First increase in 4 months is welcoming sign for Jupiter home prices
Let’s face it, the Northern Palm Beaches single family real estate market has been in a bit of a slump. Like Tiger Woods’ golf game, but thankfully for not as long. As of November 1st, median Jupiter home prices moved higher for the first time since July 1st. Since that date it had been a rather steep decline with the median price of a local single family home down from $400,000 to $366,250. To see that slide stop is very good news just as the 2014-2015 market is kicking off.
Inventory continues to remain near 12 month lows, pending home sales are back down to new mult-year lows, but single family home buyers came through with a very strong performance in October. Median Jupiter home prices moved higher. Not by much, not even 1%, but the slide has ended and signs are the steep fall in prices has ended. At least for now. Jupiter home prices remain 9.8% above where they stood last year which is another good sign. The season is here and our streets, bars and beaches are filled with baby boomers. Baby boomers with money who are tiring of cold northern winters. Baby boomers looking for their own slice of paradise. They are the best friend a real estate market could have.
There are contrarian signs everywhere one might look. The stock market has been setting new record highs and analysts are telling us the trend is your friend. If the economy so strong why have interest rates dipped to new 18 month lows? On a side note, interest rates are up significantly this week. If the real estate market is so strong then why was a national builder like Lennar contacting me yesterday and offering 10% commission on almost 100 inventory homes throughout the area. Believe me, builders do not offer 10% commissions if their sales centers are buzzing with activity. There are questions indeed.
But Jupiter home prices remain 24% below the all time highs we hit back in 2005 and should have plenty of room to increase from these levels. Interest rates are low. Cash sales are high. And the “season” is here. Snowbirds should give this market a boost and prices should move higher over the coming months. And let’s not forget our international buyers who buy lots and lots of our real estate. Always interesting, always fun.
Paradise Sharks Real Estate