Jupiter home prices stabilize as interest rates hit 20 year high

The real estate market here in the Northern Palm Beaches continues to amaze and one has to wonder just where we go from here.

Over the past two weeks, median home prices have not only stabilized, but moved a bit higher. Condos to $410,000 from $407,000. Single family homes to $835,000 from $822,000.

The average overnight rate on a 30 year fixed mortgage this morning sits at 7.22%, just one day after hitting new 20 year highs at 7.08%. Since January 1st, the 30 year rate has jumped 223%. Crazy numbers and still climbing.

Inventory levels, the number of homes buyers have to select from, jumped another 7.6% last month to the highest levels we ave seen in 22 months. Today’s inventory is 206% higher than last years numbers.

Pending home sales dropped 15% last month to the lowest levels we have seen since January of 2019. The number of homes under contract today in the Jupiter area are down an amazing 39% from year ago numbers.

Buyers of homes above a million dollars continue to guide the market with closings during September setting record highs. That is the sole reason median single family home prices have increased so far this month. September million dollar closings were 39% higher this year, than last. However, pending home sales above this threshold are now down for 4 straight months and have now fallen 7.5 behind last years numbers. It was just a few weeks ago they were 26% higher than year ago numbers.

Tons of inventory, a true lack of sales, coupled with the highest interest rates in 20 years are not signs of a robust real estate market. While Jupiter home prices have fallen a bit, they remain very high as the rest of the world, or at least a whole bunch of the wealthy ones, want a place to call Jupiter home. For those at lower price points there is a true affordability crisis that keeps getting worse. 

Keep your eyes on inflation, interest rates, political turmoil, stock market performance, the war in Ukraine and all the other crazy surrounding us these days.

We will say it until we are blue in the face, but anybody doing anything with real estate in the Northern Palm Beaches, needs to interview brokers and ask questions. Make sure you are making informed decisions as they truly are the best decisions. Many realtors are more interested in their commission than in helping you. Find one who knows what they are doing and are committed to helping you make an informed decision.

Paradise Sharks LOVES to interview. We work for you and only focus on doing what is right for you. Our consultations are absolutely complimentary and can be scheduled at 561.308.0175 or tom@paradisesharks.com. We will not only make sure your decisions are informed ones, we will save you money and make sure you are happy. It’s what we do!

Fins up……

#jupiterhomeprices

Local home prices continue to fall as interest rates soar

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The real estate market around the Jupiter area continues to get more and more interesting. Median single family home prices have slid further to $828,500 down 13% from the recent record high of $950,000. Median condo prices have also fallen to $407,000 which is the lowest we have seen since April.

What makes the pull back even more surprising is homes sales above a million dollars broke every record in the book during September. Closings last month above that threshold were well over 30% higher than last year’s record pace. Pending home sales above a million dollars had been running at record levels but pullbacks over the past week have them at the lowest we have seen since last October. Last week they were 26% higher than last year’s record pace. This morning they are only 2% above year ago numbers.

The million dollar buyer has been steering the local real estate market for about 5 years and that is not about to change. However, there are lots of other influences on the overall real estate market that are starting to take hold, The average overnight rate on a 30 year conforming mortgage have soared this morning to 7.06%. That’s the highest we have seen in over 20 years and it’s a big deal with many predicting even higher rates ahead.

Throw in the macro-economic concerns like the stock market, where prices are down on the Dow Jones by 22% over the past year. Crazy election only 35 days away and more divide in this country than ever in history. Hang on as things are probably only going to get crazier. Last week’s hurricane certainly didn’t do much good for buyer sentiment,

Inventory levels in the overall Northern Palm Beaches market continue to be lofty even though they fell 4% last month. Compared to year ago numbers buyers have 75% more options than they did a year ago. Pending home sales rose last month 1.4% and that was a welcomed surprise but still down 29% from last year and very near modern day lows. Real estate sales, or lack thereof, is a real concern right now.

Summer is over and we are really 3 months way from when we expect strong seasonal buying to kick in. But will it with everything going on. Or will prices continue to fall and interest rates continue to climb? Hold on as its going to get mighty interesting in the days and weeks ahead.

