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Jupiter condo prices soar to new highs

11/22/2020

Up until two months ago, median condo prices in the Northern Palm Beaches had been on a totally different playbook than their single-family cousins. Back then, condo prices were actually higher in January than they were in September. Over that same time period, the median single family home price had jumped about 17%.

But, over the past couple months, Jupiter condo prices, along with those in the neighboring communities have started to move higher. Up last month by 2.4% to tie the modern-day record high, first set in September of 2019. This month, they move higher by another 2% to $260,000 which sets a brand-new modern-day record high and for the first time within $20,000 of the all-time highs last seen 14 years ago during those crazy bubble days.

Much of this recent condo price movement has to do with the fact there is very limited inventory across the board for real estate in the Jupiter area. Couple that with the fact that median single family home prices had hit $600,000, the affordability factor, which even with the lowest interest rates in history is becoming a bigger and bigger deal for many families.

Many people who want to purchase a home are shut out with the prices of single-family home so they purchase condos as that is simply all they can afford. Right now signs are all pointing to higher condo prices coming your way over the next month as they reach to finally take out the old record highs of 2006.

It's going to be a very interesting real estate season ahead here in the Jupiter area so stay tuned. Prices are at record highs and have been moving higher, inventory is at record lows and has been moving lower. We are still two months from what we usually consider the busiest time of the year for real estate sales. Still, a bunch of crazy out there with the virus and the political climate so pay close attention if your home's value is important to you. This season may be your best time to ever sell your Jupiter home.

If Paradise Sharks can help in any way, just let us know. Decades of experience, midwestern customer service and prices that many of our competitors can only dream about. Paradise Sharks has no franchise fees to send off to faraway lands. Paradise Sharks has no broker taking a cut of commissions at the closing table. Our small business culture has kicked the middleman right out of the real estate transaction and we pass these savings on to our clients, friends and neighbors where we feel they belong. Contact us anytime for your complimentary consultation.

561 308-0175 or paradisesharksrealestate@gmail.com

Fins up…..

#jupitercondoprices

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How to save thousands of dollars on Jupiter new construction home

11/21/2020

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If you, or anyone you know, has been looking to buy a home in the Jupiter area then you know the story. Prices are higher than they have ever been, the number of homes for sale are at the lowest levels we have ever seen and the quality of that inventory is suspect, at best.

One avenue many buyers are turning to is new construction, but get ready for a little sticker shock. Land prices, material prices, labor prices are up across the board and buyers of new construction often get stuck at closing for significant costs that traditionally are paid by the seller here in Palm Beach County. New construction is an option, but it’s not an inexpensive one.

As we tell anyone looking for real estate services of any kind, get educated, interview brokers, ask questions and make informed decisions. Taking that little bit of time to be informed is imperative if you are looking to be represented at the very highest levels while still getting the best value.

The money involved in new construction is big, as are the commissions offered by the builders. Consider that, as of today, the median price of all single-family homes sold to date this year in the Northern Palm Beaches is $565,000. If you just look at those homes built in 2020 that number soars to over a million dollars. Real estate brokers make more on news construction as the numbers are much higher.

Paradise Sharks has always looked at the real estate transaction a little different than most brokers. We look at the time we need to spend on a particular transaction and what we need to charge that particular client and provide them the service they deserve. Historically, with new home construction, we typically spend far less time on a transaction as there are far fewer details to deal with. Instead of showing a buyer homes in a larger geographic area, many times you visit a single neighborhood and look at models and lot locations. Negotiating prices with many larger developers is not something that is typically done as they work with list prices and reducing them for a single buyer sets a bad precedent. Most developers insist on writing their own contracts, many provide great financial benefits for dealing with their lender, there typically is not an inspection to deal with, there are typically fewer issues, far less behind the scenes work and minimal drama to deal with. It’s far easier on the broker representing the buyer on these sales in the majority of cases.

