Let’s face it, living in the Jupiter area we are very lucky indeed. With a median single family home price nearing $400,000 there is still no doubt that those spending a million dollars or more on a property are in what we call the luxury market. If we look at history we see a strong correlation between the number of million dollar home sales and prices. Since the turn of the century when million dollar home sales in Jupiter rise, so do median home prices.
Over the past five years, sales of these luxury homes have soared. Up a rather dramatic 107% and prices have reacted favorably with median single family home prices up in four of those five years. In 2014 more million dollar homes traded hands than any year but 2005 when the bubble popped. The growth in million dollar home sales prior to the bubble bursting was even more dramatic than we have seen recently. They were up 310% between 2000 and 2005. And we know too well what happened in 2005.
Starting a new year we hoped that the growth in million dollar home sales would continue to be strong. January numbers weren’t too bad. Down 12% from the previous year. Enough to make us take notice but not enough to make us jump up and take notice. February’s numbers have us jumping up and taking notice. Not only did we just experience the slowest month for million dollar home sales in Jupiter in 29 months the numbers are noteworthy. We have to go back to October 2012 to find a month when fewer $1M+ homes sold in the Northern Palm Beaches. Over the past 30 days sales were down 30.5%. Sales were down 43% from year ago numbers. Also down 43% from the 12 month moving average. Like we said these were jump up and take notice numbers.
So if the annual performance of million dollar home sales in Jupiter area are tied to annual median prices we are starting to dig ourselves a hole for 2015. For the first two months of 2015 we are a rather significant 38% below 2014 numbers. After 5 straight years of solid growth in million dollar home sales in Jupiter the streak is looking to be in jeopardy. Can we dig out? Always interesting, always fun.
Paradise Sharks Real Estate