More homes for buyers to consider as Jupiter home prices start to stab
The pages of the calendar keep turning faster than I would like and hard to believe another month is already half over. Here in southeast Florida, we are praying for those in the far other corner of our state, who were hit hard by Hurricane Michael last week. Category 4 storms do not make landfall very often and in an area where frame construction is prevalent and many areas are low lying it really is a recipe for disaster. Even though the area is not as heavily populated, I guarantee you the cost estimates for damage are going to be very, very high. Insurance rates and construction costs will be pushed higher throughout the state and those costs will affect the overall real estate market.
So, besides a major hurricane, what has happened to the real estate market over the first half of October here in the Northern Palm Beaches? Many things pulling the market in different directions, but finally we are starting to see median prices stabilizing after months of falling. Over the past 30 days, the median condo price is up to $240,000 and while that is not a big jump from the $238,900 last month, it is a step in the right direction. Single family home prices are still falling, but if I was a betting man I would wager you will see them stabilize and even climb a bit higher this month in step with condo prices.
So far this month, pending home sales in the Jupiter area have fallen 3.2% but looking at historical numbers this is a fairly strong performance. Inventory levels have finally started to climb and are up 5.5% in October. These numbers are in line with expectations and buyers today have 2.9% more homes to look at than they did a year ago.
Interest rates that have been moving higher to the highest levels we have seen since 2011, have pulled back slightly over the past couple days. I cannot say it often enough, but keep a very close eyes on rates as if they continue to climb it will not be good for real estate.
The Jupiter real estate market continues to look for a stimulus to push it in a more positive direction but a little consolidation after such strong price moves over the past 7 years is probably a good thing. Homes that close with prices above the $1M threshold continue to drive the overall market and continue to set record after record.
Median rental prices for both single family homes and condos in Jupiter are down for the year and the last time that happened was in 2005/2006. Totally different market back then, but rents bear watching and again probably a good thing to see them pull back after a decade of prices rising.
We were at an Oktoberfest party over the weekend and someone asked me what I was recommending to my clients these days and the best word I can use is caution. Each and every property is different as are the metrics that surround a home. It doesn’t matter if you are buying, or selling, you truly need to sit down with at least three brokers and get complete answers to all your questions. Understand what they are charging you and what you are receiving for your money. Seeing better opportunities in today’s market but still a lot of really bad quality out there so make sure you are teamed with somebody who knows what they are doing. We have been building, or selling, real estate for decades and would love the opportunity to show you how to make an educated decision. Contact Paradise Sharks anytime at 561.308.0175 or firstname.lastname@example.org.