The median price of a single family home in the Northern Palm Beaches continues to climb. We have to go back to 2005, before the bubble burst, for the record high price of $488,250. We aren’t there yet but as of July 1st we are back to $460,000 and within 6% of that all time plateau. With prices rising almost 8%, in just the past 5 months, can a new record be headed our way?
Sales will continue to slow in the coming weeks. Inventory is not anything to get excited about and frankly there is a lot of junk out there. Many sellers still happy to price a bit above the market as buyers have been pushing sales prices skyward. So far this year demand has been strong enough to keep prices moving higher. Sales will hardly be robust in the weeks ahead so the question is how much are buyers going to pay for what they have to choose from. Jupiter home prices seemed poised to cool a bit but time will tell.
Homeowners seem more content in their existing homes, many younger buyers are strapped with record levels of student debt, seasonal buying trends; there are a number of reasons this summer’s market isn’t sizzling hot. Interest rates, to date, have not yet been affected by the Federal Reserve increases but are up today for the 4th straight week and sit at the highest levels we have seen for a couple months. Janet Yellen and her team over at the Fed appear positioned to keep increasing with the “policymakers” expecting one more increase this year and three more bumps in 2018. Extremely hard for home prices to keep climbing if the cost of a 30 year mortgage is moving higher. Keep your eyes on inflation. Keep your eyes on rising taxes in other states like Illinois driving more people to the sunshine state. Keep a watch on the political divide in this country.
Certainly not a market for the faint of heart. Certainly is a market any buyer or seller should understand the home price data for their particular neighborhood as each one is different. Some are strong, some are looking sick. Know the signs and use them to your advantage. If Paradise Sharks can ever be of assistance please feel free to contact us at firstname.lastname@example.org of 561.308.0175 for a complimentary consultation.