The Jupiter real estate market really starting changing back in 2017 when President Trump created new tax laws. Those laws prohibited the deduction of other taxes in excess of $10,000 from your federal income taxes. At the same time, northern states with high income taxes started having real budget issues and began raising taxes.
It created the perfect storm at the top end of the Jupiter real estate market. People started flooding into the state of Florida and buying expensive homes. In 2017, sales of homes that sold in excess of $1M jumped 11.5% in the Northern Palm Beaches. They broke a record that was set way back in 2005. But things were just getting started.
In 2018, sales of million dollar homes jumped another 15% to another new record high. Last year they jumped another 10.5% and so far this year, sales at the top end of the market are up another 12.3%. Crazy? Hell yes it is. Very crazy. Pending home sales at this minute in the $1M market are up an astounding 117% from last year. Crazy, crazy, crazy.
These sales have pulled up the median single family home price in the Jupiter area. Up from $435,000 in January, 2017 to $575,000 today. That’s a jump of 32% and much of those gains can be attributed to the income tax changes that drove people to the safe tax haven of Florida. This year’s pandemic, and the hate we are seeing on the streets, is fueling that move to non tax states. People have another reason to sell that Manhattan condo and trade it in for a waterfront estate in paradise.
Watch this election and watch it closely. Imagine if the Democrats win and decide to change the tax laws that created the insurgence into Florida. What then? Pay attention, and if doing anything real estate, get informed and make educated decisions. Paradise Sharks takes great pride in ensuring our clients understand what is going on and if we can ever help you with your unique real estate situation, please let us know.
The problem with rising prices in the Jupiter real estate market isn’t usually at the top end. It’s the rest of the market, where the middle class needs to buy homes. Thankfully, the lowest interest rates in history have helped a great deal. Never has money been cheaper, but again pay attention. Debt in this country, across the board, is a huge issue. Government debt, corporate debt, personal debt are all at crazy levels. Yes, crazy. Interest rates look to be staying low but only as long as others will buy our debt. If that changes and interest rates must move higher because of outside forces, watch out. If the government is forced to print more money to keep the debt game going, watch out. If you think the Jupiter real estate market is crazy right now watch what happens if interest rates go up. Then we will have a new kind of crazy.
For now, the crazy in Jupiter real estate is good if you like home prices rising. If you do, you will like what is coming at us. Home inventory levels in the area are low. Crazy low. The lowest number of homes we have seen in well over 15 years. Crazy, crazy low. Down another 2.3% in September. Down another 6.7% over the past 30 days. Down 15% from year go numbers. Crazy indeed.
Historically, mid- September is when we start seeing Jupiter real estate inventory levels increase. They typically increase for 6 months. Last year between September 15th and March 15th, inventory levels in the Jupiter area climbed by15%. In 2018-2019 they climbed 15.7%. In 2017-2018 they climbed 12.6%. They climb every year over this period as the market gears up for high seasonal sales. It’s a crazy year. What if we don’t see that normal double digit influx of new listings? What if? Things might just be getting a little crazier indeed.
With inventory levels at such historic lows, you would think sales might pull back. Not in this crazy year. So far in September, in the Northern Palm Beaches, pending home sales are up another 2%. Over the past month they are up 4.6%. That’s crazy on its own but when you look what historically happens this time of year it’s even crazier. Last year, over the same period pending home sales were down 8.2%. This year during a pandemic with record low inventory sales are up 4.6%. Last year, with far better inventory, sales were down 8.2%. Yes, my friends we are living in crazy, crazy days. If you are looking to buy a home you know what I am talking about. The number of choices today’s buyer has to choose from are 14% below last year’s numbers. That is really crazy!
Median home prices in the Jupiter real estate market are moving higher. Distressed properties on the market through the real estate community are the lowest we have seen in 15 years. Price are going to move higher over the next month. In last weeks article, Paradise Sharks told you median single family home prices in the Jupiter area would be nearing $600,000 by October 1st. We stand by that. Condo prices have not been as strong but they too are moving higher. Buying a home is getting expensive. Crazy expensive.
If you think this market is going to continue to go straight up, I warn you to be very careful. Pay close attention to the election and what that actually means. Pay attention if tax laws change and the reason for the move to Florida all of a sudden changes. Right now, things are great and getting greater if you look at the value of your home. But it’s crazy and it’s going to get crazier.
After decades of real estate experience, I have never seen anything like it. Pay attention and if your financial situation is such that the value of your home is important to your well being, pay even closer attention. Paradise Sharks is here to answer any of your questions and provide guidance. Contact Paradise Sharks anytime at firstname.lastname@example.org or 561.308.0175. Our customer service is legendary. Our local, small business value is untouchable by the big box brokerages. Our focus is you, not us. If you need help with the crazy Jupiter real estate market just let us know.