Jupiter home prices fall for the 1st time since February
The median price of a single family home in the Northern Palm Beaches has been on a major upswing. As of October 1st, that upswing has stopped but it is really no big deal. Over the past month, that median priced home is worth $475,000, down from the $479,000 in was worth 30 days ago.
Over the past year, the median price of a single family home in the Jupiter area is up 8.3% which is another healthy gain. We have been getting used to healthy gains. In fact, if the year ended right now, 2017 would be the 6th straight year of rising home prices in the Jupiter area. Even when the bubble burst way back in 2005, prices had only been rising for 5 straight years. The annual gains were much higher back then, averaging an amazing 20% gain each year between 2000 and 2005. We all know how steep the fall was from those lofty heights.
This time, the streak is longer but the average annual gain is only 7% which is far less bubble like. Still, when one looks at history, home appreciation is usually more sustainable in the 4% range on an annual basis. Home prices do not operate in a vacuum and one has to look at the stock market as well which is up for a record 9th straight year. How long both these streaks continue is anyone’s guess. However, remember that what goes up, does come down. Always does, so keep a close eye both on the Dow and real estate as a pull back in prices is coming. We just don’t know when or how far.
All one has to do is look at the news almost anywhere and wonder just how more negative can they get. No matter what side of the Trump fence one sits, so far this year the economic growth has been strong with unemployment levels continuing to fall. Interest rates were up again for the 4th straight week but still sit at what would be considered a historically low 3.81% for a conforming 30 year fixed loan. But keep your eyes on the road ahead as there could be some curves that we just don’t clearly see right now.
Pending home sales in the Jupiter area are at the lowest levels we have seen in many years and quality inventory is badly needed. Paradise Sharks is running a commission special through the end of October and the most we will charge any client this month is a total commission of 4.5%. We set some great price records for clients in September and would love to help. Contact us anytime at firstname.lastname@example.org or 561.308.0175.