Million dollar Jupiter homes selling like hotcakes
So far, 2017 has been a banner year for sales of existing homes in the Northern Palm Beaches that close at prices above the $1 million dollar threshold. We have to go all the way back to 2005 for the all time record year for million dollar plus home sales through the real estate community in the Jupiter area.
For 11 straight years, we have not been able to eclipse that pre-bubble record. Well, unless the wheels fall off this real estate train, we are going break it this year. Not only will we break it but it should be be a very substantial margin.
Through October 1st, sales of these homes are 14% above the same period in 2005. There is no reason to believe there will be any slow down over the last quarter. In fact at this moment, there are enough homes under contract that a new record is realistically already in the books. This year will be the 8th straight year that we have not seen a softening in the ultra-luxury market. By no coincidence, the bull market in stocks is also on a similar run. Times are good and many experts predict the run in the Dow Jones still has much room. Let the bull run. As long as it does real estate prices in the Jupiter area should continue to climb.
Keep your eyes on interest rates, as if there is a potential spoiler out there it is the cost of borrowing money moving higher. Today, the average overnight rate on a conforming fixed rate 30 year loan, is up for the 5th straight week. But the increases have not been great and that conforming loan is still at a historically favorable rate of 3.83%. The Fed keeps saying they not only are going to stop purchasing US debt but they are intent on selling the 4.5 trillion of the Treasuries they hold. If they do things can change. In a hurry.
But for now the Bull is running with stocks and real estates so let him run…….