At some point residential real estate changed from the “American dream” to just another commodity. Volatility of median single family home prices in the Northern Palm Beaches is not for the faint of heart. It shouldn’t be that way, but it is so get used to it. It’s one reason we tell you to only buy a home you can afford in good times and bad. Otherwise, you may be flirting with disaster. Make sure with anything real estate you are making educated, fully informed decisions.
Remember back to the good old days? In 2001 median single family homes in the Jupiter area were up 16%. In 2002 they were up another 14%. 2003 they jumped another 18%. Things were just starting to get crazy and people thought you couldn’t lose buying and flipping anything you could get your hands on. In 2004 median homes prices jumped 25%. Not to be outdone in 2005 they jumped another 29%.
It made no sense. It wasn’t logical.
I was working for a developer in 2005 and anyone who would listen I told to sell their home. People thought I was crazy, loco, insane. We put our home on the market and made damn sure it was the lowest priced home in the neighborhood. My neighbors told me I was ruining values in the neighborhood. Well, I told them but they didn’t listen. We sold our house for a profit and by the time the bubble fully deflated it sold a few more times for less than 1/2 of what we got. We weren’t ruining neighborhood values, we were getting out as we knew those numbers made no sense. We made an educated, fully informed decision.
As you know, it all ended and 2005 marked the highest price median home prices we have ever seen in the Jupiter area. For that year, the median single family home sold for $485,000 up a whopping 252% from just 5 years earlier. We thought last year at this time we were going to get back there this season but the winds have changed again. Sure we have seen prices rise for 4 out of the past 5 years but the gains were far more “reasonable”. 4%, 7%, 9%, 6%, 9%. Add them all together and you don’t get much higher than the gains that one year in 2005 gave us.
As of March 1st the median single family home price in the Jupiter area declined for the 1st time in 4 months. Not a huge drop, 2.1% but is takes the median price down to $426,000. But it’s a one month drop as next month at this time median prices will be up and we think significantly. We know because we are out there showing homes every day. We know because we track these numbers daily. It is our life. We know that expensive homes are selling well. We know what is going under contract. I am very comfortable telling you that next month we will announce a significant move higher. $20,000 maybe more. Maybe $30,000. Somewhere between those numbers is my bet. We know and want you to know. For now the record highs of 2005 are safe but we will be gaining. For now. If you are buying or selling real estate anywhere in Palm Beach or Martin County we want to make sure you are making fully educated decisions. Each home, on each street, in each development is different. If you need help figuring out what to do please feel free to contact us anytime at 561.308.0175 or firstname.lastname@example.org.