Finally, we start seeing some support and consolidation of Jupiter condo prices. As of October 15th, the median priced condo sale in the Northern Palm Beaches is up to $239,950 from $238,900 one month ago. Certainly not a huge gain but perhaps a threshold at the bottom from which we can build as the “season” fast approaches.

While our winter residents have already started filling out streets, our clubs, our restaurants and our beaches it isn’t until the middle of January that we see any significant uptick in condo contracts being written.

This year, with Jupiter condo prices still 14% below the all time highs set back in 2005/2006, buyers face a number of challenges. First, are interest rates, that today sit 24% higher for a conforming 30 year fixed mortgage than a year ago. At today’s median sales price, a monthly payment for the same mortgage comes with a monthly payment that is 11.5% higher than it would have been a year ago. Higher rates will have a profound impact on prices and what a buyer is willing to, or able to, pay for a home. There is a high percentage of cash closings for Jupiter condos, almost 61% of all purchases so far this year. However, that still leaves almost 40% of the market figuring how to absorb these additional expenses.

Inventory is another concern, and as interest rates continue to rise, homeowners who carry a mortgage will be asking why they would sell a property where they are locked into a loan of 3.75% to move and replace it with a loan that may cost them 5.25%. Many will be forced to stay put because of this reality.

Overall, inventory numbers are slightly higher than last year, but the quality of that inventory is of real concern. Jupiter condo prices are very dependent on condition and most buyers are staying away, if possible, from condo’s that need significant work to bring the property up to 2018 standards. People want to live in Jupiter and feel like they are on vacation and as someone who just went through a 9 month remodel I can tell you it is no picnic to renovate with prices that are steep.

Another issue that should be on the minds of buyers of condos in the Northern Palm Beaches is how the vote on Amendment 2 ends up as it could have a profound impact on property taxes for those who are not planning on becoming Florida residents. Please seek knowledge when doing anything in real estate. Paradise Sharks takes great pride in educating, not selling. If we can answer any questions, or be of help in any way please feel free to contact us at 561.308.0175 or tom@paradisesharks.com

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Fins up……

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#jupitercondoprices

The pages of the calendar keep turning faster than I would like and hard to believe another month is already half over. Here in southeast Florida, we are praying for those in the far other corner of our state, who were hit hard by Hurricane Michael last week. Category 4 storms do not make landfall very often and in an area where frame construction is prevalent and many areas are low lying it really is a recipe for disaster. Even though the area is not as heavily populated, I guarantee you the cost estimates for damage are going to be very, very high. Insurance rates and construction costs will be pushed higher throughout the state and those costs will affect the overall real estate market.

So, besides a major hurricane, what has happened to the real estate market over the first half of October here in the Northern Palm Beaches? Many things pulling the market in different directions, but finally we are starting to see median prices stabilizing after months of falling. Over the past 30 days, the median condo price is up to $240,000 and while that is not a big jump from the $238,900 last month, it is a step in the right direction. Single family home prices are still falling, but if I was a betting man I would wager you will see them stabilize and even climb a bit higher this month in step with condo prices.

So far this month, pending home sales in the Jupiter area have fallen 3.2% but looking at historical numbers this is a fairly strong performance. Inventory levels have finally started to climb and are up 5.5% in October. These numbers are in line with expectations and buyers today have 2.9% more homes to look at than they did a year ago.

Interest rates that have been moving higher to the highest levels we have seen since 2011, have pulled back slightly over the past couple days. I cannot say it often enough, but keep a very close eyes on rates as if they continue to climb it will not be good for real estate.

The Jupiter real estate market continues to look for a stimulus to push it in a more positive direction but a little consolidation after such strong price moves over the past 7 years is probably a good thing. Homes that close with prices above the $1M threshold continue to drive the overall market and continue to set record after record.

Median rental prices for both single family homes and condos in Jupiter are down for the year and the last time that happened was in 2005/2006. Totally different market back then, but rents bear watching and again probably a good thing to see them pull back after a decade of prices rising.
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We were at an Oktoberfest party over the weekend and someone asked me what I was recommending to my clients these days and the best word I can use is caution. Each and every property is different as are the metrics that surround a home. It doesn’t matter if you are buying, or selling, you truly need to sit down with at least three brokers and get complete answers to all your questions. Understand what they are charging you and what you are receiving for your money. Seeing better opportunities in today’s market but still a lot of really bad quality out there so make sure you are teamed with somebody who knows what they are doing. We have been building, or selling, real estate for decades and would love the opportunity to show you how to make an educated decision. Contact Paradise Sharks anytime at 561.308.0175 or tom@paradisesharks.com.


Fins up…..




#jupiterhomeprices

As of October 1st, the median price of a single family home in the Jupiter area has fallen again for the 4th straight month. Median prices during September fell to $473,750 from $477,5000 the month before.

