Selling your home? Not getting updates? Oh oh…..

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Today’s real estate market is one nobody has ever seen. It changes by the minute and if you are trying to sell a home and not quickly reacting to those changes, in the end it will cost you; not only a lot of time and headaches, but also a lot of money.

General updates are not enough. You need detailed, timely and accurate updates of what is happening in your municipality, in your neighborhood, on your street, with your particular house. If you don’t understand why it matters, then opportunities to meet your goals may be slippin’ on by. 

For instance, since July 1st inventory levels in Juno Beach are unchanged, yet in Palm Beach Gardens, over the same period they have climbed 17%. Pending home sales in Palm Beach Gardens are down 13% so far this month, while in the Village of Tequesta they have climbed 8.7% higher. If you don’t think these differences affect how your home should be marketed, how you should be positioned, then you might have the wrong real estate broker.

Paradise Sharks Real Estate just closed on a listing that took us 37 days to sell. Like all of our listings, we provided our clients detailed weekly updates with recommendations. Sometimes they listen, sometimes they don’t, but it’s our job to educate them and keep them informed. To put them in a position to win.

In that same neighborhood, today well over 10% of the homes listed have been on the market for over 100 days. My bet is they aren’t getting updates and making adjustments. Over the 37 days we had this home on the market the average overnight rate on a 30 day mortgage kept climbing. But that was the least of our obstacles. Inventory had jumped 73% during our relatively short listing period. We had a home built with frame contraction and as inventory climbs it becomes less desirable.

We also had a lot more competition, as over our 37 day listing period, the number of homes on the market had jumped 71%. Again, we were trying to sell a wood framed house that had not been significantly updated since it was built in 1989. Over that same period, the number of homes under contract in the community had plummeted 27%.

Those changes are somewhat dramatic, even for this market, but show you just why Paradise Sharks Real Estate provides our client’s weekly updates. If we do not react to what is going on around us and adjust both are pricing and marketing strategies then our chances of failure skyrocket. We don’t like to fail because that means we have let our client’s down.

So far in July, in this neighborhood, a total of 8 homes have closed. Our listing was one of them and without providing our clients these updates, and giving them the opportunity to make informed decisions, we would still be on the market. Has the market changed? Yes, it has, as last year over the same period 18 homes had closed. That’s a year over year drop in sales of 56%.

The best part is we ended up with a little bidding war, two cash buyers, and our clients got a sales price above list price. 

Not only were we able to be successful, we did it and only charged our clients a total commission of 3.5%. Our updates alone add value that few brokers can begin to match and our total cost to the client, well, go ahead and shop around. Interview, ask questions and don’t forget to inquire about how they will update you. it can make the difference between success and failure.

Paradise Sharks Real Estate, even with the market changing, can still list most homes in the Northern Palm Beaches for a total commission of 3.5%. If we happen to handle to handle both sides of the transaction we can usually drop your total commission all the way down to a maximum of 2%. And yes, you will get our famous and valuable market updates. Complimentary consultations are super easy to schedule at tom@paradisesharks.com or 561.308.0175. 

While our updates can get lengthy we wanted to show you the last update we provided our clients on the transaction discussed above. See below. This update was delivered to them on June 13th. Four days later we were under contract.

Fins up…….

June 13th Market Update

With the recent price reduction the best news is we have been getting some very good activity. Six showings and one more scheduled for today. This is just the kind of activity we need. The feed back received has been generally good, but still no offers. I do believe we have one coming in today from yesterday showings and will forward that when I see it. Keeping my fingers crossed! Here is the feedback received over the past week;

She felt the home was a great layout, loved the pool area and appreciated it was immaculate and had very “good vibes”. A special home is what she said and it is. However, her client didn’t like the floors, the paint colors, the window mullions and hard as she tried, she could not get her past them to see what a special home it is.

My clients do love the property  however it is a bit over their budget at this time. 

This week is starting off with plenty of economic news and not much of it good. Interest rates rose 14 basis points over night, the stock market looks to be heading to new 12 month lows today and tomorrow or Wednesday it sure looks like the Fed will raise their interest rate by 75 basis points; something that hasn’t been done in about 3 decades.

Obviously, this is all going to have some significant impact on the local real estate market. Median single family home price have dropped from $950,000 to $930,000 over the past couple days and there are lots of questions in the air.

As of this morning in Jupiter Farms we have 41 active/coming soon listings on the market, up from 38 last week. There are 24 homes under contract and that is only down 1 since last week which is a good sign. Sales over the last year sit at 208, also down only 1 from last week. Inventory based on 12 month sales today stands at 2.37 months, still historically low but up another 8.7% from last week and heading in the wrong direction.

