Jupiter home prices and sales take a dump in July

Maybe it is the summertime blues. Maybe the sky is falling on the real estate market, as some would have you believe. Maybe it’s just a healthy pull back for a market that has run so far, so fast.

Whatever the reason, the median single family home price in the Northern Palm Beaches today sits at $900,000. That’s down 5.3% from the record high of $950,000 we hit back in June. Sales in July were down 19% from June and compared to one year ago were down a fairly significant 34%. Except for February, we have not seen a slower month for single family home closings since May of 2020.

Inventory of single-family homes has dropped slightly so far in August. It’s the first real drop we have seen for a long time, but still the number of homes on the market today is the highest it has been since way since way back in December of 2020. Interest rates have also been dropping over the past few weeks. The average overnight rate on a 30-year fixed rate this morning was at 5.53% and where that rate goes will play a very important role in where the real estate market goes.

The big question is, where do we go from here? As Paradise Sharks Real Estate has been telling you now for over 4 years, the key is sales above the million-dollar threshold. Closing of those homes had a lackluster July. It was the slowest July for closings above a million dollars that we have seen since Covid came to town. Compared to June numbers, sales above a million dollars dropped 33%. Compared to year ago figures, the drop was a more modest 10%. One bright spot is pending home sales at the top of the market are actually up about 13% compared to last year. Keep a very close eye on these numbers moving forward as they are going to tell a story.

The percentage of all single-family sales that closed above a million dollars dropped 17% compared to June. Single family home sales that closed with cash also tumbled in July by 10%. Both of these signs would point to more downward pricing pressure ahead.

It’s a very strange world right now. The latest inflation numbers come out tomorrow and almost everyone would hope for improvement. Government spending remains out of control so who knows. If inflation keeps up, it’s going to be interesting days ahead.

Stay informed if you care about where the Northern Palm Beaches real estate market is heading. Paradise Sharks Real Estate can help you as we love our clients, friends and neighbors to make informed decisions. We also love to save them money. It’s what we do.

Paradise Sharks Real Estate can still list almost any home in the Northern Palm Beaches for a maximum total commission of 3.5%. If we handle both sides of the transaction, your total commission will likely drop all the way down to no more than 2%. Decades of experience, pride in customer service, and value our competition just can’t touch. If we can ever be of service, or consultations are absolutely free and we would be honored to show you how we can save you tons of money. Contact us anytime at 561.308.0175 or tom@paradisesharks.com.

Fins up…..

#jupiterhomeprices

2022 property tax notices coming soon to your mailbox!

Later this month, all property owners in Palm Beach County are going to get a piece of mail with their proposed property taxes for 2022. It’s going to be very interesting to see what numbers are on many of these statements. 

For new residents of the state, with no previous homestead exemptions, one hopes they were educated on what their property tax bill might be. It should be a huge influx of cash for the taxing authorities. It might be a huge surprise for new residents. Pick any property that has sold this year and how those values compare to current valuations on the property assessors website. It’s shocking and there is a whole lot of cash on the line.

I just looked up one valuation for a home that ParadIse Sharks Real Estate has sold a couple different times over the past 5 years. It sold again in January of this year for $1,052,000 and that was an 84% increase in value from the last time it sold less than three years ago.

Last year, the property tax paid on that home was $8,707. This year, if the property assessor is doing what they should be, the new tax bill, without any carry over savings, the property tax bill should be $22,165. Thats a 255% year over year increase in property tax on this one home. Over the past year there have been well over 35,000 property sales in Palm Beach County. Certainly the year over year difference will not be as dramatic as this house, but any way you add it up there is a ton of cash coming in on taxes that there never has been before in history. More money than anyone could imagine.

If you didn’t sell your home, your assessed valuation should also rise. However the most they can increase your property tax bill under current law if you are homesteaded is 3%. Count on it if the county assessor is doing their job. Sure, 3% is not much when compared to a bump of 255% but you wouldn’t believe how much that adds up to.

