Jupiter condo prices continue their decline
As of September 15th, the median condo price in the Northern Palm Beaches has fallen again for the 3rd straight month. While the pullback has not been steep, it does seem prices have hit a brick wall with no signs just yet of a rebound. The median condo price in the Jupiter area is down less than 1% over the past 30 days but prices do remain 6% higher than year ago numbers.
There are a multitude or reasons we are not seeing condo prices rise over the past few months. There are not many quality remodeled units out there and buyers are shying away from properties with original finishes, as construction costs remain on the rise. Interest rates have been moving higher, and today sit at the highest levels we have seen in over 7 years. The Fed is scheduled to raise their interest rates this afternoon for the 3rd increase of the year. Tightening of the money supply, and the higher interest rates that will ensue, is not favorable to real estate prices.
We also need to look at median condo rents which had been pulling back from last year’s numbers inn Jupiter. Keep in mind they have not declined since 2007 and over that 10 year period the median rent of a Jupiter condo was up 46%. If projected revenue jumps that much it is easy to see why prices have been climbing higher each year. On the bright side, median rents have moved a bit higher over the past couple months and have moved up in line with last years numbers.
Many sellers still are under the assumption that prices are continuing their climb higher and are priced above what the market will bear. The strongest seasonal condo buying does not Strat for another 4 months and it is hared to see and solid increases in prices before then.
As interest rates rise, there will also be fewer sales as home owners with a fixed mortgage of years past will have a difficult time justifying a move and a healthy jump in carrying costs.
Real estate is very location specific and a 55+ condo in Tequesta and an ocean front unit just down the street will have a totally different set of metrics. Always seek knowledge before doing anything real estate. Interview at least three brokers and ask a lot of questions. If Paradise Sharks can ever be of help please feel free to contact us anytime at firstname.lastname@example.org or 561.308.0175.