Jupiter condo prices flatline

Median condo prices in the Jupiter area have been holding steady in a very tight range for 5 months. This morning, that median sales price sits at $223,000. Back on May 15th the median price was $223,500. Kind of a flat line, but that is a good thing. It’s what we come to expect during the summer months and this market looks very solid heading into the season.

Flatline

Sales volume has been slow. Looking at total condo sales in the Northern Palm Beaches, they have been down about 15% over the past 4 months when compared to both 2015 and 2016. To top it off, pending home sales are down for 6 straight months and we are heading into a 4 month stretch when condo sales will remain slow.

The fact that prices are holding steady is a testament to a bull market that appears to be catching it’s breath. Try finding new construction condos in the area anywhere near the median price…well, it just isn’t going to happen. Toll Brothers has some new things at Jupiter Country Club around $500,000 and that is about the best you are going to do in the Jupiter area with new condo construction. Yes, affordability remains a problem.

Inventory is limited, but starting to ascend a bit. Will sellers provide enough quality listings to keep median prices moving higher? The snowbirds are already pulling into town but no real buying typically kicks in until we get a couple weeks past the new year. Interest rates are still low, the stock market seems to hit a new record high each day and it is going to be another awesome season ahead.

Whether you are looking at new construction, or resales, Paradise Sharks always seeks to add value back into real estate. To learn more about how we can help you please feel free to contact us anytime at tom@paradisesharks.com or 561.308.0175.

 

Fins up…..

 

 

#jupitercondoprices

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More options for Jupiter homebuyers

Yes it is true. Inventory levels in the Jupiter area have started to rise. Not a huge increase, but a step in the right direction for a market that truly has been void of many good options for most homebuyers. Nothing can be more frustrating for those who are searching for that ideal home than nothing suitable in their price range to buy.

Blog PHOTO BIRDS

The decline in quality resale homes available for sale in the Jupiter area has been real and it has been steep. From February through September the decline was almost 25% leaving buyers with little to choose from. The good news is, over the first half of October, we have seen better numbers. Not a huge jump, but today’s Jupiter homebuyer has 3.4% more options than they did just two weeks ago. As we head into the traditional seasonal buying season, it is our hope that inventory levels continue to increase.

Home prices have been rising in the Jupiter area with significant increases in the median prices of both condominiums and single family homes. With much competition, for the best new listings, buyers have been bidding prices up as we finally close in on new all time highs, at least in the single family market. Over the past few weeks prices have stabilized, and even pulled back slightly, but at this point it only looks like a bull market pausing a bit to catch it’s breath.

For prices to continue to higher plateaus we will need to see demand strengthen and for that we are still waiting. As of October 15th, pending home are down for the 6th straight month to the lowest levels we have seen since January. On the bright side, the drop has abated a bit over the past two weeks as we head towards a three month stretch where buying activity is historically pretty weak.

Interest rates will be a key component in this market and while they have moved higher in each of the past 5 weeks those increases have been fairly minor. With so much volatility coming out of Washington these days anything can happen but a sharp increase in rates will take the air out of this balloon in a hurry.

Real estate is so localized, buyers and sellers need to fully understand the market forces acting on each particular home as they can be quite different even if the homes are geographically in close proximity to each other. If you are considering doing anything real estate, your best bet is to interview at least three real estate brokers, ask questions and get informed. Educated decisions are powerful decisions. If Paradise Sharks can ever be of assistance in helping you make powerful decisions please contact us anytime at tom@paradisesharks.com or 561.308.0175.

 

Fins up…….

 

 

#jupiterhomebuyers

Million dollar Jupiter homes selling like hotcakes

So far, 2017 has been a banner year for sales of existing homes in the Northern Palm Beaches that close at prices above the $1 million dollar threshold. We have to go all the way back to 2005 for the all time record year for million dollar plus home sales through the real estate community in the Jupiter area.

Hotcakes

For 11 straight years, we have not been able to eclipse that pre-bubble record. Well, unless the wheels fall off this real estate train, we are going break it this year. Not only will we break it but it should be be a very substantial margin.

Through October 1st, sales of these homes are 14% above the same period in 2005. There is no reason to believe there will be any slow down over the last quarter. In fact at this moment, there are enough homes under contract that a new record is realistically already in the books. This year will be the 8th straight year that we have not seen a softening in the ultra-luxury market. By no coincidence, the bull market in stocks is also on a similar run. Times are good and many experts predict the run in the Dow Jones still has much room. Let the bull run. As long as it does real estate prices in the Jupiter area should continue to climb.

Keep your eyes on interest rates, as if there is a potential spoiler out there it is the cost of borrowing money moving higher. Today, the average overnight rate on a conforming fixed rate 30 year loan, is up for the 5th straight week. But the increases have not been great and that conforming loan is still at a historically favorable rate of 3.83%. The Fed keeps saying they not only are going to stop purchasing US debt but they are intent on selling the 4.5 trillion of the Treasuries they hold. If they do things can change. In a hurry.

But for now the Bull is running with stocks and real estates so let him run…….

Jupiter home prices fall for the 1st time since February

The median price of a single family home in the Northern Palm Beaches has been on a major upswing. As of October 1st, that upswing has stopped but it is really no big deal. Over the past month, that median priced home is worth $475,000, down from the $479,000 in was worth 30 days ago.

BLOG PHOTO

Over the past year, the median price of a single family home in the Jupiter area is up 8.3% which is another healthy gain. We have been getting used to healthy gains. In fact, if the year ended right now, 2017 would be the 6th straight year of rising home prices in the Jupiter area. Even when the bubble burst way back in 2005, prices had only been rising for 5 straight years. The annual gains were much higher back then, averaging an amazing 20% gain each year between 2000 and 2005. We all know how steep the fall was from those lofty heights.

