Jupiter home prices start to move higher

Median prices of single family homes and condominiums in the Jupiter area have been treading water for quite a while. But with recent strong moves in pending home sales we are finally seeing new price records being set in both market segments. The median price of a single family home in the Northern Palm Beaches has broken out and hit new 11 year highs of $438,500. Median condo prices are also up and at $218,000 the highest we have seen in 10 years.

Pending with logo

As of April 15th, pending home sales in the Jupiter area have been up strong again for the 3rd straight month. Over the past month, they are up another 8% but the pace of increases has slowed and it is obvious the season is winding to a close. There is little doubt with our seasonal visitors leaving the number of pending home sales will be retreating and it is a big guess as what is ahead for the summer months. Odds are prices will stabilize at best unless there is some fantastic economic news ahead.

After climbing for 7 months, we have seen the number of homes available for sale pull back for the first time since August. If you are looking for a home to purchase you will quickly realize that in most price segments and neighborhoods, inventory of well priced homes in good condition, are in short supply. The truth be told there is a lot of mediocre inventory out there. As of this afternoon, over 9% of single family home sellers in Jupiter have once again lowered their list prices over the past week, which shows us the market is not as strong as we would like and sellers are still realizing that buyers, even with prices rising a bit, remain very price conscious.

With so few really good opportunities out there these days buyers need to be properly positioned with a game plan and have the ability to show some patience waiting for the right property. Paradise Sharks would be honored to assist you, if you are buying or selling, so please feel free to contact us anytime at info@paradisesharks.com or 561.308.0175.

 

Fins up…….

 

 

#jupiterhomeprices

Jupiter home prices make nice jump in March

The median price of a single family home in the Jupiter area was up 2.4% as of April 1st. While that is a solid monthly increase it really is just the latest “yo-yo” like move that has kept prices essentially flat over the past year. As of today, the median priced single family home in the Northern Palm Beaches sits at $435,300. Last year, at this time, that same median priced home was worth $432,500. So, over the past year a gain of about 6/10’s of 1%. Hardly worth talking about.

Home Price BLOG PHOTO

Not even a week into the month of April, inventory levels continue to move lower which is a good sign if you are hoping for prices to increase. Pending home sales have made big jumps over each of the past 3 months and while not moving higher, have held their own, so far in April. Another sign for prices remaining strong.

The average overnight rate on a 30 year conforming loan sits at 3.95% this morning. That is down 22 basis points since the Fed “raised” rates back on March 15th. Keep a close eye on where they go from here as that is a huge part of the real estate picture moving forward.

Season is winding down and single family home sales will too, in about 6 weeks. June means more single family home closings that any other month here in the Jupiter area. Prices staying in a tight range, as we have been seeing, is a good sign moving forward.

Both buyers and sellers need to be informed in any market. That is more true now than ever before. If Paradise Sharks can ever be of assistance in sorting out your goals and a plan of attack to meet them you can easily reach us at 561.308.0175 or info@paradisesharks.com. We promise you the highest levels of customers service, a winning game plan and value that you will have a hard time finding anywhere else. It’s our promise to our clients and the reason we are truly different…..by design.

Fins up……..

#jupiterhomeprices

Home sales remain brisk in Jupiter area

Seasonal home buying in the Northern Palm Beaches started a bit late this year; January 15th to be exact. Two and a half months later the buying continues and it has been a very strong season for real estate sales. Consider that back in the middle of January, pending home sales in the area were at the worst levels we had seen in years. Here we are 10 weeks later, and the number of homes under contract in the Jupiter area has soared almost 70%.

PENDING WITH LOGO

When demand perks up like that, we look for prices to start moving higher, but so far little movement on median prices for single family homes or condominiums. Single family home prices moved higher during March and are back up to the best levels we have seen since October. Still, there has been little overall movement in the median single family home price in the Jupiter area since February of 2016. At this moment, the price of that median home is still about 11% below the bloated, “pre-bubble” highs we saw back in 2005.

In the condominium market, median prices in the Northern Palm Beaches were also up a bit in March. Median prices in this segment have also fluctuated a bit but have traded in a pretty tight range and are essentially unchanged over the past 10 months. Looking at historical prices, today’s median condo price is still about 25% below the highs we hit a dozen years ago.