It makes sense that if it’s easier, if it takes less time for the broker there should be a benefit to the buyer. There may be to buyers who ask questions and interview brokers. Many new construction communities still offer 3% co-broke commissions that have been virtually disappearing in the resale market in the Jupiter area. While we are seeing that shift as well, there usually still is more money on the table for real estate brokers in the new home communities.

Paradise Sharks believes in giving back. We don’t have to send large franchise fees off to faraway lands, we don’t have a broker at the closing table taking a cut of our commissions, we are different and we love to give back, so we do. In new construction communities we typically give 50% of our commission back to to our clients at closing as our little way of saying thank you.

But, as we also say, there are two sides to value and you don’t want to just look at the money as you really do not want to overlook service and market knowledge. Especially in new construction. We have worked in new home communities and know the ropes. Buyers need to be represented. They need to know why that western facing lot will affect their future value, they need to understand the builder’s contract, the new construction process and why that agent working in the sales office is not working for them.

So, to save lots of money on Jupiter new construction, or new construction anywhere in the Northern Palm Beaches, just pick up the phone, interview brokers and find out what they are going to do for you. If you ask Paradise Sharks, you’ll hear how we will take you to the showroom, or showrooms, that may fit your needs, we will make sure you are aware of things the builder's representative may not tell you and most likely you will not only make an informed decision but you’ll also get a great credit at closing. We have given client’s credits at closing in excess of $20,000 on new construction and we’d love to save you money as well. If we can ever be of assistance just let us know at;

paradisesharksrealestate@gmail.com or 561.308.0175.

Fins up…….

#jupiternewconstruction

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It’s time to “bee” a little careful with Jupiter real estate

11/16/2020

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The well-heeled are still coming to Jupiter. They are buying homes. Lots of homes. Expensive homes. At the top end of the Jupiter real estate market, things are really buzzing but for the rest of y’all it's time to “bee” a little careful as you don’t want to get stung.

Halfway through the month on November. A country in divide. All signs, or at least most of them, point to Joe Biden moving into the White House, raising taxes significantly, bailing out bankrupt northern states and cities with printed money and doing lots of things many would have never expected in America. How that impacts Jupiter real estate is yet to be seen, but “bee” careful. You see, many of the people who have been snapping up million-dollar homes in the Northern Palm Beaches won’t lose much sleep if home values start to drop. If your home plays a significant role in your financial stability, “bee” careful.

Prices are rising, inventory is shrinking and the season is coming. Interest rates are at all-time lows and probably heading lower. Demand is still exceptionally high. The table is set for even higher median home prices coming our way in the Jupiter real estate market.

Home inventory in the Northern Palm Beaches is down again so far in November. Down 2% this month, down 3.3% over the past 30 days. But it's falling during a period we usually, as in almost always, see inventory increasing. For the second straight month, during months we always see inventory increase, it has fallen. There just aren’t many homes out there, especially at the lower price points. Finding one that is in excellent condition and is priced well is almost impossible. If you find it, you better act lighting fast and put a very solid offer in front of the seller as they will have multiple offers on the table.

If you are considering selling and have a home in the Northern Palm Beaches in great condition you are in the driver's seat. You should be paying super low commissions, getting super fantastic customer service and your home should be selling in the blink of an eye. If you are interviewing brokers, and you certainly should be, Paradise Sharks would be honored to speak with you. Contact us anytime at paradisesharksrealestate@gmail.com or 561.308.0175 and we will make sure that your decision is an informed one.

The number of homes buyers have to choose from is at all-time record lows. Inventory is down 32% since April. It’s down 28% since last year at this time. We are truly in uncharted territory and it's impossible to say right now where things go over the next 6 to 7 months. “Bee” careful.

Pending home sales are down for the first time in 3 months. Down 2.3% so far in November. Down 4.3% over the past 30 days. Last year, over the same period sales were up. However, pending home sales compared to year ago numbers are 43% higher. Dramatic and with no inventory for buyers to choose from something has to give.

