For the first time in 5 months, median condo prices in the Northern Palm Beaches have gone down. After prices ran up over 14% since December, the median price pulled back slightly over the past month to $245,000 from $246,500. 

Certainly nothing to be concerned with as we continue to see condo prices being pumped up as some entry level buyers have been priced out of the single family market where median prices hover around the $500,000 range.

Inventory of condos in the Jupiter area, currently sits at 4.5 months that signals a balanced market slightly favoring sellers. About 6% of condo sellers in the area have realized their prices were too high and have made price reductions over the past week or so. Overpricing a property is one of the biggest mistakes any seller can make.

There remains a shortage of good quality properties that are priced right and the best new offerings are still selling very quickly. We currently have 29 condos ready to close in the area that were snapped up and put under contract within a few days of hitting the market. Buyers need to be poised to take advantage of the right opportunities or others will.

As long as interest rates remain below 5% on a 30 year fixed mortgage and the economy recovery continues real estate in south Florida will continue to do very well.




Fins up…..

​


#jupityercondoprices
​

It really is hard to believe that we are already half way through July, Time is really flying by and that is a good thing if you are in the business of real estate. It’s the time of the year that we see pending home sales fall. As of July 15th, they have fallen for three straight months. Over the past month, the number of homes under contract in the Jupiter area has dropped by 12%. That is a bigger decline than we saw over the same period last year. Of bigger concern is that the total number of homes under contract in the Jupiter area is significantly lower than last year.

One reason we hear that is causing the decline in sales is limited inventory. As of today, inventory levels are down for 5 straight months and the smart money says these declines will continue for another couple months. We have not seen available inventory this low since October. However, the number of homes on the market is almost exactly where we were last year.
​
If inventory levels are the same as a year ago and pending home sales are 12% lower then you cannot entirely blame inventory for the lack of sales. Paradise Sharks is marketing a condo beachside in Jupiter that is priced $20,000 below the median sales price over the past year. Our list price is lower than 87% of all sales in the community over the past 2 years. Median condo prices in the Jupiter area are up about 14% over the past two years. It isn’t moving and it’s not because of inventory.

Median homes prices in the Jupiter area have been moving higher all year but we are starting to see them pull back slightly. Once again, the summer slow down doesn’t help. Interest rates are up about a half a point since January but fell again last week for the 4th straight week. Remember when the Fed raised interest rates again back on June 13th. Since then the average overnight rate of a 30 year conforming loan is down 10 basis points. Buyers should be rejoicing and writing contracts, but they aren’t.

Those who regularly read Paradise Sharks weekly updates know we closely follow sales of properties that sell for over a million dollars. The reason is simple. They are a leading indicator of where the overall real estate market is headed. Last year the number of these sales set a new record. We had been way ahead of last years record pace but both May and June saw lower sales of these luxury homes than in 2017. We still remain 6% above last year’s numbers but we had been much higher. On May 1st, we were 20% above 2017 numbers but over the past couple months we have given back a lot of those gains. Inventory is not an issue here, as properties with list prices over a million dollars inventory levels are well above 12 months.

No clear signal where this market is headed, There is no doubt in many neighborhoods there is a true lack of homes in excellent condition. Keep a close eye on luxury sales. If you listen to the Fed, interest rates will continue to rise. A significant move higher could have a serious effect on real estate prices.
​
One thing is certain. If you are doing anything real estate, you need to be working with a broker who has your best interests as their main focus. Interview at least 3 brokers and ask a lot of questions. Make sure you are making educated decisions. If you are doing real estate anywhere in Palm Beach or Martin County, Paradise Sharks would love the opportunity to earn your trust and your business. We love to interview and you can set yours up today at tom@paradisesharks.com or 561.308.0175.


Fins up…..




#jupiterrealestate

July 1st has dawned. Half of 2018 is already over and what a ride it has been for home prices here in the Northern Palm Beaches. Median single family home prices began the year at $436,000 and six months later they sit at $500,000.On January 1st, the median condo price was $216,000 and today that number has moved up to $245,000. 

Big increases, and no doubt the lack of quality inventory is one of the main reasons prices have been pushed so high. And it’s not going to get better, at least for another month, and probably longer. We never see inventory levels climb in July and no reason to think buyers will have better options a month down the road. As of July 1st, home inventory levels in the Northern Palm Beaches are down for the 4th straight month. 

Inventory certainly plays a significant role in both sales and prices and we already see what has happened to home prices so far this year. Keep in mind, that over that 6 month period interest rates are up about 15% so not only are buyers paying more initially, over the long term, those with a mortgage, are paying more. A lot more. If you borrowed 80% for thirty years, on the purchase of a median priced single family home in January and paid it off over that 360 month period your total payments would equal $587,956. However, if you bought the median priced today, at today’s interest rates your total payments would be $721,947. Same median priced home just with different timing by six months. I won’t even tell you about the additional $12,800 today’s buyer will have to come up with for that 20% down payment and that it would be worth $73,517 if invested at 6% for the length of the loan.

These are the numbers that today’s homebuyer faces here in the Northern Palm Beaches and are part of the reason we are seeing sales start to slip. Not only are pending home sales down again, for the second straight month, the drop over the past 30 days has been significant. Down 20% over the past month. Certainly some of this is seasonal factors but this year the drop over the same period in 2017 was about 54% higher.

Pending home sales are down to the lowest levels we have seen since January and are most likely to continue falling over the next few months. Interest rates and seasonal factors certainly are responsible to some degree but the fact there just isn’t much good for buyers to select from is the biggest concern for the local real estate market. Homeowners who might want to upgrade are remodeling instead of moving, in large numbers. Recent studies by Houzz show that over half of all home owners plan to renovate their homes this year. That is a huge number and yes, inventory concerns affect the market in many ways.

So 2018 is half over and both home prices and interest rates are significantly higher. Home affordability and inventory levels are concerning. A very favorable economy has been a huge boost for real estate and for that boost to continue the economy needs to keep improving. The effective cost of buying a median priced single family home for someone in Jupiter who stays for 30 years just jumped by $200,000. It’s going to take a smoking hot economy to push these numbers higher.
​
Each neighborhood is different. Each home is different. There are no easy answers and anybody doing real estate in today’s market needs to be educated. Interview at least three brokers, seek answers and you will reduce your chances of making expensive mistakes. Paradise Sharks love to be interviewed so feel free to contact us anytime at 561.308.0175 or tom@paradisesharks.com. We won’t bite, I promise.


Fins up……






#homeinventory

​