This week we had three homes that were under contract and one that was temporarily off the market come back on the market;

15299 91st was listed at $975,000 contract fell through and they lowered price to $915,000 CBS

16673 130th was listed at $899,900 contract fell through and they lowered price to $879,000 CBS

9576 171st still listed at  $695,000 went under contract but it fell fell through CBS

17861 Winterhawk still listed at $1,098,000 back on market from TEMPORARILY OFF THE MARKET CBS

We also had 8 new, or coming soon listings;

13268 154th $1,250,000 Frame priced at $472/SF with pool above average condition

10826 N 151st $599,000 Frame pool below average condition priced at $458/SF

17735 123rd $449,900 Frame pool needs remodeling $310/SF

17717 Bridle $799,900 Frame no pool $427 average condition

17968 Bridle  $725,000 CBS

17119 Alexander Run $999,900 CBS

16040 Jupiter Farms $1,089,000 Frame 2.4 acres pool above average condition $442/SF

16374 133rd $675,000 frame pool no picture yet $370/SF

Besides the 2 homes that lowered there price when coming back on the market (see above) we had three other price reductions;

11301 175th lowered to $740,000 from $760,000 CBS

10959 154th lowered to $1,950,000 from $2,000,000 CBS

12875 157th lowered to $899,999 from $925,000 CBS

Over the past week we had 5 homes close;

17890 121st $587,000 CBS

11828 171st $593,000 Frame was listed at $599,900 no pool needs remodeling sold for $336/SF

15477 133rd $850,000 frame no pool very nicely remodeled listed at $825,00 so bidding war back in April sold for $409/SF

15696 95th $840,000  pool home frame average condition listed at $887,000 sold for $373/SF

15623 91st $820,000 CBS

Finally last week there were 7 homes put under contract. Only 2 were frame and this is a statistic we need to start watching closely as with inventory increasing buyers will tend to favor CBS homes. I believe we are starting to see that.

10152 Sandy Run $749,000 CBS

13033 Randolph Siding $925,000 CBS

12638 154th $1,095,000 CBS

15271 93rd Lane $1,695,000 CBS

9113 165th $750,000 CBS

10735 157th $675,000 Frame average condition no pool listed at $331/SF

12457 188th $600,000 Frame pool needs remodeling but clean listed at $371

Information sheets from all the homes listed above can be found in the link below. Notes on the frame homes are include above.

Once again, I do not think the bottom is falling out of this market but things are certainly getting interesting with the economic news we are seeing. I am happy with the increased activity. Am far happier we are actually supposed to be getting an offer and will be forwarding the updated frame worksheet a little later.

As always, if you have any questions, or need anything additional, please let me know.

Northern Palm Beaches real estate market is getting complicated

As we hit the middle of April, we will start to see a serious winding down of the real estate market in the Jupiter area. Summer is coming and that’s just what happens. Or at least almost always. Covid has changed all the rules, of everything, and the real estate market has been transformed in ways never imagined. It’s complicated and there are no easy answers.

What we do know is median single family home prices are up amazing 68% since this virus landed in America. So far in April they are up another $25,000 to a brand-new record high of $850,000. Median condo prices are up 52% since the virus arrived and are up an amazing 9.8% over the past month to another record high of $379,000.

Affordability is a very big issue these days, and you guessed it. It’s complicated. If you are borrowing money for a home, your world has been turned upside down with an average overnight rate on a 30-year fixed mortgage up 79% in a little over a year with almost every sign showing far higher rates heading our direction. Right now, they sit at the highest levels we have seen in well over 11 years. Modern day highs will be erased shortly and how high they climb will be dictated by inflation, which is running at the highest levels we have seen in well over 40 years. It’s complicated.

The working family looking for a house is faced with interest rates sitting at 11-year highs coupled with record high home prices. Many families face real difficult decisions. In Jupiter, so far this year, the median priced unfurnished, annual single family home rent sits at $4,000. That’s up about 43% since Covid came to town.

There is absolutely no doubt that inventory also remains a very big problem, but thankfully we are starting to see some movement to the upside. So far in April, in the Northern Palm Beaches, condo inventory is up 18.6%, townhome inventory is up 8.5%, and single-family home inventory is up 2.7%. Over the last month, overall inventory in the Northern Palm Beaches is up 11.4% and it’s the second straight month we have seen buyers having more options. Inventory is now the highest we have seen since November but still down 22.4% when compared to year ago numbers. Sellers are still in control of this market but you can start to feel some changes in the air.

Pending home sales have risen, as buyers have more choices, but the gain over the past month is just 1.8%. So far in April, pending home sales have actually fallen and are still down 37% since last year.

It’s the buyer of homes that spend over a million dollars that have driven this market now for over 5 years. Each year, sales above that threshold, set a new record but unless we see a significant change, 2022 will be the first year of decline since 2009. Yes, this year will most likely be the first year we see million-dollar sales fall in 13 years. How do we know that? Well, it is fairly clear that compared to year ago sales, April numbers will be lower than 2021 numbers. It will be the third straight month that has happened. We have not seen a 3-monh consecutive decline in million-dollar sales in almost six years. However, last year’s record was so high it’s really not a huge factor. Like everything else about this market, it’s very complicated.

