Oh buoy Jupiter condo prices reach another high

Nothing seems to be able to stop the run median condo prices in the Northern Palm Beaches have been on. Day after day, week after week, month after month, it costs more on a daily basis to purchase that median priced condo in the Jupiter area. Since February, Jupiter condo prices are up a very significant 10.3%. On an annualized basis, that is a 41.2% jump which is approaching the runaway annual increase we saw in 2005. You probably remember it was after that banner year that the local real estate market imploded.

Condo prices with logo

As of June 15th, the median price of a condo in the Jupiter area is up another 2.5% over the past 30 days. Year over year gains currently stand at 6.7%. There are a number of factors that have helped prices on their recent moves higher. Affordability has priced many first time home buyers out of the single family home market. The “in” factor of Jupiter as “the” place to be continues to grow. Interest rates continue to fall as they are apparently unaware the Fed has raised their rates three times since December. Seasonal condo sales are always their strongest in the three month period that ends on June 1st. Inventory of quality, well priced condos, in good condition and desirable locations has continued to fall. It really is a pretty long list telling us why prices have been on this run towards record territory.

Sales will slow over the summer months and if historical trends tell us anything it will be October before we see another month where sales will increase. Interest rates, if the Fed has their way, at some point will start climbing higher. New construction is expensive and will continue to drag resale prices higher. And keep in mind even though today’s prices have been climbing higher we still are about 18% below the record median prices set in 2005 and 2006. Where we go from here requires one to pay very close attention.

The most important thing if you are buying, or selling, in the Northern Palm Beaches is being informed. Each community, and location, plays by a different set of rules but there are still some great buys in the best locations if you know where to look. Paradise Sharks takes great pride ensuring our clients are educated and make informed decisions. If we can ever be of help with any of your real estate needs throughout Palm Beach and Martin County reach out to us anytime at tom@paradisesharks.com or 561.308.0175.

 

Fins up…..

 

 

#jupitercondoprices

Hobe Sound home sales climb while Juno Beach buying falls dramatically

As we head into the second half of June the real estate market here in the Northern Palm Beaches is performing about as expected. Both pending home sales and the number of homes buyers have to select from continue to move lower. But to understand what is going on in your neighborhood you need to dig deeper.

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Pending home sales in, and around, Jupiter are down again over the first half of June and currently sit at the lowest levels we have seen since February. Compared to year ago numbers they are down by almost 10%. Go back to June 15, 2015 and they are down about 19%. Interest rates are fantastically low but the Fed did raise their rate again yesterday for the 3rd time since December. Past increases have had little effect on home loans, so far, but keep your eyes open after this third increase.

Is it demand that is the problem or is it the location, type, quality, or price of the homes that are available for buyer to select from? It’s actually a bit of everything. Inventory levels, as of today, are down again for the 4th straight month and are down 5% from last year. But there are significant differences in the strength of today’s market depending on house type, price and location. For instance, since so far on June, while pending home sales are down throughout the Northern Palm Beaches they are actually up by 7.7% in Hobe Sound while in Juno Beach they are down by 23%. A single family home in Jupiter priced under $500,000, in good condition can attract bidding wars and sales prices above list prices while a remodeled condo or town home in Juno Beach can be sitting there at very favorable pricing and not getting any action.

A unit in a Juno Beach oceanfront building we watch closely that was listed at $529,000 earlier this year just went under contract at $367,500. The most recent comparable sale was a year ago at well over $400,000. Both buyers and sellers need to have complete information to make knowledgeable decisions in today’s real estate market or they could make very expensive mistakes. Prices have been rising, but we are starting to see them stabilize, especially in the single family home market. Affordability remains a big concern in the Jupiter area.

Always seek knowledge when doing anything real estate. Paradise Sharks insists our clients are informed and because our boutique culture is customer driven we can also provide lower prices and value our competitors only dream about. Always interview three real estate brokers whether you are buying or selling. Find out how they are going to help you meet your goals and what they are going to charge you. But above everything find out how they are going to inform you. We would love the opportunity to earn your trust so reach out to us anytime at info@paradisesharks.com or 561.308.0175.

 

Fins up……..

 

#jupiterrealestate

Good news on affordability of Jupiter homes

Here at Paradise Sharks we watch what is going on with the local real estate market very closely. We have to if we want our clients to have the most accurate, up to date, information on which to base educated decisions.

Condo Rents with logo

Over the past month something big has happened with the median rental price of a Jupiter condominium. For the first time in 10 years, it has actually gone down. We field comments on a daily basis about the cost of housing in the Northern Palm Beaches. It’s expensive and buying a home is but a dream for many of our neighbors. The cost of monthly rent has forced people to Martin and St. Lucie Counties and long commutes which causes more traffic. There are no easy solutions to affordable housing and it is good to see the condo market doing a bit of self correction. Every little bit helps every budget.

The year after that big bubble popped in the real estate market here in Jupiter, the median price to rent a condominium was $1,200. Straight up it went year, after year, after year, to $1,700 in 2016. Until a month ago, we were looking an another gain in 2017 with the median price sitting at $1,725. But that changed over the past month and for now the 10 year climb in condominium rental prices has stopped.

As of this morning, the median cost of a condo rental is Jupiter is $1,650. Down 4.3% from a month ago. Down 3% from year ago numbers. Not huge drops, but something to keep our eyes on. It has been a decade since the median rent on a Jupiter condo has moved lower. Single family home rents are also down significantly over the past month but holding on to slim gains over 2016 figures. It’s a healthy sign and a tiny bit of help for those looking for housing here in paradise.

If you need help sorting out this giant real estate puzzle please feel free to contact Paradise Sharks anytime at info@paradisesharks.com or 561.308.0175. We are puzzle solvers and would love to be on your team.