If you are doing anything real estate, or even thinking about it, please interview brokers and get educated. This is not a market for the faint of heart. Paradise Sharks Real Estate has decades of experience and takes great pride in offering the best value in the industry to our clients, friends and neighbors. We decided to kick the middlemen out of the real estate transaction and bring those crazy commissions back to earth. No third party broker taking a slice of the pie, no franchise taking 6% of every dollar. We simply pass this savings back to our clients where we feel they belong.

If Paradise Sharks Real Estate can ever be of help in any way, even to answer a questions you may have, please feel free to contact us anytime. Simple to reach at tom@paradisesharks.com or 561.308.0175 we look forward to hearing from you.

Fins up……

#homeprices

Abacoa 6 month market update

It’s been well over 6 months since we brought you an update on the single-family real estate market in Abacoa so let’s take a quick look at what has happened over the past 180 days.

Active listings currently sit at 15, compared with 4 listed when we last did our last market update. Over the past 12 months there have been 105 single family home sales in the Abacoa community and that is up a couple sales from the 103 sales we had when we looked at the numbers six months ago. Inventory today, based on 12 months sales, sits at 1.71 months which is up dramatically from the 2 weeks when we last provided you an update 6 months ago.

In the overall Jupiter market, single family home inventory based on 12-month sales sit this morning at 2.59 months and six months ago it sat at 3.7 weeks. In the overall Palm Beach County market, today’s inventory is 2.77 months, up dramatically from the 3.2 weeks we enjoyed back in March. Buyers looking for a home in Abacoa have a better situation in today’s market as there is far more for them to choose from. Inventory numbers across the board have risen significantly over the past 6 months.

With Abacoa single family inventory up 231% over the past 6 months, with Jupiter single family home inventory up 300% and county numbers up 375% buyers are in a far better position than they have been for a long, long time when it comes to selection.

Six months ago, the median list price in Abacoa was $1,397,500 and today it is $1,250,000 or a fall of 11%. Today, the median list price per livable square foot is $536 and six months ago it was $549. Median sales price for 2022 sits at $1,100,00 compared to $825,000 last year, or a jump of 33%. The numbers, when looking at sales price per livable square foot, are not quite that strong. So far this year in Abacoa, sales price per square foot has been $477 and that is up 29% compared to the $371 we saw in 2021.

40% of the homes that have sold in Abacoa so far this year sold for less than $1,000,000. Last year, sales under $1,000,000 accounted for 68% of all sales. Of today’s active listings, the least expensive is priced at $667,500 and just six months ago that number was $1,195,00. Like the rest of the Northern Palm Beaches, it’s getting less expensive to buy a house these days.

Sellers are no longer firmly in charge of the single-family home market in Abacoa. Buyers are looking more closely at what they are getting, especially in neighborhoods like Abacoa where entry level prices had skyrocketed. Any pullback is most welcomed, especially with interest rates on a strong run to the upside.

Looking back over 6-month sales, the time it took for homes to sell, what we call days on market, had a median value of 14 days back in March, today that median number is 8 days. So, buyers are being a bit quicker about jumping on homes in Abacoa than they were 6 months ago.

Keep in mind, there are many factors that determine price of an Abacoa home. Over the past year we have seen homes as small as 1,290 livable square feet sell. We have seen homes with over 5,000 square feet sell. Some homes were built over 24 years ago while others haven’t yet celebrated their 2nd birthday. Some in-fill custom homes are brand spanking new. We see a variety of lot sizes and orientation. The quality of finishes and features all play a major role in any homes’ value. Is there a pool? How old is the roof? How old are the air conditioning systems?

Abacoa remains one of the most sought-after communities in the Palm Beaches for its front porches, sidewalks and that family atmosphere with its own downtown, golf course, hotel, spring training, a college, world-renowned research facilities and even its own outdoor Amphitheater where are seeing more and more high caliber concerts. 

Paradise Sharks Real Estate LOVES setting price records in Abacoa and our “Let’s Set a Record Price” marketing packages are available on almost any home in any of the Abacoa neighborhoods for a total maximum commission of 3.5% and that includes a 2.5% co-broke for the buyer’s broker. If a buyer’s broker is not involved, your total commission is lowered to a maximum of 2%.

Complimentary consultations are easy to schedule either at 561.308.0175 or tom@paradisesharks.com.