Oh yes I know, the county has announced they are cutting the millage rate for the first time in 12 years. Peel back that onion and you will see it’s not a big deal. The proposed cut announced earlier this month cuts the current rate of 4.7815 per $1,000 of taxable value all the way down to 4.715. That my friends is a cut of 1.4%. Sure, it’s something, but in the big picture not really much.

Watch your mailboxes as your notification will arrive there soon. Paradise Sharks Real Estate will be doing a follow up story at that time looking at new valuations and where they went, compared to where they should have gone. In the meantime, watch for your property insurance bill if yours is up for renewal. Those increases aren’t anything to laugh at either. Living in paradise is not inexpensive.

If Paradise Sharks Real Estate can answer any questions about your upcoming tax notices, or we can be of help in figuring your current situation out and if your valuation is fair contact us anytime. As with anything real estate, we are here to help. Contact us at your convenience at 561.308.0175 or tom@paradisesharks.com.

Fins up……

#propertytax

Neighborhood Market Update of the Week; Bluffs Jupiter

It’s been 6 months since we brought you an update on the real estate market for single family homes in the Bluffs so let’s take a quick look at what has happened since then.

Active listings currently sit at 3, unchanged from the 3 listed back in February. Buyers in the Bluffs Jupiter, unlike the overall market where inventory has been rising dramatically, still have very little to choose from. Today’s buyer’s still have so few options and not much hope for better selection anytime soon. Location, location, location. Back in February, there were no Bluffs single family active listings priced under $839,000 and todays three listings start at $905,000. 

Before Covid came to town, there had never been a non-waterfront home in The Bluffs sell for above $677,500 and today prices are starting 34% higher than that old record. Back in February, there was a waterfront home in the Bluffs listed at $5 million that raised more than a few eyebrows? Yes, in the Bluffs. $5 million? Sure, it had an addition and was nicely updated. It was also priced $3 million dollars higher than anything had ever sold for in the community. But you know what? It sold for $4,325,000 which beat the old record in the community by a mind blowing $2,325,000. No doubt about it, the real estate market in Jupiter is certainly not for the faint of heart.

Very few lower priced listings hit the market in the Bluffs these days, and when they do, they tend to get snapped up quickly, especially if priced and marketed properly.

Of the 41 single family homes that have sold in the Bluffs over the past year, the least expensive sale closed at $610,500. It was in marginal condition, backed directly to US-1 and that sale was way back in January. Over the past three months the lowest priced sale in the community came in at $825,000. So much for lower priced homes in the Bluffs Jupiter.

Back in February, there were 6 homes under contract with list prices that started at $695,000. Today, there are only 4 homes under contract and the lowest list price sits at $1,095,000. Home prices in the Bluffs Jupiter continue to climb even as we are seeing some pullback in the overall market. 

The median priced sale so far this year closed at $925,000. That is up about 28% from the median sales price in the neighborhood last year which was $722,500. Back in 2020 the median sales price was $580,000 Back in 2019 the median sales price was $530,000. 

Sellers are still firmly in charge of the single-family home market in the Bluffs Jupiter and listings are badly needed to meet current demand. 

Even though sellers are still firmly in control of this market, buyers are looking closely at what they are getting, especially in neighborhoods like the Bluffs where entry level prices have skyrocketed. Interest rates are up dramatically, but thankfully over the past 7 weeks they have pulled back about 6.6%. The average overnight rate on a conforming 30-year loan sits at 5.52% which is still far above the 3.77% they sat back in February. Almost all signs point to rates moving higher as inflation has been running at 40-year highs and needs to be controlled. With real estate sales dropping, mortgage demand hit 22 year lows and that has put downward pressure on mortgage rates. How long they can buck the trend of the macro-economic interest rate is going to be very interesting to watch.

Over the past year, 41 homes have closed through the real estate community in the Bluffs single family market which is down from 48 on February 4th. Sales have fallen about 14.6% when compared to 6 months ago. Inventory is low, prices are climbing and demand staring to wane a but. Still times are very, very good if you own a single-family homes in The Bluffs. 

The time it took for homes to sell, what we call days on market, had a median value of 8 days back in February. Today that median number is 4 days, so homes are selling a lot faster in the Bluffs than they were just 6 months ago.

