience and a small business culture that has kicked the middleman right out of the real estate transaction and that saves our clients thousands of dollars. No franchise fees, no broker splits, no transaction fees, just honest, hard working, money saving strategies designed to keep more money in your pocket. Always interview when doing anything real estate and ask a lot of questions. We love answering them, so if you ever need real estate advice, please feel free to contact Paradise Sharks anytime at tom@paradisesharks.com or 561.308.0175.


Fins up……




#jupiterhomeprices

The quality of life in the Northern Palm Beaches is about as good as it gets in South Florida. The cost of that lifestyle is not inexpensive, but the increase in the number of Jupiter area home sales above the million dollar mark is almost mind boggling. During the month of May, the number of these sales soared more than 70% above last year’s figures. And 2018 was a record year with an emphasis on “was”.

Then, along comes 2019, and so far in 4 of the year’s first 5 months, last year’s record numbers have been left behind in a pile of dust. So what’s behind such huge increases?

Sure, the economy is humming, the stock market performing well, more favorable lending terms on jumbo mortgages and all that stuff helps, but it’s taxes that are driving the top end of local real estate market. You see, the number of people moving to Florida to escape high state tax locations is surging. 

It’s not just the state tax, but more important is with the latest tax changes out of Washington they also lose the ability to write that amount off their federal tax bill. You see, it’s one thing to have a deductible expense and a totally different thing to have a nondeductible expense. The loss of this federal tax deduction has many wealthy families asking why not Florida. Many are answering the call and I am sure with the ink dry on the checks sent to the IRS in April it’s just adding fuel to the flood of wealthy people relocating and buying expensive homes in the Jupiter area.

And guess what? It’s a trend that will likely consider as the new tax laws also hurts existing homeowners with high property tax bills in the Jupiter area. Imagine that beautiful home overlooking the Loxahatchee River and a property tax bill of say, $60,000. It was a sum that once was deductible and no longer is. Once 2019 tax notices are sent out in August watch for another round of current residents that want to say adios to another year of non deductible property tax bills.

The top end of the market is red hot and this strength is really carrying the overall market. All signs point towards continued strength but keep your eyes and ears open. Get educated, not sold as mistakes at these prices can be very expensive.
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If you are selling in today’s market, you will want to understand the dynamics of the market for your property. Almost 15% of sales that closed above the $1M mark in May went under contract in less than a week. You certainly have options when selecting a broker, and a good question to ask when interviewing is what commission break you would receive if your home sells in 7 days or less. Paradise Sharks has full service listing packages as low as 4% and we also provide our buyer clients significant credits at closing as our little way of saying thanks. If we can ever be of help in any way it’s super easy to set up your complimentary consultation at tom@paradisesharks.com or 561.308.0175.


Fins up…….




#jupiterwaterfrontproperties

Real estate here in the Northern Palm Beaches continues to be a tale of two markets. The ultra luxury market, where homes sell in excess of a million dollars, has been amazingly robust and stronger than it has ever been. The rest of the market, where affordability and qualifying for loans, is an important part of the tale, is just coasting along being carried by those luxury sales.

During May, pending home sales in the Jupiter area fell for the 5th straight month. Over the last half of the month, pending homes sales pulled back 4.4%, which was in line with expectations. More telling is the fact that as of June 1st, pending homes sales are lower than we have seen in over 6 years on this date. Be thankful for the luxury market that continues to carry the overall market on it’s shoulders.

Add to that the reality pending home sales will not really perk up with any strength until next year. We will watch the numbers trend lower for 7 long months before the normal seasonal buying starts in earnest around the middle of January, 2020. Thankfully, the million dollar market dances to it’s own beat as we need that market support over the next few months. 

The fact is, while pending home sales in the overall market are down, sales at the top end of the market continue to boom. Last year, we saw more homes sell above $1M than in 2017 which took out a record that was 12 years old. This year’s numbers are up 13% from last year’s record pace and that’s big news.

The number of homes in the Jupiter market for sale, fell for the 3rd straight month but are still the highest we have seen on this date since 2016. Inventory numbers will continue to dwindle through the summer. 

Interest rates are the lowest we have seen in 17 months and that is great news for those looking to purchase a home, as it helps offset median price increases that have been driven higher. Median condo prices are up for 6 months, while median single family prices are up for 8 months and just set a brand new, all time record high, of $515,000.

Not a market you want to make uneducated decisions in, as mistakes can be expensive. The condition of many listings is suspect and buyers need to fully understand how this effects prices and desirability. Don’t get sold, seek information and a broker who has the experience to properly guide you. Paradise Sharks has been doing nothing but real estate for over 3 decades and our boutique culture is designed to not only provide you world class service, but also amazing value. Because we do not pay franchise fees, or have a broker taking a cut of our commissions at the closing table, we can do more for less. It’s that simple and it’s a winning formula if you want to make informed decisions and save tons of money. If we can ever be of help, please feel free to contact us at tom@paradisesharks.com or 561.308.0175. We don’t sell, we educate and will save you money. It’s just what we do.


Fins up…….


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#jupiterhomesales