Fins up…….

#abacoa

Median Jupiter condo prices fall for 1st time in a year

It was bound to happen. After all, median single family home prices have dropped from $850,000 to $750,000 over the summer months. To me, that was mainly an effect of the disappearing millionaire buyer. They don’t hang around Florida for the heat and sweat party that summer brings. They don’t want to be anywhere near here when hurricanes are flying through the air. They aren’t here, million-dollar sales drop and so do median home values.

The median Jupiter condo price, and those throughout the Northern Palm Beaches, dropped to $415,000, down from $420,000 a month ago, down from the record high of $425,000 set back in September, and not really much of a fall at all. Still, it’s the first monthly drop we have seen now for 12 months.

Median, unfurnished, annual, condo rentals are up again, with a median rental price in Jupiter of $2,500, which is up a mind blowing 39% over last year’s numbers.

Buyers have more Jupiter condo inventory than they did a month ago, 4.5% more. They also have interest rates that on a 30-year conforming loan are up another 3.8% this week and an amazing 212% from year ago levels. If they keep climbing, watch out, as it will shake many an apple, from many a tree.

The overall economic picture continues to get more and more worrisome. So many things can affect where our local real estate market goes from here. Inventory will be restricted as those with low long-term rates already locked in are unlikely to be moving anywere. Cost of land, and new construction, continue to climb. If inflation, and interest rates, continue to climb it’s going to get very, very interesting indeed.

Stay informed. Don’t get sold by some script slinging fast talker looking for a commission. Find some one you trust. Like Paradise Sharks Real Estate, who has been doing nothing but building and selling real estate for 40 years. Trust and honesty is our middle name. Making you our client for life, saving you money and being able to call you a friend and part of our family is our only motivation. Complimentary consultations are easy to schedule at tom@paradisesharks.comor 561.308.0175. It would be a true honor to hear from you.

Fins up……

#jupitercondoprices

Jupiter single family home prices fall to 6 month lows.

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I keep seeing articles posted that Jupiter single family home prices are going to fall 50%, or more. I really don’t see where numbers like that are even possible in the Jupiter area, but I guess stranger things have happened. I truly wish they would, but hard to envision anything close. Looking for a “deal”, the summer months are going to be your best friend. Median single family home prices in the Jupiter area just dropped another $25,000 all the way down to $850,000. That’s down about 11% from the record highs of $950,000 we saw back in July and the lowest we have seen median prices now in 6 months.

But, are prices really dropping that steeply on a neighborhood basis? No way. Demand remains strong at many price points. Paradise Sharks Real Estate last week closed a deal where 8 offers were received in the first day. Let’s face it, the rules of Jupiter area real estate were thrown out the window when Covid came to town 31 months ago. Prices started changing even further back when federal tax changes came into play in 2017. The wealthy now want to call Jupiter home. It’s one of the hot spots to be.

But the wealthy play by different rules. They haven’t been hanging around for the hottest summer on record, they are playing in Maine and Cape Cod and other far more favorable summer situations. They pull out and it’s that pull out that is the reason median prices fall this time of year. It’s as simple as that.

Last year the “summer drop” in median prices was only 7%. This year its 11%. Big deal. Prices had further to fall. Interest rates are over twice as high. Overall sales are much slower. Inventory much lower. Big deal.

Closings above the million dollar threshold will have another slow month in September. Just like last year. Median single family home prices may fall even further. Big deal. It’s more of who is buying this time of year that causes the drop. Period.

In the overall Northern Palm Beaches market, inventory has dropped 5% over the past month but still 66% higher than year ago numbers. Still inventory is some of the highest we have seen in 19 months and good news for buyers.

Pending home sales in the overall market were up for the 2nd straight month. Very bullish for this time of year. Last month they were up 2.6%. Compare that to last year when pending sales dropped 8.3% over the same period. But pending home sales are down 23% compared to last year and remain very, very close to record lows.

Interest rates just hit brand new 14 year highs and are a big concern. government spending and inflation. Huge concerns. Lots of crazy stuff happening on the macro-economic front. Big election coming up. Lots and lots of balls in the air and man is it fun being involved in this industry at this historic moment. Literally anything can happen, and just might.

