Condos in paradise keep getting more expensive

For the 3rd straight month, the median price on a Jupiter area condo has continued to climb. And what a climb it has been. Back on February 15th that median condo was selling for $208,000. On May 15th it had soared to $227,000 an increase of over 9%.

Median condo prices with logo

Strong seasonal sales with the lack of quality inventory has been the story. Sales for the 1st four months of the year were 6.5% stronger than last year but still lagged considerably the record breaking year we experienced in 2015. Potential revenue has also continued to climb which adds support to these increased prices. So far in 2017, the median rental price of a condo in the Northern Palm Beaches has risen to $1,600 up from $1,550 in 2016.

Affordability remains the biggest problem with prices that keep rising. Using standard affordability ratios that means a tenant needs to be making $64,000 to afford that median condo rental. One might wonder just what is that median priced condo and so far this year in the Northern Palm Beaches it would generally be a 2 bedroom 2 bathroom unit with square feet ranging from a 1,065 for a newer building in the heart of Palm Beach Gardens to 1,520 square feet in a 38 year old community in Jupiter.

Expect very little price movement, either up or down, over the next 6 to 8 months unless there is significant economic news to cause a major shift in consumer behavior. If you are going to be doing any buying or selling please get informed. Interview a few brokers and ask questions. It’s typically a buyers market in the months ahead but sellers with quality product should still be looking for solid prices. Inventory is very high in some developments so know your numbers as they can mean many dollars on either end of a transaction. If Paradise Sharks can be of help in any way please feel free to reach out to us at 561.308.0175 or info@paradisesharks.com.

 

Fins up……

 

 

#jupitercondos

The best value in Jupiter real estate? Commissions

Look around at what has happened to the price of the real estate transaction over the past 8 years in Jupiter. Start with the price of the real estate. In 2010, the median single family home in Jupiter cost $320,000. So far in 2017, that same median priced home is up to $460,000. Just about everything associated with a real estate transaction has gotten far more expensive for both buyers and sellers. Service fees charged by closing agents, appraisals, title searches, surveys, inspections, estoppel fees, you name it. All up, and not by just a little bit. Some brokerages even charge “transaction fees” to add more expenses to their clients closing statements. We are making the cost of closing on a new home very, very expensive.

Commission with logo

But, not everything about Jupiter real estate is more expensive over the past 8 years. In fact, the amount spent on real estate commissions has fallen dramatically for sellers of single family homes in Jupiter. Year, after year, after year, after year. For eight straight years, the number of sellers paying a 6% commission has dropped. Eight years ago, the percentage of sellers offering a 3% co-broke commission in Jupiter for the sale of a single family home was 77%. As of today that percentage has fallen steeply to 34%.

Without looking at each and every closing statement we cannot be sure what “total commission” was paid, but for this article we are assuming that the amount offered to the selling brokerage was the same being paid to the listing brokerage. Keep in mind that real estate commissions are 100% negotiable, as are the services provided for those fees. The amounts paid to listing brokers and selling brokers may differ, and at this minute we see commissions offered to selling brokers for properties listed for sale in Jupiter ranging from 1% to 6%. That being said, the vast majority are either 2.5% or 3%. If the selling and listing brokerages are compensated equally this equates to a total commission paid of 5% or 6%.

Every year, since 2009, the percentage of sellers paying a 6% commission has moved lower. While the median cost of a single family home in Jupiter has increased over the past eight years by almost 44% the percentage of sellers paying lower commissions to accomplish the sale has increased dramatically. So what has caused such a sensational increase in the number of sellers paying lower commissions?

Much has to do with competition and brokers who think outside the box to provide a higher level of service for more favorable fees. It’s called efficiency and it’s happening in real estate. Today’s consumer is more informed and demand value. We should also point out that the caliber of marketing during this same period has improved dramatically. Lower costs and better quality. Not much of that going on today, but it is going on in Jupiter real estate. Take a look at the “average” Jupiter listing in 2009 and today and you will see a marked increase in the number of listings with professional photographs and well written property descriptions. Almost 90% of all home buyers shop on line before reaching out to a real estate broker and if a listing isn’t jumping off the screen, then that is a problem. These on-line shoppers do not care if a selling agent is being paid 2.5% or 3%. They see a house they are interested in and if the interest is strong enough they will be taking the next step.