Keep in mind there are many factors that determine price in the Bluffs Jupiter single family market. Sure, all the homes are essentially the same 3 bedroom – 2 bathroom layout but there are still significant differences. The biggest are the waterfront lots with docks that command far higher prices but don’t hit the market often. The last sale went under contract on April 22nd of this year and closed at $4,325,000. Waterfront demand in the Jupiter area has continued to explode.. Size and location of lot, waterfront vs interior, quality of finishes and features all play a major role in any homes’ value. Many homes in the Bluffs have the added loft which brings additional value.

Current inventory, based on 12-month sales, sits at 3.8 weeks that can only be described as crazy low. Still, it is higher than the 3.2 weeks we sat at just 6 months ago. Again, new listings in the Bluffs are badly needed to meet current demand and owners should expect record prices and fast sales so should be able to negotiate both remarkable service and very favorable commissions. 

Overall, single-family home inventory today in Jupiter sits at 2.78 months which is dramatically higher than the 1 month it sat at six months ago. In Palm Beach County current inventory of single-family homes is at 2.59 months, which is also up significantly from the 3.9 weeks back in February.

The Bluffs remains one of the most sought-after communities in the Palm Beaches for its beachside location. Paradise Sharks LOVES setting price records in the Bluffs and our “Let’s Set a Record Price” marketing packages are available on most homes in either Bluffs 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 your maximum total commission is typically lowered to a maximum of 2%.

Complimentary consultations are easy to schedule either at 561.308.0175 or tom@paradisesharks.com. We would certainly love the opportunity to meet with you, earn your trust and your business. We also would love to save you a tremendous amount of money on commissions.

Fins up…….

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#bluffsjupiter

Jupiter real estate sales a bit sweeter than expected

Paradise Sharks Real Estate loves keeping on top of what is going on with the Northern Palm Beaches real estate market. It makes us a better real estate broker and helps us in assisting our clients, friends and neighbors in making fully informed decisions. The Jupiter real estate market changes by the minute, and not necessarily in tandem with what the press is reporting. In fact, the sales action over the past couple weeks here in the region has been mighty sweet.

Pending home sales, while down for the 4th straight month, were only down 3.8% from June numbers. Compare that to last year, when the July drop was 12%, and things look pretty good from a sales standpoint. Over the past two weeks, pending home sales have actually increased by 2%. Last year, over the same period, they fell 5.5%. Pretty sweet indeed.

In the million-dollar market, we are seeing the same. Yes, July closings were weak, as expected, and yes, pending home sales above the million-dollar threshold were down in July. However, they only dropped 13% compared to last year when the drop was 18%. Pending home sales at the top of the market are 11% higher than year ago numbers.

One of the main reasons we have seen sales, especially over the past couple weeks, pick up a little steam, is interest rates that have been dropping significantly over the past 5 weeks. Today, the average overnight rate on a 30-year fixed, conforming, mortgage, sits at 5.28% and that is an amazing 37 basis points below where they were a week ago. Buyers have been taking advantage.

Inventory levels also continue to climb and in July were up for the 5th straight month. They jumped 12% over the past 30 days, compared to a year ago when they only moved 2.6% higher. Buyers have more selection that they have had in 19 months and compared to year ago numbers inventory levels locally have jumped 64%. More selection certainly has helped sales perk up as well.

While we have seen a nice little bump in local real estate sales, there are still reasons to be concerned. The over-all economy is stuck in a downward spiral because of inflation, because of politics, because of spending and debt, because of divide and consumer sentiment. A very divisive election is now just 99 days away and America’s place as a world leader are being seriously challenged by both Russia and China.

Rental rates for unfurnished annual rentals in Jupiter are at record highs and many families are feeling the pain. Even though pending home sales had a solid month they were still down compared to June. Compared to year ago numbers they are down 33% and currently sit at the lowest levels we have seen in 27 months.

