Jupiter condo prices rise after 4 month slide

When annual visitors start flooding our bars, beaches and bistros you know season is in full swing. It takes our guests until about the middle of January to start serious real estate buying and as Paradise Sharks has been telling you, pending home sales will be on the rise. They already are.

Through today, pending home sales in the Jupiter area are up 14.2% since the first of the year. Last year, we saw pending home sales jump 16% during the month of January and we are on track to match those gains this year.

No doubt, prices are a part of the equation and median condo prices in the Northern Palm Beaches are up as of January 15th to $225,000, which is a very healthy 4.2% increase over the past month. However, this comes on the heels of 4 months where prices had been driven lower. Today’s prices are still slightly below the 12 month highs we hit 7 months ago in June. Compared to year ago numbers, median condo prices in the Jupiter area are up about 7.1%.

Watch for more buying, more inventory concerns and higher prices in the weeks ahead. We are seeing great activity in some neighborhoods with excess inventory in others. Quality homes in good condition with realistic market pricing are tough to find. Property that is not properly marketed can sit for months and that costs sellers money. Lots of it. Please make sure, when listing a home, that you interview at least 3 brokers and ask to see how their most recent listings have fared. Look for a broker who is trying to educate you, not sell you, and ask them how many record prices they have set for clients over the past year.

Paradise Sharks loves setting record prices and we love to educate our clients. We would be honored to sit down with you and explore how we can make sure you walk with the most money at the closing table. Reach us anytime at 561.308.0175 or tom@paradisesharks.com.

 

Fins up…….

 

 

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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%.

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

NOW is the time to put your Jupiter condo on the market

If you live in Jupiter Florida and are thinking about selling your condo the time to stop thinking and get acting is now. The reason is simple if you believe historical trends. Year after year there are three months that stand out when we look at the sales of condominiums in this seaside village.

March, April and May invariably lead the pack when counting the number of condo closings each year by month. Once again in 2016 they were the busiest months for closings in Jupiter with over 32% of all sales during this 92 day stretch. Going back over the past 7 years the trend is about the same with 34% of all condo sales in Jupiter closing between March 1st and May 31st.

So here we are on January 4th, why do we get going now if the big sales months are still almost 2 months away. First, it is going to take you a little time to schedule interviews with real estate brokers. Then to take their advice on staging, decluttering and scheduling photos and the clock keeps ticking. Then you still need to get the brokers marketing machine working to find a buyer who is willing, ready and able to pay your price.

Even though about 62% of Jupiter condo sales closed for cash last year it still takes between 30 and 45 days between going to contract and the actual closing. We see a few go quicker but with required association approvals that is fairly rare. With association approval, inspections and potential loan underwriting it all takes time. Once you add these time lines together you will see that someone who is thinking about selling a condo today in Jupiter had better get moving if they want to hit the historical hot spot of this market.

So if you are thinking about selling a Jupiter condo you need to get moving. Remember to interview at least three real estate brokers and ask a lot of questions. Find out what they are going to charge you and what their marketing plans will look like. Ask questions and find someone you trust with what is a big financial decision. If you want to walk away with the best price the time is perfect for you to do just that. If your condo is anywhere in Palm Beach or Martin County the numbers are about the same and Paradise Sharks would be honored to be on your interview list. We never charge our clients over 5% and are happy to show you our track record. Contact us anytime at info@paradisesharks.com or 561.308.0175.

 

Fins up……

 

 

#jupitercondo

Jupiter area condo prices down for 2nd straight month

Ever since the end of the election 13 days ago the markets have been nothing short of crazy volatile. The massive bond market sell off has pushed interest rates to the highest levels we have seen in a long time. Look for them to pull back as Paradise Sharks will remind you again that there is a sovereign debt crisis here in America and the rest of the world. A one point move in interest rates means another $200 billion dollars in annual carrying costs for America and frankly we can’t pay our bills now. One day the debt bubble is going to burst but probably not yet. If this is the start of that bubble popping hold on for the ride. But we do need somebody to start buying our bonds again and in my opinion the only way that is going to happen is the Fed keeps buying or President Trump shows very quickly that his promise of paying down our national debt in a “big league” way is reality and not just another campaign promise. It certainly isn’t going to be easy. But it will be very, very good for our bond rating.

These rising rates have buyers and sellers scrambling a bit and the first “post election” week brought a strong surge in pending home sales in the Jupiter area. Up 15% since the first of the month but we have seen them pull back a bit over the past few days. As of November 15th, the median priced condo in the Jupiter area has sold for less money for the second straight month to the lowest price levels we have seen since April.

Sales of condos over the past month in the Northern Palm Beaches were at the lowest levels we have seen since February. Some of this is seasonal but compared to last year condo sales this month were down about 10% from 2015 numbers. Pricing pressure remains to the downside but median condo prices in the Jupiter area remain 4.25% higher that one year ago. Look for sales and prices to be under pressure for the next 30 days.

