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 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 firstname.lastname@example.org.