Median home prices have also seen downward pressure with the median prices’ single family home price in the Northern Palm Beaches down to $912,500. This is already down 4% from the $950,000 high we hit back in June. While we expect a bit more downward pressure, at this time certainly no bottom falling out as much of today’s news would have you believe.

However, things can, and as the pandemic showed us, do, change in a hurry so do not get complacent. What is true today, may not be true tomorrow, so be careful to get informed and not sold in what truly is the craziest real estate market anyone has ever seen.

Even though the market is changing, Paradise Sharks Real Estate can still list most any home in the Northern Palm Beaches for a total commission of 3.5%. On the median priced single-family home that represents almost a $23,000 savings over a 6% commission and $14,000 over a 5% commission. Even better, if we handle both sides of any transaction, we can usually lower your total commission to no more than 2%. In fact, Paradise Sharks Real Estate closed a property in Tequesta last Friday where we did just that. We LOVE saving our clients’ money!

If doing anything real estate, please make sure you are making informed decisions. Interview, ask questions, and if Paradise Sharks Real Estate can be of help in ANY way, please feel free to contact us anytime at tom@paradisesharks.com or 561.308.0175. We won’t bite, but we will save you a lot of money!

Fins up……

#jupiterrealestate

Neighborhood Market Update of the Week: Tequesta Country Club

It’s been 6 months since we brought you an update on the single-family real estate market in the Tequesta Country Club area, so let’s take a quick look at what has happened since then.

Active listings currently sit at 4 which is 33% lower than we had back in January with 6, so buyers have even fewer options. Very few lower priced listings hit the market in Tequesta Country Club these days, and when they do, they tend to get snapped up quickly, especially if priced and marketed properly. The least expensive home listed this morning is asking $1,349,000. The most expensive is looking for $13,000,000 with the median list price of $4,049,500. 

It’s interesting to note that through the real estate community the most expensive sale ever in the Tequesta Country Club area was $8,500,000 and only 10 sales have ever eclipsed today’s median list price. It’s hard to find another community in South Florida where prices have risen like they have in the Tequesta Country Club.

Back in January, there were five homes under contract and all of those were listed below $1.5 million. Today, there are also 5 homes under contract and all but one were listed below $1.5 million. The lone exception is a home in Country Club Point that was listed at $5,350,000 that went under contract after 43 days on the market. It was originally listed at $5,750,000. Back in January, the longest it took for any of the homes under contract to sell was 10 days, so at least the most expensive listing today took far longer. The other 4 homes under contract today sold as fast as 2 days on the market with the longest taking 13 days. Sellers, for the most part, are still firmly in control of the Tequesta Country Club real estate market.

Over the past year, 38 homes have closed through the real estate community in the Tequesta Country Club area which is up a bit from 34 in January. Median sales price has been $1,183,500 which is down a measurable 16% from the median sales price of $1,413,750 six months ago.

Median sales price per livable square foot over the past year sits at $519, down from $536 six months ago. That represents a 3% loss and perhaps a sign of the market starting to cool just a bit after what has been a historic run. The price increases in the neighborhood have been among the strongest anywhere in South Florida since the pandemic starting shaping the market dynamics.

The time it took for homes to sell, what we call days on market, had a median value of 5.5 days back in January, today that median number is 8 so homes are still selling quickly in the Tequesta Country Club neighborhood but over the past six months it’s increased 45% and another sign of a potential shift in the market.

Keep in mind there are many factors that determine price, and in the Tequesta Country Club area, there is a very diverse selection of homes. Sales over the past year range in size from 1,242 livable square feet all the way up to 6,127. Year of construction ranged between 1959 and 2022. Size and location of lot, waterfront vs interior vs golf course frontage, quality of finishes and features all play a major role in any homes’ value.

Current inventory, based on 12-month sales, sits at 1.26 months which is historically low, and down a significant 42% from the 2.18 months we saw six months ago. Going back a little longer, we saw a historic low .84 month inventory level back in January of 2021. Overall single-family home inventory today in Tequesta sits at 2.2 months which is up quite a bit from the .96 months back in January. In Palm Beach County current inventory of single-family homes is at 2.52 months which is also way up from the .87 months back in January.