Certainly the cost of property is a big factor. A 3% commission on the median priced $320,000 house in 2010 paid the selling brokerage $9,600. A 2.5% commission on today’s median priced $460,000 home pays the selling brokerage $11,500. The number of agents has increased. Competition has increased. More people fighting for the same dollar. More information is available for buyers on-line but much is bad information and the reality is never in this age of “over information” has the value of a qualified broker been more important.

The fact is, real estate commissions paid by sellers of single family homes in Jupiter, have dropped for 8 straight years. Sellers need to understand commissions and services are negotiable and should always interview at least three brokers and get educated. Ask questions. Find out not only what a broker is going to charge you, but what they are going to do for that money. What have they done for their most recent clients. Have them show you those listings and tell you the results they got. Not every market is the same. Not every seller’s needs are the same. Not every house needs to be marketed in the same fashion. Ask questions, lots of them.

We tell everyone to get educated, not sold. If you are anywhere in Palm Beach or Martin County, Paradise Sharks would be honored to help educate you and have the opportunity to earn your business. You can reach us to set up your complimentary interview anytime at info@paradisesharks.com or 561.308.0175.

 

Fins up……

 

 

#realestatecommissions

Jupiter area home buyers active in May

May is a funny month for home buying in the Jupiter area. In 2015, when we broke all the records for the number of home sales, pending home sales dropped consistently through the month. Last year, home sales were up big during the first half of May and dropped like a rock the second half. This year, as of May 15th, pending home sales are just about even with where they started the month but down about 5% from month ago numbers.

Blog Photo

It’s going to be an interesting summer and we are starting off with pending home sales down about 8% from one year ago. Go back 2 years and we lag those 2015 numbers by almost 18%. In fact, we have not had pending home sales on May 15th this low for many years. But home buyers were pretty active over the past two weeks.

The number of homes they have to choose from continues to dwindle which makes the contract writing over the past two weeks even more bullish. The inventory of homes on the market has dropped 2.5% since May 1st and are down about 6.5% over the past month. Buyers have fewer options than they have had since way back in November. The fact that many sellers are still richly priced and the quality of the inventory continues to disappoint, it actually is great to see as much buying activity as we are.

Interest rates have been helping, but as of today are up 14 basis points over the past three weeks. The solid buying activity we are seeing, even when weak compared to recent years, coupled with limited inventory is pushing prices higher. Significantly higher. Median single family home prices in the Jupiter area are up so far again in May for the 4th straight month to new 11 year highs. Median condo prices are also moving higher this month and as of today are up 7.9% in just sixty days. These are big moves and the most recent data tells us to expect further increases through at least the end of the month.

In Jupiter, the easiest properties to sell right now are single family homes priced under $500,000 and town homes priced under $300,000. They are literally flying off the shelf if priced and marketed properly so negotiate your best commissions on these homes. The hardest to sell are town homes priced above $750,000 so your broker better be thinking out of the box here as demand is weak. Our Tequesta/Jupiter waterfront index is showing continued strength with the lowest inventory of the year combined with the highest pending home sales we have seen in 2017. Remember these are properties that typically start north of $1,000,000. The well healed buyers are very active this year in the Northern Palm Beaches with 157 sales closed with sales prices above $1 million through the end of April. Those numbers are up over 15% from last year. Its a big year for big sales.

Yes, May is a funny month and it’s going to be very interesting to see what happens as we roll downhill into June. As always, if Paradise Sharks can help you in any way with your real estate questions just let us know as we would love to be of service.

 

Fins up…….

 

 

 

#jupiterhomesales

Jupiter home prices soar to new highs

Pay attention to what has been happening to the value of your home if you happen to live in Jupiter, Florida or anywhere in the Northern Palm Beaches. As of May 1st, the median price of a single family home is up strong for the 3rd straight monthly increase.

BLOG PHOTO

Over the past month, that median price of a single family home in the Jupiter area was up another 2.8% and for the first time since 2006 was above $450,000. At this moment, we sit at a brand new 11 year high of $451,000. One year ago today that median price was $420,000. We are up 7.4%.

