As of September 1st, here in the Jupiter area, it’s the very top end of the market where the real action is. While closings of million dollar homes in August were well off July numbers, we have to remember that last month sales of luxury homes blew all old records right off the map. So, even though August sales fell considerably over the previous month, it was was still the best numbers we have ever seen in the 8th month of any year,. Pending homes sales of these luxury homes are up 183% over year ago numbers. Speculation is high and while there may be some risk, those buying million dollar homes could care less right now. It’s the same mindset of investors who could care less that Apple stock is trading at almost 40 times earnings. Everything is going up, so who cares. Life is good. Except on main street.
The overall market is starting to behave the same way. While pending sales were down for the second month in a row, it was another relatively small drop of 2%. On top of that, we are still catching our breath from the monster increases we saw in May and June. Over the past two weeks, pending home sales are up by 3% and compared to year ago numbers they are up a rather amazing 25%. There is a great deal of disparity with some locations doing far better than others. As an example, in the Village of Tequesta pending home sales were up 24% in August, while in Jupiter they were actually down 4%.
Pay close attention in this market as things can change in a hurry. Today, that median price of a single family in the Jupiter area is above $570,000 for the first time ever, and still climbing. Median prices of single family homes, fueled by sales at the top end of the market, were up 3% in August and up 15% over year ago numbers. Condo prices are not as strong and still are far below the records set way back in 2005 and 2006.
Lots of questions, with an economy that’s in a recession, interest rates at all time lows with signs pointing to them staying there, The election of a lifetime is only about 2 months away and the hatred and destruction going on in America’s cities is troublesome at best. I am telling you that after almost 40 years of building and selling in this industry there is a pullback coming in the Jupiter real estate market. When and how much is the question.
If the value of your home is of importance then pay attention. The stock market cannot go up forever, especially with an economy that is in recession. The Jupiter real estate market isn't heading straight up either. Especially with what’s happening, or not happening, on main street. Paradise Sharks is finishing up our 7th year and our passion remains to bring our clients the best customer service in the industry, the best marketing, the best pricing strategies and the best value you will find anywhere. In almost all cases, we see no reason why anyone would have to pay more than a total commission of 4% to sell a home in the Northern Palm Beaches and we are happy to sit down with you anytime to show you why.
If Paradise Sharks can ever be of help in any way with your Jupiter real estate, actually any of your real estate, just let us know at firstname.lastname@example.org or 561.308.0175.