I wish I had a crystal ball, but can tell you I think we will see a few more weeks of median home prices climbing in the Northern Palm Beaches. After that, we should see a slowdown that will last at least 7 months. Median prices should pull back, but by how much is the big questions. What happens to the economy on a national, and international level, will be the biggest factor in where we head from here. The Fed looks to be increasing their interest rate by 50 basis points at their next meeting and most signs point to at least 5 more increases planned for this year. It’s not out of the realm of possibility that 30-year rates for a home purchase could exceed 7% or 8% by year end. If inflation keeps roaring, which it certainly could, the result economically across the board, including real estate, could be devastating. How much value the dollar loses during this period is a big concern.

It’s complicated, but no doubt this summer in the Northern Palm Beaches real estate market is going to be one for the books. Stay tuned as Paradise Sharks Real Estate will be with you each step of the way publishing our weekly updates and keep you both educated and informed.

Buyers and sellers have never needed complete information like they do today. Understanding the metrics surrounding each property is critical. Paradise Sharks Real Estate has been doing nothing but real estate for more years than I care to count. Our focus is always on our clients, friends and neighbors and their goals. We strongly believe in a high level of honesty and customer service. Our value is unmatched as our boutique brokerage concept has kicked the middleman out of the real estate transaction and we pass these savings directly to our customers, where they rightfully belong.

No franchise fees, no broker with a hand in our pocket. Just complete transparency and a true desire to help others. If we can be of help in any way, even if you just have a question, you would like answered, please feel free to reach out to us. We are super easy to reach at tom@paradisesharks.comor 561.308.0175. We would be thrilled to hear from you.

Fins up…..

#realestate

Why Would You Pay a 6% Real Estate Commission

Asking for a more reasonable fee now commonplace

We started our boutique brokerage for one reason. To do real estate better. Real estate services focused on the customer. Like the old days when the customer truly was #1. Those who follow us know we have been very vocal about many things and one of those is commissions. We have shouted from every roof top that you don’t have to pay 6%. In fact, if you are you are almost always paying too much.

This morning I sat down to analyze what has changed in the local markets since yesterday. It is something I do every day as my clients need to know. And I know that they need to know. So I take that extra steps required to understand what is going one. As I updated single family home sales in Jupiter for the month of May a huge smile came to my face. As of today, there have been 48 sales in Jupiter in May where the seller paid a 5% commission. Why am I smiling? Because only 39 single family homes have sold where the seller paid 6%.

For the second straight month more sellers are paying less by a substantial margin. In fact, over the past two months in Jupiter 55% of all single family home sellers paid less. I like to think we have just a little to do with this. And we like to think we can continue to impact the market. To do real estate better. For our customers.

If you want to experience real estate done right then feel free to give me a call. We will be happy to show you why we are truly different…..by design.

Fins up…..

Tom Priester
Principle Broker

Paradise Sharks Real Estate
561.308.0175
tom@paradisesharks.com
http://www.paradisesharks.com

Do Your Clients Ask “Why Are We Moving?” Upon Seeing Their Listing?

If Not Maybe Something is Wrong

This week I had a call from a client after I had forwarded them the photos and description we had put together telling the story of their home to prospective buyers. The very buyers we will be attempting to entice from the variety of on-line sources, like Trulia. Theirs was a question I had heard before “Can you tell me again why we are moving”. I take great pride when hearing these words as it tells me the presentation we have put together is giving them a sense of seller’s remorse even before we put the home on the market.

If they are seeing and reading the story of their home and are wondering why on earth they are even considering moving just think of the effect it will have on someone out there in Internet land who is actually looking to buy a home. With 86% of all buyers looking for suitable properties on-line before contacting a Realtor there is probably no one thing that will have more of an impact on the activity our clients will see and the price and terms they will realize for their property.

Yet each day I am amazed at the poor level of marketing many sellers find acceptable and just another reason our mission remains to raise the level of service available to anyone seeking real estate services throughout Palm Beach and Martin County. The fact that we strive to do it for the best value is actually just icing on the cake. This week I was showing a home with a 7 figure asking price that was absolutely stunning yet when I went back to see how it looked on-line I was saddened for the seller. Their house deserved better, they deserved better.

When contemplating the sale of any property make sure you interview at least three professional Realtors®. Look at their portfolio. Are their clients asking “Why are we moving?”. If not, I would suggest you interview more Realtors®. If you are in Palm Beach or Martin County, call me. If you are in any other city in this great land go ahead and call me as well. I will be happy to refer you to an agent who will have you asking “Why are we moving?” Always interesting, always fun.

Fins up……………