It’s hard to fathom that price increases we have seen in the Tequesta Country Club area can continue and we are starting to see things slow since our last update.

The Village of Tequesta remains one of the most sought after communities in the Palm Beaches for its location, size, school zoning, access to the Loxahatchee River and a very high quality of life rating.

Paradise Sharks LOVES setting price records in the Tequesta Country Club area. Our “Let’s Set a Record Price” marketing packages are available for just about any home in the Tequesta Country Club neighborhood for a total 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 maximum total commission is lowered to no more than 2%.

Complimentary consultations are easy to schedule either at 561.308.0175 or tom@paradisesharks.com. In these updates we consider the Tequesta Country Club neighborhood to be any single-family home west of the bridge and located in Palm Beach County.

Fins up…….

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#tequestacountryclub

Selling your home? Not getting updates? Oh oh…..

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Today’s real estate market is one nobody has ever seen. It changes by the minute and if you are trying to sell a home and not quickly reacting to those changes, in the end it will cost you; not only a lot of time and headaches, but also a lot of money.

General updates are not enough. You need detailed, timely and accurate updates of what is happening in your municipality, in your neighborhood, on your street, with your particular house. If you don’t understand why it matters, then opportunities to meet your goals may be slippin’ on by. 

For instance, since July 1st inventory levels in Juno Beach are unchanged, yet in Palm Beach Gardens, over the same period they have climbed 17%. Pending home sales in Palm Beach Gardens are down 13% so far this month, while in the Village of Tequesta they have climbed 8.7% higher. If you don’t think these differences affect how your home should be marketed, how you should be positioned, then you might have the wrong real estate broker.

Paradise Sharks Real Estate just closed on a listing that took us 37 days to sell. Like all of our listings, we provided our clients detailed weekly updates with recommendations. Sometimes they listen, sometimes they don’t, but it’s our job to educate them and keep them informed. To put them in a position to win.

In that same neighborhood, today well over 10% of the homes listed have been on the market for over 100 days. My bet is they aren’t getting updates and making adjustments. Over the 37 days we had this home on the market the average overnight rate on a 30 day mortgage kept climbing. But that was the least of our obstacles. Inventory had jumped 73% during our relatively short listing period. We had a home built with frame contraction and as inventory climbs it becomes less desirable.

We also had a lot more competition, as over our 37 day listing period, the number of homes on the market had jumped 71%. Again, we were trying to sell a wood framed house that had not been significantly updated since it was built in 1989. Over that same period, the number of homes under contract in the community had plummeted 27%.

Those changes are somewhat dramatic, even for this market, but show you just why Paradise Sharks Real Estate provides our client’s weekly updates. If we do not react to what is going on around us and adjust both are pricing and marketing strategies then our chances of failure skyrocket. We don’t like to fail because that means we have let our client’s down.

So far in July, in this neighborhood, a total of 8 homes have closed. Our listing was one of them and without providing our clients these updates, and giving them the opportunity to make informed decisions, we would still be on the market. Has the market changed? Yes, it has, as last year over the same period 18 homes had closed. That’s a year over year drop in sales of 56%.

The best part is we ended up with a little bidding war, two cash buyers, and our clients got a sales price above list price. 

Not only were we able to be successful, we did it and only charged our clients a total commission of 3.5%. Our updates alone add value that few brokers can begin to match and our total cost to the client, well, go ahead and shop around. Interview, ask questions and don’t forget to inquire about how they will update you. it can make the difference between success and failure.

Paradise Sharks Real Estate, even with the market changing, can still list most homes in the Northern Palm Beaches for a total commission of 3.5%. If we happen to handle to handle both sides of the transaction we can usually drop your total commission all the way down to a maximum of 2%. And yes, you will get our famous and valuable market updates. Complimentary consultations are super easy to schedule at tom@paradisesharks.com or 561.308.0175. 

While our updates can get lengthy we wanted to show you the last update we provided our clients on the transaction discussed above. See below. This update was delivered to them on June 13th. Four days later we were under contract.

Fins up…….

