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.
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 firstname.lastname@example.org or 561.308.0175.