Prices have been pushed higher by strong seasonal home buying and inventory that is not of the highest quality. Anyone out shopping for a home can tell you the pickings are slim. And prices are being pushed skyward.

What happens from here depends on so many factors. If you are even contemplating buying, or selling, in today’s real estate market your best bet is to be armed with information. Interview at least three real estate brokers and decide who you are going to trust helping you make a very important financial decision. Paradise Sharks is always honored to be invited to an interview. You can reach us anytime at info@paradisesharks.com or 561.308.0175.

 

Fins up…..

 

 

#jupiterhomeprices

Jupiter real estate market starts “summer vacation”

It happens every year. Like clockwork. When it comes to writing purchase contracts for real estate in the Northern Palm Beaches once we hit May 1st the volume of new contracts starts to fade. And they will continue to fade through the summer months and then some. Historically, we wait at least 5 months before we see our next “uptick” in pending home sales and it isn’t unusual to see them continue to fall for up to 9 straight months. The reality is, those of us in the real estate business know the slow down is coming. Our beaches are far less crowded and we have more time to enjoy them. It’s “summer vacation”.

SUMMER VACATION

This year is no different and as of May 1st pending home sales in the Jupiter are down almost 5% over the past two weeks. Compared to year ago numbers pending home sales are down over 10%. Looking back to two years ago, and the record breaking 2015 calendar year, pending home sales as of May 1st are down 18%. The reality is we are starting off “summer vacation” with the lowest pending home sales numbers we have seen in many years.

There are positives. Even at these “low” numbers pending home sales in the Jupiter area were up big since the middle of January. Up by 66% even with the recent pull back. Prices too have been on the move higher. The median priced single family home in the Jupiter area is up over 6% since February. The median priced condo has done even better, up 9% over the same period.

What happens to demand, sales and prices over the coming months will be heavily dependent on inventory, interest rates and how strong the overall economy remains. Still a big divide in our nations capital to say the least. Interest rates are part of that political system and after dropping for 6 straight weeks jumped 11 basis points last week.

The number of homes available for sale in the Jupiter area fell as expected for the month ending April 30th. It was the second straight monthly decline and again in line with “summer vacation”. Not many people want to list their homes this time of the year. They are on vacation too. Buyers will have fewer options in a market where there hasn’t been a lot of well priced opportunities in good condition. It won’t be for at least 4 to 5 months before buyers will have more choices than they do today.

Will interest rates and a strong economy be enough to keep prices moving higher in the Jupiter area over the summer months? It’s doubtful, but if demand doesn’t pull back too drastically prices probably won’t fall much either.

It is going to be an interesting summer for real estate here in the Jupiter area. If you are buying, or selling, please get informed. Interview at least three brokers and ask tons of questions. Paradise Sharks loves to be interviewed and is always honored to have the opportunity to earn your trust, and your business. Contact us anytime at 561.308.0175 or info@paradisesharks.com

Fins up…..

#jupiterrealestate

Jupiter area condo prices up to new 10 year highs

Over the past 30 days, median condo prices in Jupiter and the surrounding communities have made very nice gains. Up 2.6% from where we stood one month ago and up 6% above year ago numbers.

Median Condo Picture

As of this morning, the median sales price of a condo in the Northern Palm Beaches sits at $217,500 and that is the highest number we have seen since way back in 2007. Condo sales in the Jupiter area over the past 30 days have been the strongest we have seen in 10 months. This increase in demand has been a major contributor pushing prices higher.

Watch for strong condo sales for at least the next 6 weeks before things slow down for the summer and fall months. There are still some really great condo opportunities by the beach as buyers, even in this rising price environment, continue to be very cost conscious. The market strength of condo sales over the past month has lagged a bit behind both townhomes and single family residences. Condos with list prices under $300,000 have performed the best with good strength in the $750,000 to $1,000,000 market segment.

Condo prices should continue moving higher over the next 30 days but watch closely as each condo development is experiencing different market statistics. If you are buying or selling, you need to understand the metrics surrounding that particular property to be in your strongest negotiating position. As always if Paradise Sharks can be of help in any way please feel free to contact us at info@paradisesharks.com or 561.308.0175.

 

Fins up……

 

 

#jupitercondoprices