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 firstname.lastname@example.org