If you are doing anything real estate this market can move quickly and every location and market segment is seeing different realities. Do complete research, interview at least three real estate brokers and make informed decisions. If Paradise Sharks can ever be of assistance we would love the opportunity to earn your business. Complimentary consultations are super easy to set up at 561.308.0175 or info@paradisesharks.com.

Fins up…….

#jupitercondos

Condo sales in Jupiter area drop to 8 month lows

Yes it is true. We have to go all the way back to February to find a month where fewer condo sales closed in the Northern Palm Beaches. As of October 15th, condo sales in the Jupiter area are down about 12% from the previous month. Looking at the some period last year we are down just about 4%.

On it’s own not much to worry about as seasonal trends show us in only 4 months do we historically see slower sales than the month of October and one of those months is September which is the worst month for condo sales in the Jupiter area. So it’s expected. Condo sales in Jupiter typically tank this time of year and we really do not see a significant pick up in closings until February. Each year our winter visitors come to town, get settled, start thinking this Jupiter lifestyle is crazy good and we really need to buy. So they do. Starting in January right through April, pending condo sales will spike significantly. These trends are important and there are reasons why Paradise Sharks spend so much time each day tracking what is happening in the local real estate market. Our clients deserve complete information so they can make fully educated decisions. We insist upon it and it what makes us different…..by design. These numbers and the knowledge that goes with them saves our clients money and lessens their chances of making mistakes.

Median sales prices on condos also have fallen over the past month. After treading water at 9 year highs since June we saw a fairly insignificant drop of about 1.5% from $215,000 to $212,000. Nothing more than a healthy pullback but keep your eyes on the road ahead. When evaluating the market the past is very important when planning for the future.

This year we have an election that has people a bit freaked and the sooner we put it behind us, one way of another, the better it will be for public sentiment. Paradise Sharks is calling for slower condo sales for the next 3 to 4 months with pricing pressure to the downside. Nothing drastic but watch carefully and understand if you are buying over the next few months the historical market trends favor you. However, sellers know the season is coming. January the snowbirds will be buying and they understand the pendulum will swing back in their favor. At least they do if they are Paradise Sharks clients.

Remember when it comes to doing anything real estate interview at least 3 brokers. Paradise Sharks is a boutique real estate firm dedicated to high quality, killer communication and true value. With no franchise fees, or brokerage splits we take the middleman out of the real estate transaction and never charge our clients over 5%. It is always super easy to reach us at 561.308.0175 or info@paradisesharks.com.

 

Fins up…..

Jupiter condos may be getting more expensive

If you didn’t see the news yesterday and own a condo in the Jupiter area, or are thinking about either selling or buying one, pay attention. Close attention. Yesterday President Obama quietly signed H.R. 3700 and what you need to know is it will make it much easier for borrowers to finance condo purchases. Here in the Northern Palm Beaches that is BIG news.

You see, ever since the real estate bubble burst back in 2006, it has been tough to finance condos. In almost all cases, a borrower needed at least 20% down and more often than not 30% down to qualify for a loan. Most first time home buyers could not even think about a condo as they did not have the significant amount of cash it requires for a conventional loan with large down payment requirements. Prices were held in check because of the difficulty of financing.

First time home buyers with limited resources looking to buy a home with a low down payment FHA loan were locked out of the condo market. That door has now been opened. Consider that in Jupiter last year the median single family home price was $425,000 and the median condo price was $260,000. Guess which one is probably more in line with the budget of a first time home buyer? Consider that 65% of all single family home purchases in Jupiter last year were financed and many of those with low down payment FHA loans. Guess what percentage of condos closed with loans. Only 36% and almost all of those were conventional loans with down payments of 20% or 30% or more.

All of a sudden those buyers who want to buy but could not afford a single family home or come up with large down payments are now in the condo market because of the bill signed yesterday by President Obama. Increased demand with no change in supply means higher prices. All things being equal, this new financing availability could easily add 10% to the median condo price in the Jupiter area; especially in those communities near the median price of $260,000 and below.

It won’t happen overnight but median prices on condos will be under upward pressure now that an FHA loan is a viable means of financing. If you are looking to buy, buy now. If you are looking to sell you may decide waiting is a better option. There are certainly other market forces that play a role in prices but this news is truly a game changer.

Again, real estate is not an easy game and finding someone who knows how it is played is a challenge. Before buying or selling anything, interview at least 3 brokers. Ask a ton of questions and find out how they will help you meet your goals and how much it is going to cost you. Paradise Sharks LOVE to be interviewed and you can set yours up today at 561.308.0175 or info@paradisesharks.com.

 

 

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