Condo prices that had been badly lagging the single-family home market are moving higher. For 4 straight months they are up and for the first time since 2006 within $20,000 of the old record high. Median single family home prices have hit $600,000 in the Jupiter real estate market and as long as million-dollar home sales remain strong they will certainly head even higher.

The question is what happens to the economy, how will new tax laws affect the demand at the top end of the Jupiter real estate market? Pending home sales in the million dollar plus market are down 10% since the election. If that continues, well, “bee” careful. Right now, everything is looking beautiful and honey is dripping from every hive. But things can change.

Pay attention, make educated decisions, and keep a very close eye on the million dollar plus market. Jupiter real estate is looking mighty fine right now, season is on the way. “Bee” informed. Pay attention to the numbers in your neighborhood. Paradise Sharks watches the Jupiter real estate market by the hour and if we can ever answer a question, or “bee” of help in any way, just give us a “buzz” at 561.308.0175.

Fins up…..

#jupiterrealestate

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I just sold my house and only paid a 1.5% real estate commission

11/11/2020

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That’s what one Paradise Sharks client is saying today after we closed on their property Monday. Not only did they pay a total real estate commission of just 1.5%, they actually received more at closing than if they sold the property for full price. The fact that we sold the property for them in just 3 days was just icing on the cake.

How on earth did we do it? It’s actually quite simple as they were working with a real estate broker focused on the client’s goals and not their commission. You see, they had agreed to pay a 4% total commission that is pretty much standard for Paradise Sharks clients in the Northern Palm Beaches. We had offered a 2.5% commission as a co-broke on the MLS for anyone representing a buyer.

However, our very first call was from a buyer who was not represented by a broker. We listened to their needs and saw an opportunity to make everyone a winner. We typically do not like to represent both parties on a transaction, as we do not feel we can properly represent both parties in most cases. But in some cases, it makes a lot of sense and this was one of them.

Even though this is a red hot market. Even though we were priced remarkably well and had a long term tenant in place who wanted to stay. Even though this was an opportunity that would easily pay over a 5% cash on cash return to an investor we had not had another call about the property. We explained to both the buyer and the seller how we could put together a deal before another potential buyer submitted an offer and how we could make this an easy win/win for all parties.

We suggested in this market our seller client should get full list price this early in this game. We knew that representing both parties on what was shaping up a a simple straight transaction would not take us any more time and no additional commission was needed. The buyer was an investor and we would be happy to credit the seller the 2.5% co-broke commission which we did. We simply took 2.5% off the sales price making it an even better deal, and return for the buyer/investor.

We tread very lightly in such circumstances and explained to both parties the window of opportunity was limited as if we had another offer come in before we had a fully executed contract I had an ethical issue. You see another buyer would be at a disadvantage because with a broker representing them they would be at a 2.5% disadvantage and I could not offer the discount. Luckily everyone agreed to a contract prior to anybody else presenting an offer.

Our seller client was happy. Our buyer client was happy. The tenant was happy. Paradise Sharks was happy. The key to proper real estate representation is trust. It’s working with a broker focused on their clients goals and not how big their commission check would be. In the end we put together a transaction that paid us handsomely for a transaction that took very little effort. Our seller client walked away from closing with a check larger than they would have if they sold for full price. Our buyer client ended up with a great property and a better cash on cash return. The tenant has a new landlord with little disruption.

It’s the way real estate should work and if Paradise Sharks can ever be of service, please let us know. Our consultations our complimentary. Our goal is to provide you world class service and save you money at the same time. Contact us anytime at 561.308.0175 or paradisesharksrealestate@gmail.com. We won’t bite but we will make you smile.

Fins up…….

#realestatecommission

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Median Jupiter home prices hit $600,000. Is it time to sell?

