Condo prices continue to rise in the Northern Palm Beaches
For the third straight month, the median price of a condominium in the Northern Palm Beaches has become more expensive. As of May 15th, that median price sits at $237,250, which is a 6.5% increase above year ago numbers. Jupiter condo prices are even higher than the regional numbers with the median sales price today sitting at $292,500.
Seasonal buying is pretty much over, so demand slows. Inventory levels also tend to fall during during the summer months, so the interplay between supply and demand gets confusing and where prices go from here over the next few months is anyone’s guess.
Interest rates are up and threatening to move higher. The economy is churning along with the stock market once again gaining momentum, but, like housing, prices have somewhat stabilized. Housing affordability remains a concern. Rental rates on single family homes in Jupiter have pulled back slightly so far in 2018, but rents on Jupiter condos are up again for the eighth straight year.
With the inventory of resale homes at low levels, especially ones in good condition, we look to new construction for answers. But material costs for developers continue to increase as does the cost of raw land. To keep margins where they need to be, that land tends to be off the beaten path, or very expensive. In Palm Beach Gardens Alton neighborhood, developers sales that have been entered into our Multiple Listing Service over the past 6 months closed at a median price per livable square foot of $234 compared to $216 in the overall market.
If you want to see what off the beaten path looks like, take a trip out to Arden in Wellington where one of the amenities is a 5 acre community farm. The median list price per square foot of homes listed on the MLS in Arden is currently at $152. Pay attention to lot size if being outdoors enjoying the Florida lifestyle matters to you. That Alton home doesn’t have much outdoor space while that home in Arden will probably give you a lot size of 7,000 SF+/- and back up to something with privacy or view. Location, quality, size, age, buyers have very significant decisions to make in this market.
Remember, with new construction do not go it alone. Paradise Sharks takes great pride in giving our clients a credit at closing, on any developer sale where we are your broker, equal to 50% of the total commission we are paid on that transaction. That alone can be many thousands of dollars and help pull new construction costs down. Call us anytime and ask about our New Construction Splash program.
When the rains stop, and that glorious sunshine returns, it will be a great time to get searching for that perfect home. Remember, when doing anything real estate, interview at least 3 brokers and ask questions, lots of them. This is a market, whether you are buying, or selling, to be educated. If Paradise Sharks can ever be of help educating you it’s super easy to reach us at firstname.lastname@example.org or 561.308.0175. Not only do we love to educate, we love to provide our clients awesome customer service all while saving them money. It’s what we do; adding value to every transaction we touch.