Too far too fast as local condo prices pull back slightly
For the first time in 5 months, median condo prices in the Northern Palm Beaches have gone down. After prices ran up over 14% since December, the median price pulled back slightly over the past month to $245,000 from $246,500.
Certainly nothing to be concerned with as we continue to see condo prices being pumped up as some entry level buyers have been priced out of the single family market where median prices hover around the $500,000 range.
Inventory of condos in the Jupiter area, currently sits at 4.5 months that signals a balanced market slightly favoring sellers. About 6% of condo sellers in the area have realized their prices were too high and have made price reductions over the past week or so. Overpricing a property is one of the biggest mistakes any seller can make.
There remains a shortage of good quality properties that are priced right and the best new offerings are still selling very quickly. We currently have 29 condos ready to close in the area that were snapped up and put under contract within a few days of hitting the market. Buyers need to be poised to take advantage of the right opportunities or others will.
As long as interest rates remain below 5% on a 30 year fixed mortgage and the economy recovery continues real estate in south Florida will continue to do very well.