 

Fins up…….

 

 

#affordablehousinginjupiter

Strong sales push Jupiter home prices even higher

We are starting to sound like a broken record and the message remains the same again this month. Median single family home prices in the Jupiter area, as of June 1st, moved higher once again as we inch closer to the all time record highs we set way back in 2005. For the 4th straight month, Jupiter home prices have increased, and the median single family home in the area now stands at $455,000 up from $451,000 thirty days ago. Last year at this time, we sat at $415,000 so year over year gains sit at 9.6%. That is one of the highest annual gains in the country.

Median home prices

Monthly single family home sales in May were the highest we have seen since last June and helped push prices higher. June invariably has more single family home closings than any other month of the year and we expect no difference this year. Over the next month expect even higher sales volume with Jupiter home prices moving closer to record territory.

Inventory of quality homes in the Jupiter area remains a significant problem. Interest rates remain a buyers best friend and are down again this week to the lowest levels we have seen since November.

In Jupiter over the past month, the town home market remains the hottest sector with inventory currently down to 2.4 months. Any property, regardless of type, that is priced under $500,000 in Jupiter remains a hot commodity with inventory levels pointing to a strong sellers market. The highest inventory levels remain in the town home segment priced above $750,000 where buyers are still firmly in control. Remember, each property has its own set of numbers and you have to clearly understand those to make informed decisions. If Paradise Sharks can be of assistance with the value of your home, or with any of your real estate needs, please feel free to contact us at 561.308.0175 or info@paradisesharks.com.

 

Fins up…..

 

 

#jupiterhomeprices

Jupiter home prices climb as summertime arrives

Summertime. The Northern Palm Beaches is growing. Changing. Yesterday, about 6:00 I drove by Dune Dogs here in Jupiter and there were over 25 people waiting in line to get a table. Sure the ambiance is beach town cool, the dogs are simply amazing and start at only $2.99 for a regular Naked Dog. But season is over, we get our town back, or maybe we don’t. You aren’t supposed to have to wait for a table at Dune Dog’s in the summertime.

Summertime photo

But, wait we do, so you better have patience. Coincidently, if you are shopping for a home in the Jupiter area you better have patience and a lot of it. You also better have a good job and great credit as living in paradise has been getting more expensive by the day. Jupiter home prices seem to get more expensive with each passing day. Median prices for condos and single family homes in the Jupiter area are up for 4 straight months. That “median priced” condo is $22,000 more expensive than is was back in February. That “median priced” single family home will cost you an additional $32,950. Over the past 120 days, single family home prices are up almost 8%, condo prices are up almost 11%.

Pending home sales are dropping, like they are supposed to do in the summertime. It’s what we count on. But remember we never had to wait in line at Dune Dog’s this time of the year. Things change, it’s why we watch the numbers so closely. Paradise Sharks could not properly represent our clients if we did not understand the numbers. Demand does not appear to be the big issue here, it’s supply. Quite frankly, inventory sucks. A half a million bucks does not buy what it once did and if you put a single family home under that price line on the market, price it properly and work with a broker who knows how to market it, you will sell it very, very quickly. Sellers, keep that in mind when negotiating a commission with your broker.

The number of properties for sale in the Northern Palm Beaches continues to dwindle. Buyers have less choice and with each passing day they have fewer potential listings. Over the past two months, the number of homes a home buyer has to choose from is down about 13%. Do not expect inventory to get better until at least October. It’s summertime.

Demand isn’t the issue, supply is, and smart buyers are positioned to snap up the best deals and borrow money at rates that continue to languish. The interest rate on a conforming 30 year loan is down today to 3.83% which is back down to the lowest we have seen since April. Jupiter home prices continue to climb so luckily you can still borrow money at historically low rates.

If you are shopping for a new home, you must have a game plan. If you don’t, you won’t win and mistakes can cost you many thousands of dollars. Always interview at least 3 brokers. Ask questions. Find out what their game plan is. Paradise Sharks would love to tell you about ours and we would be honored to meet with you. Contact us anytime at info@paradisesharks.com or 561.308.1075.

Fins up……

#jupiterhomeprices

Condos in paradise keep getting more expensive

For the 3rd straight month, the median price on a Jupiter area condo has continued to climb. And what a climb it has been. Back on February 15th that median condo was selling for $208,000. On May 15th it had soared to $227,000 an increase of over 9%.

Median condo prices with logo

Strong seasonal sales with the lack of quality inventory has been the story. Sales for the 1st four months of the year were 6.5% stronger than last year but still lagged considerably the record breaking year we experienced in 2015. Potential revenue has also continued to climb which adds support to these increased prices. So far in 2017, the median rental price of a condo in the Northern Palm Beaches has risen to $1,600 up from $1,550 in 2016.

Affordability remains the biggest problem with prices that keep rising. Using standard affordability ratios that means a tenant needs to be making $64,000 to afford that median condo rental. One might wonder just what is that median priced condo and so far this year in the Northern Palm Beaches it would generally be a 2 bedroom 2 bathroom unit with square feet ranging from a 1,065 for a newer building in the heart of Palm Beach Gardens to 1,520 square feet in a 38 year old community in Jupiter.

Expect very little price movement, either up or down, over the next 6 to 8 months unless there is significant economic news to cause a major shift in consumer behavior. If you are going to be doing any buying or selling please get informed. Interview a few brokers and ask questions. It’s typically a buyers market in the months ahead but sellers with quality product should still be looking for solid prices. Inventory is very high in some developments so know your numbers as they can mean many dollars on either end of a transaction. If Paradise Sharks can be of help in any way please feel free to reach out to us at 561.308.0175 or info@paradisesharks.com.

 

Fins up……

 

 

#jupitercondos