Inventory levels had been soaring locally despite what you may be reading about national, or state wide trends. On March 15th, we literally had more homes on the market than at any time over the past 36 months. Thankfully, as of April 1st, we have seen the first meaningful inventory reduction in seven months. If home prices are to move higher we either need buying to continue to show strength, inventory to keep declining, or both.

Your view of the real estate market in the Northern Palm Beaches is dependent on a number of factors, type of home, location, price point, condition. What your home will sell for is a different conversation. Paradise Sharks closely monitors 15 different market segments and if you are looking of the best performing market look at single family homes priced under $300,000. They are selling like hot cakes with inventory under one month. The worst performing segment is single family homes listed above $1,000,000 where inventory levels are at 14 months. But don’t think expensive real estate isn’t moving, as condominiums priced over $1,000,000 are the 4th hottest market segment in Jupiter right now. The only properties selling better are all listed under $300,000 in the single family home, town home and condominium classifications.

Location is equally important when looking at market strength. Over the past 2 weeks pending home sales in Hobe Sound are up 15% while just down the road in Juno Beach sales are down about 13%. About 9% of home sellers in the Jupiter area have lowered their list prices over the past week. We won’t see meaningful increases in prices until that trend comes to an end.

Lots of positive things in today’s market but also lots of questions. If you are looking for a great deal this week your odds are probably better in Juno Beach. If you are a seller and want top dollar let’s hope you are selling an entry level home in Hobe Sound. As always, education and making fully informed decisions is the key to success in any real estate market. Always interview at least three brokers and if Paradise Sharks can ever be of help in any way please feel free to contact us anytime at 561.308.0175 or info@paradisesharks.com

Fins up……..

Jupiter condo prices back up to 5 month highs

The seasonal real estate market here in the Northern Palm Beaches has been white hot over the past couple months. Since January 15th buyers have been active snapping up deals with inventory levels growing and over priced sellers lowering their expectations and asking prices. Median prices on condominiums and single family homes have been under downward pressure for about 8 months.

Condo price with logo

As of March 15th, the median condo price in the Jupiter area was up to $210,650 compared to $208,000 one month ago. This is the highest we have seen condo prices in the area since October. When compared to year ago numbers median condo prices are up 5.3%.

Watch inventory levels, which have finally stopped rising, and interest rates to get an idea of where we go from here. Inventory levels hit their highs in, and around, the Jupiter area on February 15th. It had been about three years since buyers had more choices. Since then inventory has stabilized and moved ever so slightly down. If inventory starts pulling back this will be bullish for prices.

Even though the Fed raised their prime rate on March 15 interest rates on a conforming 30 year loan are down. When the Fed raised their rate the 30 year loan was at 4.17% and today it is at 4.01%. No one factor moving forward will be as important as what happens to interest rates so keep a close eye on them.

For now, we see prices moving higher on Jupiter condos over the next month. If you are buying, or selling, get educated and make informed decisions. Each property is different and decisions must be made understanding the numbers that effect that particular homes’ value. Always interview at least three brokers before trusting them to assist you in a very important financial decision. Don’t get sold, get educated as it can mean a lot more money in your pocket. Where it belongs.

 

Fins up……

 

#jupitercondoprices

Forget the Fed – interest rates aren’t going anywhere

Paradise Sharks has told you for years to not worry about interest rates. Believe me, we truly care about where interest rates go as nothing else plays a bigger role in how much real estate sells and at what prices. However, we also understand the markets are manipulated and if interest rates rise too far, well how much real estate is selling would not be our main concern.

Interest Rates with logo

To prove our point, look at what happened this week. On Wednesday, the Fed raised the benchmark federal funds rate by .25%. Guess what? Since they did the average overnight rate on a 30 year conforming mortgage has dropped by 10 basis points. The Fed raises rates and you can lock in a 30 year mortgage at a better rate. Go figure.

This isn’t something new. On December 14th of last year, the Fed also raised their base rate by .25% but look at the chart. This shows the average overnight rate on that 30 year conforming loan from right before the initial cut was made back in December. If the cost of banks to borrow money has increased by .50% one might ask themselves why the cost for home buyers to borrow money has gone up only 5 basis points.