It is hard to say exactly when this four month decline becomes more than a healthy correction of a market that has risen for seven straight years and just set an all time record high of $500,000 on June 1st. With affordability concerns any pull back is welcome news to those out there actively trying to find a home in a particular location and price range.

Interest rates continue to climb and today are at 4.78% for the average overnight rate on a conforming 30 year loan. That is another 10 basis point jump from rates we saw just last week. I cannot tell you how critically important where rates head will be on real estate prices as we move forward. 

Our gross domestic product numbers have jumped above 4% annual growth and all economic signs are pointing to more positive news than we have seen in a long time. The economy keeps getting better and better, with unemployment levels at the lowest levels we have seen in about 50 years. Both metrics are very impressive but there is so much going on in Washington one has to shake their head in dismay at the hatred we are seeing on the news at any time. National debt keeps growing and we need to watch very closely on how the new tax cuts will affect this very important number. 

Single family home sales were down about 26% in September but that fall is somewhat expected this time of the year. Inventory levels increased for the 1st time in 7 months over the past 30 days which is another good sign for buyers who now have a bit more choice that they have had for a long time.

The housing market, here in the Jupiter area, seems to be pausing and waiting for something to get it going. Still limited quality inventory in many locations, but we are seeing listed properties that have many wondering why they have not sold. Seasonal visitors are already arriving and million dollar home sales remain strong. The next few months are going to be fun to watch unfold.

Every home is different and if you are selling, or buying, in today’s market you need to be fully educated about what is going on in your particular neighborhood. Being informed has never been easier but there are still many in the real estate profession who focus on selling and not educating. An informed decision is a better decision, and if Paradise Sharks can ever be of help with any of your real estate problems, you will find us very easy to reach at 561.308.0175 or tom@paradisesharks.com.

Until next week…………


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#jupiterhomeprices

It’s been a very interesting afternoon as we drove across Donald Ross towards the beach to see what all the hubbub was with the beach closed. On our way, we saw a car transport dropping vehicles off either at The Bears Club, Trump National or Frenchman’s Creek. It was a large truck, so they might have had a few to deliver at all three clubs. No doubt, as we hit October, season is fast approaching, and the earliest of our winter visitors are pulling into town.

I hope they don’t go the beach first thing as it is closed and that is why were traveling east to the sand to check things out. The red flags were flying on the Juno Beach lifeguard stands and there was literally nobody on the beach in Jupiter. It really was more than a bit eerie.  Heartbreaking really as an unknown airborne irritant was causing people to be sick over the weekend. I can tell you, that just being near the water my lungs, nose and eyes felt it and in a very short time I had a headache. Just because I stopped at the beach for a couple minutes. We are all in charge of this planet we call home, and if we continue to pay no attention to our future, real estate in the Jupiter area will suffer greatly. Our beaches are beautiful but if you have to wear a mask well I cannot even begin to tell you what that would mean.

It has not been a great year for real estate here in the Northern Palm Beaches. Median prices are down for four straight months. Condo sales in September were the slowest we have seen in 7 months. Single family home sales were even worse. We keep saying prices need to start stabilizing, but they are being pulled at from a multitude of directions. Interest rates have suddenly moved to 7 year highs but thankfully have pulled back a bit over the past couple days.

When you consider that last year, the median price of a single family home in the Northern Palm Beaches, from June 1st to October 1st was up 3.3%. The year before, they were up 5.7%. This year, median single family home prices in the Jupiter area were down 5% over that 4 month stretch. The quality of inventory, the high cost of new construction. It’s all holding back the local real estate market.

On the bright side, inventory levels as of October 1st are up slightly over the past four weeks ending six straight months of decline. The number of homes for buyers to choose from is actually higher than a year ago. But the quality of available homes isn’t great and buyers are more than a bit price conscious and rejecting homes that need a face lift. Not an environment that looks like prices will be moving higher at this point. Don’t even get me started on what is going on in Washington and the great divide that is tearing this county apart at the seams.

Pending home sales are up slightly over the past 30 days and inventory levels are also a bit higher than where we stood a year ago. Things can change but they better get the beaches open, interest rates to stop rising and figure out where some quality homes are going to come from. A little love and respect of the people of the United States would also help. Season is fast approaching and it is going to be another interesting one for Jupiter real estate. If doing anything real estate please do not get sold. Make educated decisions and if buying or selling, the very best way to do that is interview at least 3 brokers and ask a lot of questions. Not only about what their services are going to cost you, but what you are actually getting for that money. Paradise Sharks takes the middleman out of the real estate transaction and we always love the opportunity to sit down and show you how value and quality in real estate actually do go hand in hand. Contact us anytime at 561.308.0175 or tom@paradisesharks.com.


Fins up……




#jupiterrealestate