Jupiter real estate market looking tired as we wind up 2016

We always marvel at how time goes by so damn quickly. This is Paradise Sharks last deep look at the Jupiter area real estate market in 2016, and what a year it has been. Median single home prices in the Northern Palm Beaches will be up again for the 5th straight year, adding another 10% and bringing us within 8% of all time record highs.

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It has not been such a great year for median condo prices in the Jupiter area that look to be about flat since January. Here, we also lag the record median prices set back in 2006 by a whopping 27%.

As we wind down another year, the real estate market in Jupiter and the surrounding communities is looking tired. Hopefully, we are not watching the market head into hibernation but right now we are looking for good news. It isn’t jumping off the pages.

Pending home sales as of today, are down for the 6th time in 7 months. In our last report, we were a bit surprised to see a spike in pending home sales. That appears to have been nothing more than a post election buzz and it was short lived. Over the past 2 weeks, pending home sales in the Jupiter area are down over 5%. Over the past 7 months, they are down 33% and currently at the very worst levels we have seen in years. We need home buyers to get energized. We need them to wake up.

Inventory appears to be playing in their favor as the number of homes on the market for sale is up today for the 4th straight month. Inventory levels are up 14% since last year on this date. However, much of that inventory tends to be richly priced. As of this moment, the average list price for all properties on the market for sale in the Jupiter area is a rather astounding $529,000. Of the homes under contract, the average list price is $369,000. Of the sales so far this year, the average sales price is $322,500. When sellers are asking so much more than buyers are willing to spend, sales stall. So far prices have been holding up but you have to really ask how long can this continue.

Condo prices have already cooled and it is going to be hard for single family home prices to not start doing the same. Interest rates are up over 1/2 point but thankfully have stabilized a bit. Many signs pointing to higher interest rates ahead and that will not be a boost for the market if they climb too high.

Sellers will still need to lower their list prices. Over the past week or so, 145 on them did. That is about 6.5% of all people trying to sell a property in the Northern Palm Beaches lowering their price in the past few days. Significant. We hope buyers are going to start buying. Seasonal activity that in the Northern Palm Beaches we always rely on. Are they on the way? We hope so.

If you are doing anything real estate, understand the market surrounding any property. Each property is different and if you do not understand the supply and demand, the forces that dictate price, then you may be in trouble. Interview at least three real estate brokers, listen to what they say, ask questions. Paradise Sharks LOVES to be interviewed and would be honored to have the opportunity to earn your trust and your business.

 

Fins up…..

 

 

 

#jupiterhomeprices

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Published by

Tom Priester

After spending years among the top individual performers at one of Palm Beach County’s largest and most successful real estate brokerages, Tom Priester knew there was another way to do real estate. A better way. Real estate services focused on the customer. Like the old days when the customer truly was #1. He tired of listening to why he should be going out to have his customers sign one sided buyers’ brokerage agreements. He tired of hearing how he should be selling customers why paying higher commissions, like 7% and 8%, was to their benefit. He tired of hearing how he should sell his clients on why they should be paying hundreds of dollars in additional “transaction fees”. The business had slid way too far from being focused on the customer. His customer. So he decided the time was right to be different…..by design. To start his own unique boutique real estate firm truly focused on his customers. They will now have access to a process focused on them. Only the best marketing techniques to sell their homes. No cutting corners. Commission structures based on his clients needs not his. Paradise Sharks was born out of Tom’s passion to return this business to the customer. Where it belongs. If you want a real estate experience that benefits you, just give Tom a call at 561 308-0175 or send him an e-mail at tom@paradisesharks.com. You can always pay more and receive less but that just would not make any sense. Would it?

4 thoughts on “Jupiter real estate market looking tired as we wind up 2016

  1. Rav,

    Thank you for reaching out. The real estate market is constantly changing and that is why anybody thinking about doing anything real estate needs to be completely educated and watch the changes. What is true today isn’t probably going to be true tomorrow. Recently, we had a client we begged to take a very solid offer and no matter what information we put in front of them they did not want to listen. One day after the final rejection a bank owned foreclosure hit the market at a very favorable price and condition. At this moment that bank owned listing looks like it will likely sell for almost 17% below the offer they had. The market changed in an instant and so did the value of their property.

    Not sure where you are seeing opposite in Paradise Sharks December 15th report. Home inventory was up on December 1st and it was up again in this report. Inventory remains far above year ago levels. Interest rates were up and still are. Pending home sales in our December 1st report made a strong and unexpected move higher; the first in 7 months. That move quickly changed course and we gave back those 2 week gains and then some. On December 1st we were 16 units above multi year lows and today we are back setting new ones. Not what I would call opposite. Median prices on homes did move higher as we stated they would and sales were the slowest we have seen in a very long time.

    Seasonal buying should be underway but so far all we have seen was what now appears to be some post election euphoria fueled by those wanting to beat any potential moves higher in interest rates. We hope this helps and again with anything real estate do not blink your eyes as it will change.

    Fins up…..

    Tom Priester
    Principal Broker

    Paradise Sharks
    561.308.0175
    info@paradisesharks.com

  2. Tom,

    I appreciate your frank assessment of the Jupiter market. Most people just cherry pick statistics to paint a rosy picture. It certainly appears the market has lost momentum and is in a pretty vulnerable state.

    1. Jack,

      Thank you. Ours is a boutique brokerage with a philosophy of providing a high level of customer service and focusing our services on our clients goals and not ours. We do not sell, we educate and believe everybody doing anything real estate should be making fully educated decisions whether they are buying or selling. Knowing the numbers surrounding each property is incredibly important to avoid mistakes whenever possible. One house is completely different than the next. We just sold a townhouse in one Jupiter neighborhood for a record price while another single home just down the street is sitting without much traffic. Different metrics on different homes in a very similar location.

      Since we published this story just 6 days ago pending home sales in the Jupiter area have dropped another 5% and we certainly need to see some buying as 2017 kicks off. Either way we will continue bringing our readers the facts each and every week

      Merry Christmas….

      Tom Priester
      Principal Broker

      Paradise Sharks
      561.308.0175
      info@paradisesharks.com

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