It’s the same reason the stock market is trading at record highs. Nobody believes the Fed can keep raising rates as the results would be disastrous. Sure rates can go up a bit. After all, it has been over 6 years since the rate on that 30 year fixed mortgage was at 5%. Could it go there again? Certainly. But much higher then watch out. At least until we get debt and spending under control.

You see the national debt here in the United States is getting ready to cross over the $20 trillion dollar threshold. Every 1% in interest rate increases means a $200 billion increase to a budget that hasn’t been balanced for two straight years since Dwight D Eisenhower. Ike left office over 55 years ago. President Trump, love him or hate him, has vowed to be the first President to balance the budget since Ike. I pray he is able to succeed.

But the national debt is only part of the equation. Money has been so cheap corporate America has been borrowing too. A lot. Since the first quarter of 2009, corporate debt has grown by about 60%. The reality is both our government and out corporations need to get spending under control before interest rates can rise too far or the results could be disastrous.

So don’t worry too much about interest rates. Sure they can go up but don’t look for them to move too high. If they move too high the value of your home will probably be the least of you worries.

With real estate Paradise Sharks wants buyers and sellers to make educated decisions. Always interview three brokers when doing anything real estate. Ask a lot of questions and find someone you trust to assist you with what is a huge financial decision. If you are anywhere in Palm Beach or Martin County Paradise Sharks would be honored to be included on your interview list. You can reach us any time at info@paradisesharks.com or 561.308.0175.

Fins up…..

#interestrates

Jupiter pending home sales continue to climb

Home buyers in the Jupiter area are enjoying more choices than they have had for quite a while. Home inventory levels are the highest we have seen in 3 years and interest rates have been treading water at historically low levels. Buyers have been acting and taking advantage of both of these trends. Jupiter pending home sales, and those throughout the Northern Palm Beaches, have put in another strong performance for the first half of March.

Blog Photo

As of March 15th, pending home sales in the Northern Palm Beaches are up 7.8% since the first of the month and up 15.5% over the past 30 days. Over the same time periods in 2016 pending home sales in the area were up 4.1% and 17.2% so we are in line with last years’ performance. Keep in mind that last year total home sales in the Jupiter area were the 2nd highest we have ever seen. Through the end of February more home sales have closed in the Northern Palm Beaches this year.

We are experiencing quite an amazing turnaround as just 2 months ago pending home sales were at the worst levels we had seen in years. Since then, pending home sales in the Jupiter area are up a dramatic 61%. In just two months, we have gone from wondering where the buyers were, to being on track for potentially a record breaking year of home sales.

Prices have been trending lower for months on both single family homes and condominiums. In Jupiter, at this moment, there are 824 properties available for sale. Over the last week 100 of them have reduced their list prices. Buyers are shopping for value and prices are still dropping. Over 12% of all home sellers in Jupiter have lowered their list prices over the past week. With pending home sales up over 60% in two months such a large percentage of sellers would not be lowering their prices unless they were over priced. The odds are many still are, and on the front lines buyers are still very, very price conscious.

Inventory levels had been climbing higher for 6 straight months but as of March 15th we have finally seen a decline. Well, not much of a decline, with 1 fewer unit than a month ago but at least we are seeing the number of available homes leveling off. This trend, it if continues, should provide some support for prices.

The other metric we are closely watching this week is interest rates as the Fed is meeting and all signs point to higher interest rates ahead. We have now been threatened with this for years and at some point the manipulation will have to end. As of this morning, interest rates on a 30 year conforming loan are back up to 4.2%; the highest levels we have seen since July 2105. As our national debt is about ready to hit $20 trillion dollars interest on that amount is scary and at higher rates even scarier. President Trump seems to be reigning in government spending and it is certainly going to be an interesting year ahead in Washington.

The value of a families’ home is typically a huge factor in their overall financial picture. Timing is everything and with affordability a huge factor in the Northern Palm Beaches, anyone buying or selling, needs a broker on their team that can understand their goals and help meet them. Seek knowledge, interview at least three brokers and ask direct questions. Find a broker you trust, one that wants to educate you, and if you haven’t found them, keep interviewing. If you are anywhere in Palm Beach or Martin County, Paradise Sharks would love the opportunity to earn your business and you can reach us anytime at 561.308.0175 or info@paradisesharks.com for a complimentary interview.

 

Fins up……

 

#jupiterpendinghomesales