11/7/2020

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A new record median single family home price is firmly in place in the Northern Palm Beaches. This morning it sits at $600,000 and so far this year in the Jupiter area that median price is up an amazing price 22%. Only twice before in history have median single family home prices in the area been up over 20%. Those years were 2004 and 2005. After those record years, Jupiter home prices fell 5 out of the next 6 years and the drop over that period was significant, Very significant.

In 2005 the median price was $488,250. In 2011 it was $305,000. Are we heading for a similar fate right now?

First, let’s make it clear the things that were driving the market in 2005 are totally different than what is driving the market right now. Prices may move higher as they did in 2005, but there is trouble ahead for many home owners.

Let's face it, and we keep talking about it, we are blessed to live in beautiful area that draws many wealthy people to our shores. They are running from bankrupt states and high taxes. It’s what has been driving prices higher at a record pace. The median price isn’t something they are concerned with. They want what they want and the taxes they are saving easily pay for the lifestyle they are buying into. If they lose a million bucks on a house, for many it isn’t the end of the world.

I walk a lot and yesterday I walked by a lot in Tequesta, a home on the main drag that recently sold for $875,000 is gone. It’s not a great lot. It certainly isn’t on the Loxahatchee River where people are spending millions on homes and tearing them down. The day before I was walking in Jupiter and a house that stood on a golf course lot that was on sale for $1.4 million the last time I walked by is no longer there. Somebody tore it down. Its back yard faces the direct western sun. Those with real money are not concerned with median prices.

The rest of the world is, and the reality is most of the residents of the Northern Palm Beaches couldn’t afford a home even in they could find one. Even though interest rates, while up this week, are sitting near the lowest we have ever seen or experienced. The median single-family home is priced beyond the means of a large percentage of those who live here.

The future depends on a lot of things, but with inventory at record lows and continuing to fall, and people continuing to relocate to Florida to escape taxes, right now signs point to a solid market. Right at this minute, sales of million-dollar homes were up 260% in October over last year’s numbers. Last year blew away all records for million-dollar sales. They blew away the old record by 10%. This year, in 7 of the 10 months, million-dollar sales blew away last year’s records. The three months they didn’t were directly related to when the Chinese Virus reared its ugly head. At this moment, pending million-dollar home sales are up 298% from year ago numbers.

Three days after the election was supposed to be over, it isn’t. It may be over today, but it certainly seems that the courts will be getting involved. The outcome and what it means for the economy will have a lot to do with where things go from here.

Middle America is in in trouble. Small business is in trouble. Look at the stores, the empty storefronts.The debt. The next multi-trillion dollar stimulus will be pushed through at some point. If you think the stock market will climb forever you would be wrong. If you think home prices will climb forever you would be wrong. But they certainly could climb higher before the next significant pullback happens. Jupiter home prices will change every day. They always have and always will.

Stay informed and watch the numbers if the value of your home is an important part of your financial future. Things can change quickly. Just like they did in 2006. Today even though million dollar pending home sales are up 298% from year ago numbers, they are actually down almost 10% over the past month. Things change so pay attention.

If you would like an analysis of your home's value and what you should be watching for, find a qualified real estate broker to educate you. Not someone to sell you, but someone to help you and to give you an honest evaluation. Paradise Sharks does an overall analysis of the Northern Palm Beaches each week in this column. If you would like an evaluation of your situation, we would be happy to help you and it won’t cost you a penny. Each house is different, each street is different, each neighborhood is different. During October pending home sales in Hobe Sound were down 13%. In Juno Beach they were upon 50%. There are clues you just have to read them.

If Paradise Sharks can ever be of help all you really have to do is ask. We don’t sell, we educate. Contact us at paradisesharksrealestate@gmail.com or at 561.308.0175. We would be honored to earn your trust and your business. We promise the highest level of customer service and value that our competition can only dream about.

Fins up…….