If doing anything real estate, one better be informed. They better be making fully educated decisions and not being sold by agents reading from “scripts” and just doing what they can to earn a commission. Look for someone you trust.

Paradise Sharks Real Estate has been doing nothing but real estate for decades. We take pride in education, not selling. Our prices are the very best out there, as is our customer service. Our consultations are absolutely complimentary and easy to schedule at tom@paradisesharks.comor 561.308.0175. We are here to help. We are here to save you tons of money on commissions. It’s what we do and we would LOVE to hear from you.

Fins up……

#jupitersinglefamilyhomes

Jupiter Farms market update August 21st

It’s been 6 months since we brought you an update on the real estate market out in Jupiter Farms, so let’s take a quick look at what has happened over the past 180 days.

Active listings currently sit at 46, compared with just 15 listed back in February. That is a huge increase of 306% that should have buyers smiling like a Cheshire Cat!

Over the past 12 months, there have been 203 sales in the Jupiter Farms community and that is down significantly from the 249 sales we had when we looked at the numbers six months ago. Inventory today, based on 12 months sales, sits at 2.72 months, that is up 376% from the 3.13 weeks we had back in February. That is a very large jump and inventory levels in Jupiter Farms have not been this high for a long time,

Inventory levels are climbing back to more normal levels in the neighborhood, and the significant climb over the past 6 months in Jupiter Farms shows just how frustrating it is for seller’s in today’s world. In the overall Jupiter market, single family home inventory based on 12 month sales sits this morning at 2.8 months and six months ago it sat at 3.8 weeks. In the overall Palm Beach County market, today’s inventory is 2.7 months, up significantly from 3.6 weeks back in February. Again, with city and county inventory levels up and now in line with Jupiter Farms inventory levels we are seeing a far more balance market than we have seen in a long time.

Back in February, the median list price in Jupiter Farms was $1,250,000 and today it is $982,500, or a fall of 21%. Today, the median list price per livable square foot is $394 and back in February it was $454 so a decline of 13% over the past 6 months. Median sales price so far in 2022 is $735,000. In 2021 we ended up at $591,000 so still a jump of 24%. While we still have a little over 4 months remaining n 2022 its very easy to see the current market turning more in favor of buyers. 

So far this year in Jupiter Farms, sales price per square foot has been $338 and that is also up 15% compared to the $293 we saw in 2021.

Only 7.3% of the homes that have sold in Jupiter Farms so far this year sold for $500,000 or less. Last year, sales under that threshold, accounted for 29% of all sales. Of today’s active listings, the least expensive is priced at $549,000 but there are 19 active listings priced under $925,000. Back in February, there were only three. Like the rest of the Northern Palm Beaches, we are seeing prices start to pull back and favor buyers more than we have seen for quite a while.

Sellers are no longer firmly in charge of the single family home market in Jupiter Farms with inventory up dramatically over the past 6 months. With options for buyers improving, they are still dealing with interest rates that have climbed another 32% since February.

The time it took for homes to sell, what we call days on market, had a median value of 10 days back in 2021. So far in 2022 that median number is 11 days.

Keep in mind, there are many factors that determine the ultimate price of a Jupiter Farms home. Over the past year we have seen homes as small as 1,104 square feet and as large as 5,402 livable square feet sell in Jupiter Farms, We see a variety of lot sizes and orientation with locations “way out west” to “pretty close to town”. Frame construction is not that rare and no doubt far less desirable. The quality of finishes and features all play a major role in any homes’ value. Is there a pool? How old is the roof? How old are the air conditioning systems? Are the septic and water systems in good shape?

Jupiter Farms remains one of the most sought after communities in the Palm Beaches for their large lots, the large majority of homes are not encumbered by an association and homeowners feel a sense of freedom and space they don’t find closer to the beach. 

Paradise Sharks LOVES setting price records in Jupiter Farms and our “Let’s Set a Record Price” marketing packages are available on almost any home in the Jupiter Farms neighborhood for a total maximum commission of 3.5% and that includes a 2.5% co-broke for the buyer’s broker. If a buyer’s broker is not involved, then your total commission is almost always lowered to a maximum of 2%.

Complimentary consultations are easy to schedule either at 561.308.0175 or tom@paradisesharks.com.

Fins up…….

#jupiterfarms