This time, the streak is longer but the average annual gain is only 7% which is far less bubble like. Still, when one looks at history, home appreciation is usually more sustainable in the 4% range on an annual basis. Home prices do not operate in a vacuum and one has to look at the stock market as well which is up for a record 9th straight year. How long both these streaks continue is anyone’s guess. However, remember that what goes up, does come down. Always does, so keep a close eye both on the Dow and real estate as a pull back in prices is coming. We just don’t know when or how far.

All one has to do is look at the news almost anywhere and wonder just how more negative can they get. No matter what side of the Trump fence one sits, so far this year the economic growth has been strong with unemployment levels continuing to fall. Interest rates were up again for the 4th straight week but still sit at what would be considered a historically low 3.81% for a conforming 30 year fixed loan. But keep your eyes on the road ahead as there could be some curves that we just don’t clearly see right now.

Pending home sales in the Jupiter area are at the lowest levels we have seen in many years and quality inventory is badly needed. Paradise Sharks is running a commission special through the end of October and the most we will charge any client this month is a total commission of 4.5%. We set some great price records for clients in September and would love to help. Contact us anytime at tom@paradisesharks.com or 561.308.0175.

 

Fins up……

 

 

#jupiterhomeprices

Why would we want to do anything else?

Paradise Sharks has a few tag lines we like to use. One of them is we are different…..by design. And we are damn proud of it.

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Our passion is to raise both the quality and value of real estate services available to everyone. Tailor our services to the needs of the client. To be efficient. To give back. We just closed another transaction last week and the picture is from the closing statement. Credit from Paradise Sharks Real Estate $14,000. Yes, we gave our clients a $14,000 credit and guess what? They did not even ask for it. We just did it.

How does that happen you might wonder. It is really quite simple. We do it all the time. This particular client always calls us when they need anything real estate. In return, we try to provide them a quality real estate experience and hope they look back and think “why would anyone even consider using anybody but Paradise Sharks”. They had a particular need and a very tight timeline. There were very few opportunities that would work and they were expensive. We recognized putting together the funds to close the deal was not going to be an easy task for them. Our investment of time was not excessive and we knew we could help. So when they pulled the trigger, so did we. We just told them they had a $14,000 credit coming from Paradise Sharks on the closing statement. They didn’t ask, we just did it.

They were thankful. They remain thankful. And so do we. We cherish the relationship. We are thankful for their business. We look at that closing statement and it brings a smile to our face. We gave away $14,000 to help someone and they didn’t even have to ask. Indeed, it is much better to give than receive. When we can, we just do. You see we look at real estate differently. How much time did we need to invest. How much value we bring to our clients. It is how we roll. Different…..by design.

Real estate is our passion. We are different…..by design. Why would we want to do anything else? If we can ever show you how we roll and be of help please feel free to contact us at tom@paradisesharks.com or 561.308.0175.

 

Fins up…..

 

 

#jupiterrealestate

Jupiter home sales continue to sputter

What a beautiful Sunday here in paradise as we kick off the month of October. Not sure where September went, but it sure went quickly. Our first stop today was opening day of the Palm Beach Gardens Green Market which is one of our favorite seasonal activities and for my money the “official” kick off of the 2017-2018 season.

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When it comes to Jupiter home sales, and those throughout the rest of the Northern Palm Beaches, it is historically about February first that our northern visitors start writing contracts. We still have 4 months when pending sales usually fall and that is not a great sign for the local real estate market.

The reason is, as of today, pending homes sales in the area have been pretty much straight down over the past 6 months. On itself, that isn’t a big deal because it is the time of the year we expect sales to slow. But what is a big deal is the depths to which they have fallen. Today, the number of homes under contract in the Jupiter area is down about 19% from where they were last year on this day. Go back to 2015 and 2014 we are down 24% from those years. We are 29% short of where we were in 2013.

Pending homes sales are not good and remember we still have 4 more months during which they usually fall further. It is time to pay very close to this market. If you are thinking about doing anything real estate please make sure you are getting fully educated and making informed decisions.

Most signs point to Jupiter home sales falling because the number of quality homes on the market for sale is not good. Sales have been falling but prices have been pushing higher so demand doesn’t seem to be the big problem. It appears to be inventory.

Inventory levels in the Jupiter area are down again this month and sit at the lowest levels we have seen since November 2015. If there is any good news, it is this time of year we usually see more homes hitting the market. But new trends are showing many people are not as quick to list as they once were. They are happier in their current locations and understand if they sell there are not many choices for them to move up, or move down. New construction opportunities in the Jupiter area are not plentiful and expensive. If they sell where do they go.

Paradise Sharks is running a promotion through October 31st hoping it will help sellers who may be on the fence decide to sell and help alleviate the problem. The most we will charge any seller this month is a total commission of 4.5%. We understand we are not the right broker for every seller, but as we always say interview at least three brokers and get informed. We have set price records for multiple clients in September and know our marketing works. Quality homes are in demand and sellers right now are holding the keys. Commissions have been under pressure and that is to the benefit of sellers. Interview, ask questions and get informed.

There are also signs that right now may be the very best time a seller may have to get the best price for their home. It is a topic we will be covering in the weeks ahead and in the meantime in Paradise Sharks can be of help to anyone, with anything real estate, please feel free to contact us at tom@paradisesharks.com or 561.308.0175.

 

Fins up…..

 

 

#jupiterhomesales