Median Jupiter condo price falls again to wrap up 2018
It’s been a roller coaster ride for real estate during 2018 here in the Northern Palm Beaches. Buckle up, as all signs point to a very interesting year heading our way. Million dollar sales in the Jupiter region remain very, very strong with the rest of the market seemingly taking a long nap. Pending home sales were already at 6 year lows when we started December and today they are down another 14% so far this month.
Inventory stinks and probably isn’t going to get better for a number of reasons. New construction remains very expensive and many who would like to sell can’t justify it financially as interest rates move higher. Imagine yourself having a 30 year fixed mortgage at 3.5% then you can see how motivated you would need to be today to go out and buy a new home and be saddled by a mortgage at 5%, or higher. You are most likely to stay put. The Fed seems intent of continue moving interest rates higher and I keep saying, and will keep saying, that any significant move to they upside will have a very strong negative impact on real estate.
Stock market turmoil, more turmoil out of Washington, the list of concerns is real and puts a huge question mark on what happens to the real estate market in the coming year.
As of December 15th, the median condo price in the Northern Palm Beaches dropped to $230,000 from $235,000 one month ago. On the bright side, condo prices in the area are up 6.5% from year ago numbers and 2018 will be the 7th straight year condo prices have pressed higher. While single family home prices in the Jupiter area have moved to all time new highs, the condo market is still far below it’s record highs of 2005/2006.
With pending home sales at multi-year lows, it is almost a sure thing that the number of condo closings in the Jupiter area are going to fall even further over the next 2 months. Right now it looks like pricing pressure for a median condo will be rebounding and moving higher over the next 60 days, mainly because of inventory where most buyers are looking for turnkey units and they are more expensive. After February it is anyone’s guess as to where the real estate markets heads.
The big question is, are this winters visitors going to be writing contracts and pushing pending home sales higher? Watch closely, as if sales do not perk up by the end of January then 2019 may be the first year in a long time where we may see home prices in the Jupiter area pulling back.
Always interview multiple brokers when doing anything real estate. Seek to be educated and make informed decisions. If you are selling, and want to see how Paradise Sharks can provide a full service listing agreement for a total cost to the seller starting at 4% or how all buyers who utilizeParadise Sharks as their broker get significant credits at closing contact us anytime at 561.308.0175 or firstname.lastname@example.org. Put our decades of experience to work for you and find out what taking the middleman out of real estate means to your pocketbook. No franchise fees, no broker splits and no additional costs to our clients means we really can do more, for less.