June 13th Market Update

With the recent price reduction the best news is we have been getting some very good activity. Six showings and one more scheduled for today. This is just the kind of activity we need. The feed back received has been generally good, but still no offers. I do believe we have one coming in today from yesterday showings and will forward that when I see it. Keeping my fingers crossed! Here is the feedback received over the past week;

She felt the home was a great layout, loved the pool area and appreciated it was immaculate and had very “good vibes”. A special home is what she said and it is. However, her client didn’t like the floors, the paint colors, the window mullions and hard as she tried, she could not get her past them to see what a special home it is.

My clients do love the property  however it is a bit over their budget at this time. 

This week is starting off with plenty of economic news and not much of it good. Interest rates rose 14 basis points over night, the stock market looks to be heading to new 12 month lows today and tomorrow or Wednesday it sure looks like the Fed will raise their interest rate by 75 basis points; something that hasn’t been done in about 3 decades.

Obviously, this is all going to have some significant impact on the local real estate market. Median single family home price have dropped from $950,000 to $930,000 over the past couple days and there are lots of questions in the air.

As of this morning in Jupiter Farms we have 41 active/coming soon listings on the market, up from 38 last week. There are 24 homes under contract and that is only down 1 since last week which is a good sign. Sales over the last year sit at 208, also down only 1 from last week. Inventory based on 12 month sales today stands at 2.37 months, still historically low but up another 8.7% from last week and heading in the wrong direction.

This week we had three homes that were under contract and one that was temporarily off the market come back on the market;

15299 91st was listed at $975,000 contract fell through and they lowered price to $915,000 CBS

16673 130th was listed at $899,900 contract fell through and they lowered price to $879,000 CBS

9576 171st still listed at  $695,000 went under contract but it fell fell through CBS

17861 Winterhawk still listed at $1,098,000 back on market from TEMPORARILY OFF THE MARKET CBS

We also had 8 new, or coming soon listings;

13268 154th $1,250,000 Frame priced at $472/SF with pool above average condition

10826 N 151st $599,000 Frame pool below average condition priced at $458/SF

17735 123rd $449,900 Frame pool needs remodeling $310/SF

17717 Bridle $799,900 Frame no pool $427 average condition

17968 Bridle  $725,000 CBS

17119 Alexander Run $999,900 CBS

16040 Jupiter Farms $1,089,000 Frame 2.4 acres pool above average condition $442/SF

16374 133rd $675,000 frame pool no picture yet $370/SF

Besides the 2 homes that lowered there price when coming back on the market (see above) we had three other price reductions;

11301 175th lowered to $740,000 from $760,000 CBS

10959 154th lowered to $1,950,000 from $2,000,000 CBS

12875 157th lowered to $899,999 from $925,000 CBS

Over the past week we had 5 homes close;

17890 121st $587,000 CBS

11828 171st $593,000 Frame was listed at $599,900 no pool needs remodeling sold for $336/SF

15477 133rd $850,000 frame no pool very nicely remodeled listed at $825,00 so bidding war back in April sold for $409/SF

15696 95th $840,000  pool home frame average condition listed at $887,000 sold for $373/SF

15623 91st $820,000 CBS

Finally last week there were 7 homes put under contract. Only 2 were frame and this is a statistic we need to start watching closely as with inventory increasing buyers will tend to favor CBS homes. I believe we are starting to see that.

10152 Sandy Run $749,000 CBS

13033 Randolph Siding $925,000 CBS

12638 154th $1,095,000 CBS

15271 93rd Lane $1,695,000 CBS

9113 165th $750,000 CBS

10735 157th $675,000 Frame average condition no pool listed at $331/SF

12457 188th $600,000 Frame pool needs remodeling but clean listed at $371

Information sheets from all the homes listed above can be found in the link below. Notes on the frame homes are include above.

Once again, I do not think the bottom is falling out of this market but things are certainly getting interesting with the economic news we are seeing. I am happy with the increased activity. Am far happier we are actually supposed to be getting an offer and will be forwarding the updated frame worksheet a little later.

As always, if you have any questions, or need anything additional, please let me know.