Limited supply helps boost prices
Condo prices in Jupiter and the surrounding communities moved higher for the 4th straight month to levels we have not seen since 2007. As of June 15th, the median price of a condominium in the Northern Palm Beaches has moved up to $210,000, a 30 day jump of 5%. These numbers move condo prices in Jupiter a full 10.5% above year ago numbers.
There is no doubt that shrinking inventories of available properties has been a prime factor in this months’ increase. In fact, sales over the past 30 day fell to 3 month lows and were off by 22.5% in one month. With slower sales and prices moving higher we head into summer with strength and leading indicators showing condo prices in Jupiter moving even higher in the coming month.
Only two more days until we officially kick off summer and it is going to be an interesting time here in paradise. Interest rates have been on the rise as all signs from the Fed had been that interest rates would move higher based on strong economic growth. That was until this weeks get together where they sharply downgraded their economic forecast. In fact, they now are saying annual growth in the economy has fallen to 4 year lows. Watch for interest rates to pull back on this news.
You will hear us say it over, and over, and over again: any macro economic event can turn the fortunes of the local real estate market around in the blink of an eye. For now, lower inventories and prices on new construction, far above current resale prices, should keep prices moving higher. Demand will wane during the summer and that may help prices pull back a bit but lack of inventory may help pull them higher. Keep an eye on the overall economy, the 5 billion dollar Presidential election and please do not make any real estate decisions without being fully informed. We are here to help in you need it.
Paradise Sharks Real Estate