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Northern Palm Beaches homes continue to get more expensive

Let’s face it. The economy is on better footing than it has been in many years. The stock market seems to have gained momentum with unemployment now under 4% for the first time in eons. When people are happy with their job, comfortable with their future, it’s a boom for housing. 

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While home sales in the Jupiter area have not been robust, they have been solid, and properties selling for a million dollars or more are breaking record, after record, after record and remain at all time highs, far above last year’s record breaking pace.

Keeping things in check is inventory, as the number of homes for sale in the middle of May are at the lowest levels we have seen since 2015. The quality of that inventory, at many price points, is questionable and to find things “done right” is an expensive venture these days. Interest rates have been on the rise and most experts expect them to head even higher. 

While job growth has been fantastic, many argue that wages are not keeping up and affordability in places like Jupiter is a big problem. At this moment, in Jupiter, if you are looking for a single family home to purchase, you have a total of 421 to consider. In a town where 1,217 homes have sold over the past year that just isn’t much inventory. With the median list price of a single family home sitting at $749,000 affordability concerns arise for most buyers. Over the past year, the median sales price has been $490,000. You start to see some real affordably issues as you start unrolling all of the numbers.

As of May 1st, the median single family home price in the Northern Palm Beaches is up once again for the 5th straight month and currently sits at $497,500. That, my friends, is for the median single family home which means that half the homes that recently sold closed at higher numbers. Finding a single family home constructed of concrete block for under $200,000 is an almost impossible proposition and buyers need to be positioned for any really good opportunity.

Pending home sales are down over the past month, but stronger than expected. Inventory levels are also down, but also higher than we would expect, if we follow trends from a historical view point.

If you are doing anything real estate, please seek education. You need an advocate who cares about your goals and here at Paradise Sharks we strive to add value to every transaction we touch. If we can’t save you money, quite frankly, we have not done our job. If we can ever answer any real estate related question please contact us anytime at tom@paradisesharks.com or 561.308.0175. The right home is out there, we just need to find it.