#jupiterhomeprices

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Jupiter real estate; prices up, inventory down, election coming

11/2/2020

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Let’s face it, when it comes to a bullish real estate market, never in our history has it been better in the Northern Palm Beaches. Ever. Just look at median single family home prices. In the Jupiter area, they are up now for 9 straight years. This year, in the middle of our generation's worst pandemic, they are up double digits for the first time since 2005.

There are a lot of reasons Jupiter real estate prices have been moving higher. Take the Chinese virus out of the equation and the economy has been strong. Interest rates are the lowest they have been in the history of the world. Jupiter becoming a "destination" has certainly played a role. But the most important factor is the number of people moving into the State of Florida.

Right now, about 1,000 people a day are moving into the state. Sure, the beaches and weather are attracting many, but they are finding out the price of living in paradise is not inexpensive. Jupiter real estate is crazy expensive and those numbers are climbing. For the year, the median single family home price in Jupiter sits at $574,250. Over the past three months that number has jumped to $605,000.

But it’s the people with money, seeking shelter from high-tax states that have been flowing into Florida and driving the Jupiter real estate market higher and high now for three years. Ever since President Trumps tax changes that were passed towards the end of 2017. This year's pandemic and the #blacklivesmatter terror that has been unleashed on cities throughout this country have driven more and more people, in record numbers, to the Sunshine State.

It’s the top end of the market that has created the demand for million-dollar homes never seen before. October sales in the Northern Palm Beaches, of homes that closed for over a million dollars were up 230% over last year and last year was a record-breaking year. Pending home sales of properties listed above a million dollars are up right now 307% over ago numbers. These are numbers that truly are mind blowing.

In just two days, America votes and as anyone know this country has never been more divided. If Joe Biden wins his plan is clear and it includes immediately getting rid of the Trump tax cuts, raising taxes significantly and bailing out Northern cities and states that are bankrupt with printed money our Government has no idea where it is coming from. Many of the reasons that have been driving the Jupiter real estate market higher and making the economy strong could disappear in the blink of an eye.

But for right now the Jupiter real estate has never been better. As we told you last month, many have put things on hold waiting to see how this election ends up. Pending home sales were down on October, but are still so far ahead of year ago numbers it is crazy. This morning they are 47% ahead of 2019 numbers. Go back to 2018 and they are up by 69%.

The immediate problem is not only prices climbing where many who live here simply cannot afford Jupiter real estate, but there is nothing to buy. Inventory levels were down again in October for the 7th straight month. It wasn’t a huge decline but historically inventory never drops in October, Not until 2020. Last year in October inventory rose 5.8%. In 2018 it jumped 9%. This year buyers literally have fewer choices than any time in history.

So much of what is coming our way will be determined on Tuesday. Pay close attention to these changes that will happen in the Jupiter real estate market overnight, especially if Joe Biden wins and even more especially if the Democrats take over the Senate as well. Stay informed and make sure if you want the most comprehensive information available anywhere on the Jupiter real estate scene that you stay tuned to Paradise Sharks weekly market updates that we have been bringing you for years. If you would like these updates e-mailed directly to you, just send us a note to paradisesharksrealestate@gmail.com and it will be done.

Decades of experience and our boutique culture delivers quality customer service and value that most of our competition can only dream about. Unencumbered by franchise fees or a broker taking a cut of our commissions, we simply pass those savings back to our clients where we feel they below. There are not many homes that we cannot provide our full service, “let’s break a record price” marketing for a total commission of 4%, or less. If the client wants to explore a 2% co-broke that many brokers have been doing, we can list most homes for a maximum commission of 3.5%. Most of our buyer clients get substantial credits at closing as our little way of saying thank you.

No matter what happens Tuesday, no matter how bad, or how good the economy gets, people will be buying and selling Florida real estate. Paradise Sharks is busy and looking for an equal partner here in our Florida office. If you love to provide quality customer service and value and want to help us bring fantastic real estate service to our clients, friends and neighbors feel free to give me a call at 561.308.0175.

Enjoy the day and keep a big smile on your face……

#jupiterrealestate

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