Summertime. The Northern Palm Beaches is growing. Changing. Yesterday, about 6:00 I drove by Dune Dogs here in Jupiter and there were over 25 people waiting in line to get a table. Sure the ambiance is beach town cool, the dogs are simply amazing and start at only $2.99 for a regular Naked Dog. But season is over, we get our town back, or maybe we don’t. You aren’t supposed to have to wait for a table at Dune Dog’s in the summertime.
But, wait we do, so you better have patience. Coincidently, if you are shopping for a home in the Jupiter area you better have patience and a lot of it. You also better have a good job and great credit as living in paradise has been getting more expensive by the day. Jupiter home prices seem to get more expensive with each passing day. Median prices for condos and single family homes in the Jupiter area are up for 4 straight months. That “median priced” condo is $22,000 more expensive than is was back in February. That “median priced” single family home will cost you an additional $32,950. Over the past 120 days, single family home prices are up almost 8%, condo prices are up almost 11%.
Pending home sales are dropping, like they are supposed to do in the summertime. It’s what we count on. But remember we never had to wait in line at Dune Dog’s this time of the year. Things change, it’s why we watch the numbers so closely. Paradise Sharks could not properly represent our clients if we did not understand the numbers. Demand does not appear to be the big issue here, it’s supply. Quite frankly, inventory sucks. A half a million bucks does not buy what it once did and if you put a single family home under that price line on the market, price it properly and work with a broker who knows how to market it, you will sell it very, very quickly. Sellers, keep that in mind when negotiating a commission with your broker.
The number of properties for sale in the Northern Palm Beaches continues to dwindle. Buyers have less choice and with each passing day they have fewer potential listings. Over the past two months, the number of homes a home buyer has to choose from is down about 13%. Do not expect inventory to get better until at least October. It’s summertime.
Demand isn’t the issue, supply is, and smart buyers are positioned to snap up the best deals and borrow money at rates that continue to languish. The interest rate on a conforming 30 year loan is down today to 3.83% which is back down to the lowest we have seen since April. Jupiter home prices continue to climb so luckily you can still borrow money at historically low rates.
If you are shopping for a new home, you must have a game plan. If you don’t, you won’t win and mistakes can cost you many thousands of dollars. Always interview at least 3 brokers. Ask questions. Find out what their game plan is. Paradise Sharks would love to tell you about ours and we would be honored to meet with you. Contact us anytime at email@example.com or 561.308.1075.